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Consolidation of Fund Classes

Rate consolidation simplifies and reduces taxes as follows:

1. It eliminates the gross receipts threshold and allows the taxpayer to pay a tax calculated at a rate per thousand dollars of gross receipts based on the business classification.
2. It eliminates the minimum tax at the time of registration and the taxpayer simply pays the tax due on a per thousand dollar basis for the first and second year during the renewal period.
3. It consolidates business activities into six rates with nine fund classes instead of forty-two.

Since implementation of the Small Business Exemption threshold of $100,000 in 2007 all gross receipts taxpayers, who file timely, will be paying no tax if their total taxable and non-taxable worldwide gross receipts fall below $100,000. Taxpayers with taxable and non-taxable gross receipts at or above the $100,000 threshold will pay one of six rates. Specific details can be found in the ordinance [PDF, 33 pages, 123 KB].

The 2008 RENEWALS will take into account the above changes. For NEW BUSINESSES starting in 2007, these new changes took effect immediately.

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