TO: Mayor and Commissioners
FROM: Michael Coleman, Director, Community Improvement
THROUGH: Donald B. Cooper, City Manager
DATE: June 21, 2016
Title
ORDINANCE NO. 16-16: BUSINESS TAX RECEIPTS (SECOND READING).
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Recommended Action:
Recommendation
Motion to Approve on second reading Ordinance No. 16-16 amending Section 110.15, "Local Business Tax Schedule" of the Code of Ordinances to add new business classifications and to provide for 5% increase in the local business tax schedule.
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Background:
Pursuant to Florida Statute Chapter 205, local business taxes may be increased up to 5% every other year. The last increase in the local business tax schedule occurred in June 2014. This ordinance modifies Section 110.15 by increasing all local business taxes by 5%. Over the next year, the increase would give the City approximately $40,000.00 in additional revenue.
A survey was completed to compare the cost municipalities are charging for Business Tax Receipts. All City fees varied based on the type or classification of the business. However, the City of Delray Beach has a flat rate of $172.61 and does not charge an additional fee per square footage.
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
The Finance Department recommends approval.
Timing of Request:
The timing of the Ordinance is coordinated with the annual renewal of the Business Tax Receipts, which are required to be sent out by July 1, 2016 according to Florida State Statute Chapter 205.