Chapter 5.24
GROSS RECEIPTS TAX
Sections:
5.24.010 Rates.
5.24.020 Tax limit on number of multiple corporate entities.
Prior ordinance history: Prior code §§ 4-123.020 and 4-123.030.
5.24.010 Rates.
For tax years beginning on or after January 1, 2025, every person who engages in business at a fixed place of business within the city shall pay a license tax at the following rates to the maximum tax payment amount set forth in subsection B of this section:
• A minimum of $200.00 for gross receipts between $0.00 and $267,000 for general contractors or a minimum of $100.00 for gross receipts between $0.00 and $133,500 for all other businesses;
• 0.075% ($0.75 per $1,000) for gross receipts between $133,500 and $4,400,000;
• 0.088% ($0.88 per $1,000) for gross receipts between $4,400,001 and $8,500,000;
• 0.1% ($1.00 per $1,000) for gross receipts between $8,500,001 and $12,650,000;
• 0.113% ($1.13 per $1,000) for gross receipts between $12,650,001 and $16,750,000;
• 0.125% ($1.25 per $1,000) for gross receipts between $16,750,001 and $20,900,000;
• 0.138% ($1.38 per $1,000) for gross receipts between $20,900,001 and $25,000,000;
• 0.3% ($3.00 per $1,000) for gross receipts over $25,000,000.
For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.
These rates are subject to the following:
A. Minimum Tax. The minimum tax shall be as follows:
|
Effective Date |
General Contractor |
All Other Businesses |
|---|---|---|
|
January 1, 2025, and thereafter |
$200 |
$100 |
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.
B. Maximum Tax Payment. The limit upon which the license tax shall be computed will be as follows:
1. Effective January 1, 2025, the maximum tax payment will be two hundred fifty thousand dollars.
2. Effective January 1, 2026, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars. (Ord. 686 § 1 (Exh. 1), 2024; Ord. 572 § 1 Exh. A (part), 2013: Ord. 84 § 1, 1973: Ord. 45 § 1 (part), 1972: prior code § 4-123.010)
5.24.020 Tax limit on number of multiple corporate entities.
Subject to the provisions of Section 5.04.040, the gross receipts of separate legal entities conducting business at the same location that use separate books and records, other than those entities which are considered investment funds or trusts established for the sole purpose of providing investment instruments to investors, shall be reported on a form required by the collector, and the computation of the license taxes payable under Section 5.24.010 shall be computed based on the three legal entities with the largest reported gross receipts. (Ord. 572 § 1 Exh. A (part), 2013)