§ 959.

RATE OF GROSS RECEIPTS TAX: CONTROLLER COMPUTATION

a.

Commencing on the operative date of the Gross Receipts Tax Ordinance, the Controller shall compute the rate of gross receipts tax for Sections 953.1 through 953.7 in accordance with subsection (b) of this Section. The Controller shall certify and publish such rates on or before September 1 of each year.

b.

Gross Receipts Tax Computation. The Controller shall compute the gross receipts tax rates for each tax year by multiplying each base rate in Sections 953.1 through 953.7 by the “Gross Receipts Tax Rate Adjustment Factor,” which shall be determined according to the following table and formulas, but no gross receipts tax rate shall exceed the base rates provided by Sections 953.1 through 953.7.

Gross Receipts Tax Rate Adjustment Factor Computation Table



Tax Year Gross Receipts Tax Rate Adjustment Factor (GADJyear)
2014 GADJ14 = 10%
2015 GADJ 15 = 25% + EXP 15
2016 GADJ 16 = 50% + EXP 16
2017 GADJ 17 = 75% + EXP 17
2018 GADJ 18 = 100% + EXP 18

Where: “EXPyear” is the “Excess Payroll Expense Tax Revenue Factor,” a percentage that reduces the gross receipts tax rate adjustment factor for a year in which the payroll expense tax rate determined under Section 903.1 of Article 12-A becomes zero, and which adjusts for excess payroll expense tax revenue collected for that tax year. The Controller shall compute EXPyear according to the following table and formulas:

1.

In any year in which PAYRATEyear is greater than zero, where PAYRATEyear is determined under Section 903.1 of Article 12-A, EXPyear is zero.

2.

In the first year in which PAYRATEyear is zero, where PAYRATEyear is determined under Section 903.1 of Article 12-A, EXPyear shall be computed according to the following table and formulas. In subsequent years, GADJyear shall be the same value it was in the prior year:

Excess Payroll Expense Tax Revenue Factor Computation Table



Tax Year Excess Payroll Expense Tax Revenue Factor (EXPyear)
2015 EXP 15 = [(1.125% + PADJ 15 ) × (PAYTAX 14 /PAYRATE 14 )]/(GRTAX 14 /10%)
2016 EXP 16 = [(0.750% + PADJ 16 ) × (PAYTAX 15 /PAYRATE 15 )]/GRTAX 15 /25%)
2017 EXP 17 = [(0.375% + PADJ 17 ) × (PAYTAX 16 /PAYRATE 16 )]/GRTAX 16 /50%)
2018 EXP 18 = [PADJ 18 × (PAYTAX 17 /PAYRATE 17 )]/(GRTAX 17 /75%)

Where: PADJyear, PAYTAXyear, and GRTAXyear are determined under Section 903.1 of Article 12-A.

c.

Notwithstanding any other provision of this Article, in any year in which the payroll expense tax rate determined under Section 903.1 of Article 12-A is zero, the gross receipts tax rates for that year and all future years shall be as the Controller computed for that year, except that for tax year 2021 and all future years, the rate under Section 953.7(a), for gross receipts over $25,000,000 only, shall be the sum of the rate established under this Section 959(c) and 0.025%. In no event shall the rate established under Section 953.7(a) by the preceding sentence, for gross receipts over $25,000,000, exceed 0.325%. The Controller shall certify and publish such rates by September 1 of that year.

d.

Notwithstanding any other provision of this Article, the gross receipts tax rates for 2019 and all future years shall be the rates in effect in tax year 2018, except that for tax year 2021 and all future years, the rate under Section 953.7(a), for gross receipts over $25,000,000 only, shall be the sum of the rate established under this Section 959(c) and 0.025%. In no event shall the rate established under Section 953.7(a) by the preceding sentence, for gross receipts over $25,000,000, exceed 0.325%. The Controller shall certify and publish such rates on or before September 1, 2019, at which time the Controller’s duty to compute, certify and publish the payroll expense tax rate shall cease.

History

(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)

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