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CITY OF RIVERSIDE <br />INTEROFFICE MEMO <br /> <br />TO: <br /> <br />Colleen Nicol <br />City Clerk <br /> <br />DATE: September 28, 1998 <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Jerry Rogers <br />Finance Direct~ <br />BUSINESS TAX RATE CHANGES, NEW BUSINESS TAX CEILING AND <br />ADDITIONAL FEES, DEPOSITS, AND CHARGES IN ACCORDANCE WITH <br />CHAPTER 5.04,330 OF THE RIVERSIDE MUNICIPAL CODE EFFECTIVE <br />NOVEMBER 1, 1998. <br /> <br />Chapter 5.04 of the Riverside Municipal Code provides for an annual adjustment of no more than <br />5% to reflect the change in the Consumer Price Index for the previous twelve months. The change <br />in the CPI from August 1997 to August 1998 was 1.8%. <br /> <br />Chapter 5.04.330 states "said change shall be rounded off to the nearest whole percent per hundred <br />as follows: If the remaining fraction of a per cent is forty-nine one-hundredths of a percent or less <br />such fraction shall be omitted. If the remaining fraction of a percent is fifty one-hundredths of a <br />percent or more, the next highest percent shall be applied". Therefore, based on a CPI change of <br />1.8% all business tax rates have been adjusted upward 2%. <br /> <br />All base tax rates are rounded off to the nearest twenty-five cents, each multiple of gross receipts tax <br />rates are rounded to the nearest one cent, and all additional tax rate multiples are rounded to the <br />nearest dollar. <br /> <br />In addition to rate changes, the Municipal Code provides for an annual adjustment to the business <br />tax ceiling and to all fees, deposits and charges of no more than 5% to reflect the change in the CPI <br />for the previous twelve months. Accordingly, the business tax ceiling, all fees, deposits and charges <br />have been updated by 2%. <br /> <br />cc: Tom Gehrken, Business Tax Supervisor <br /> <br />attachments <br /> <br />RATE98 <br /> <br /> <br />