If a person, or a combined group as described in Section 956.3, engages in business activities described in more than one of Sections 953.1 through 953.7, inclusive, of this Article, the rate or rates of gross receipts tax to be applied to that person or group, and the method for determining gross receipts in the City, shall be determined as follows:
If more than 80 percent of its gross receipts, determined in accordance with Section 956, are derived from business activities described in only one of Sections 953.1 through 953.7, inclusive, then the rules of that applicable Section apply to all of its gross receipts derived from all business activities.
If its business activities in the City are described in more than one of Sections 953.1 through 953.7, inclusive, and subsection (a) of this Section does not apply, then such person or combined group shall separately compute the gross receipts tax for each set of business activities as provided in the Section applicable to that particular set of business activities, modified as follows:
if the set of business activities described in any of Sections 953.1 through 953.7, inclusive, generates less than 20 percent of the total gross receipts of the person or group, then the receipts and payroll of any such set of activities may be combined for all purposes related to computing the gross receipts tax with whichever set of that person’s or group’s activities are taxed at the highest rate;
the small business exemption provided in Section 954.1 shall apply only if the sum of receipts within the City from all sets of business activities does not exceed $1,000,000 in total;
the progressive rates described in Sections 953.1 through 953.7 apply on an aggregate basis for businesses with multiple sets of activities;
the applicable rate for each set of business activities shall be determined in numbered order of the Sections describing each set of business activities; i.e., the gross receipts and tax for business activities described in Section 953.1 should be determined first, Section 953.2 second, and so on;
the rate(s) applicable to any set of activities after the first shall be determined by adding together the gross receipts determined for all previous sets of activities and applying the rate scale commencing with the total gross receipts so determined; and
the gross receipts tax liability for the person or combined group shall be the sum of the liabilities for each set of business activities.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)