Business Tax - First, Second, Third Certificate and Thereafter

Business Tax - First, Second, Third Certificate and Thereafter Image

Posted: January 26th, 2023 4:19 PM

Last Updated: January 26th, 2023 4:37 PM

5.04.240 “Annual Gross Receipts”—Definition—First Certificate.

“Annual gross receipts” for a newly established business receiving its first business tax certificate shall mean the total gross receipts received from the initiation of any business activities to the expiration of the person’s first business tax certificate.

Every person applying for the first business tax certificate for a newly established business shall provide a reasonable estimate of their anticipated gross receipts for the period from the initiation of any business activities to the expiration of its first business tax certificate. The applicant shall pay an initial tax payment based on the estimate.

In a manner and time prescribed by the City Administrator, the City shall allow a credit against future taxes for any overpayment in comparison to actual gross receipts and the applicant shall make an additional payment for any undercharge in comparison to actual gross receipts. The true up required by this paragraph shall proceed regardless of whether the person seeks a second business tax certificate.

The City Administrator may demand any information necessary to verify any estimate, reject any estimate, or unilaterally amend any estimate to conform to the City Administrator’s understanding of a reasonable estimate of any person’s anticipated gross receipts based on any factual information in the City Administrator’s possession.

5.04.245 “Annual Gross Receipts”—Definition—Second Certificate.

“Annual gross receipts” for a business receiving its second business tax certificate means the total gross receipts received from January 1 to December 31 of the year for which the business tax certificate is issued.

Every person applying for a second business tax certificate shall provide a reasonable estimate of their anticipated gross receipts for the period from January 1 to December 31 of the year for which the business tax certificate is issued. The applicant shall pay an initial tax payment based on the estimate.

In a manner and time prescribed by the City Administrator, the City shall allow a credit against future taxes for any overpayment in comparison to actual gross receipts and the applicant shall make an additional payment for any undercharge in comparison to actual gross receipts. The true up required by this paragraph shall proceed regardless of whether the person seeks a further business tax certificate.

The City Administrator may demand any information necessary to verify any estimate, reject any estimate, or unilaterally amend any estimate to conform to the City Administrator’s understanding of a reasonable estimate of any person’s anticipated gross receipts based on any factual information in the City Administrator’s possession.

5.04.250 “Annual Gross Receipts”—Definition—Third Certificate and Thereafter.

“Annual gross receipts” for a business receiving its third business tax certificate, and for any business tax certificates, means the total gross receipts received from January 1 to December 31 of the year immediately preceding the year for which the business tax certificate is issued.

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