§ 5.04.620. Small business exemption.

A.

Notwithstanding any other provisions of this chapter, "small business enterprises" as hereinafter defined, shall be exempt from payment of business tax; provided, however, that small business enterprises shall pay the registration fee pursuant to Section 5.04.100 and shall submit an annual statement pursuant to Section 5.04.090.

B.

The term "small business enterprise" shall mean and include any person (other than persons subject to taxation pursuant to Section 5.04.420 and 5.04.430 of this code):

1.

Whose tax basis under this chapter is set as gross receipts;

2.

Whose annual gross receipts do not exceed two thousand five hundred dollars ($2,500.00); and

3.

Any person claiming exemption from the requirement of paying the business license tax under this section shall be required to obtain a business license and timely file for exemption and subsequent renewals before the delinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent, shall render the small business exemption inapplicable and shall subject the person to the tax that would otherwise be payable as well as to any interest and penalties applicable thereto. Persons claiming exemption shall be required to pay the business licenses application fee and all other applicable city fees, and to obtain all permits required for the operation of the business.

4.

Any person claiming exemption under this section shall submit documentation evidencing the total taxable and nontaxable gross receipts of the applicant in support of the initial exemption registration and the annual exemption renewal. Such documentation shall comply with the requirements established by the Finance Director to ensure accuracy and validity of the city's determination on the exemption claim.

5.

Beginning with the 2010 tax year, the maximum annual gross receipts threshold for the small business exemption shall be adjusted to reflect the rate of inflation every three years to the level equal to the cumulative change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI) or other method of measuring the rate of inflation which the City Administrator determines is reliable and generally accepted, over the three preceding fiscal years, and rounding the exemption amount to the nearest one hundred dollars ($100.00).

(Ord. 12691 § 4, 2005: Ord. 12691 § 3, 2005)