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<br />Cost of operations for resident business rate calculation instructions:
<br />The following instructions will help you determine your business tax assessment due. The annual Business License Tax Renewal is based on the
<br />attributable grass receipts of the business. Attributable gross receipts are defined as the cost of doing business (gross expense) of the business location, during
<br />the preceding calendar year (January 2022 — December 2022). To renew your license and calculate your business tax assessment, fallow these steps.
<br />Step #1: Entertotal attributable gross receipts on the appropriate line on the Business License Tax Renewal Notice located on the bottom portion of the front
<br />side of this form.
<br />For business locations which are the sole or separate branch facility or office engaged in providing administrative Imanagement related services, including, but
<br />not limited to record keeping, data processing, research and development, advertising, public relations, personnel administration or legal services; or, in the
<br />event separate sales or receipt records are not maintained for local office; or, in the event any retailinglwholesalingJmanufacturing or processing activity
<br />conducted does not generate gross receipts, in connection with sales, rentals or services performed at one or more other facilities located within or outside of
<br />the City of Santa Ana; then, the annual Business License Tax Renewal far your business is based on the attributable gross receipts of the business .
<br />Attributable gross receipts are reported for the period of the preceding calendar year. You may elect to choose either of the two following methods
<br />when reporting attributable gross receipts:
<br />Method 1: Straight Cost of Doing Business Basis: The branch facility or office location's attributable gross receipts are equal to the cast of doing
<br />business. COST OF DOING BUSINESS means the total cost of maintaining the branch facility, offce or location, including, but not limited to all wages, salaries,
<br />commissions, bonuses paid, all rent andJor depreciation taken, telephone, postage, utilities, janitorial and any other expenses allocated for maintaining the
<br />facility, office, or location_
<br />Method 2: Proportional Basis: Proportional attributable gross receipts are calculated as follows: 1) Establish the ratio of the company's total cost of doing
<br />business to the branch facility or office location's individual cost of doing business. [COST OF DOING BUSINESS means the total cost of maintaining the branch
<br />facility, office, or location, including, but not limited to all wages, salaries, commissions, bonuses paid, all rent andfor depreciation taken, telephone, postage,
<br />utilities, janitorial and any otherexpenses allocated for maintaining the facility, office, or location.] 2) Apply this same ratio, using the company's total gross
<br />receipts, to determine the proportional amount of the total grass receipts which are attributable to the local branch facility or -office location . (Example: If the
<br />local branch facility or office location's cost of doing business ratio equals 151% of the company's total cost of doing business, then 15% of the company's total
<br />gross receipts are attributable to the local branch facility).
<br />Stop 92: Compute the business tax here
<br />Suhtatal Rounded to
<br />Gross Receipts From: Enter 2022 Gross Receipts on the Appropriate Line Below: Base Fee Nearest Whole Do liar
<br />x 00065 = $ + 5 60 = S
<br />Enter Subtotal Rounded to Nearest Whole Dollar here: Slf sum is greater than 5100,000 enter, only enter $100,000) = S
<br />Add Registration Fee: + $ 15.00
<br />Add State of California Disability Access and Education Fund Fee: + S 4.00
<br />Add Previous Balance or Subtract credit, if reflected here': + S 0.00
<br />Total Amount Due: = S
<br />"Note: There may be a previous balance forward owed or a credit amounton file. This figure will be printed next to Previous Balance on the Renewal Notice on the
<br />front side of this form and is also printed in the table above. If no previous balance is owed or there is no credit on file, a zero will appear.
<br />Gross Receipts Deposit Accounts
<br />Gross Receipts Deposit Renewal are accounts that have deposited funds with the City and are subject
<br />to a gross receipts assessment. This occurs with new businesses that are required to pay a business
<br />license tax but lack the gross receipts history necessary for assessment. Reporting information on Gross
<br />Receipts Deposit accounts are required to be provided by April 30 and the data received is then assessed
<br />for the initial fiscal year period and then projected (annualized) for calculation of the following renewal
<br />fiscal year. Deposit amounts are then applied accordingly. Any unpaid net assessment remaining is
<br />billed without penalty or interest. After a full calendar year of operation, subsequent renewals are
<br />calculated based on the prior year's gross receipts. Gross Receipts Deposit Renewals become
<br />delinquent if not paid by the May 1 of each year.
<br />Variable Flat Rate Assessment Accounts
<br />Variable Flat Rate taxes are required to be paid annually and are due and payable on June 1 of every
<br />year. Variable Flat Rate licenses shall become delinquent if not paid by July 1 of each year.
<br />The Table below gives some statistical information relating to the volume involved in the Variable Flat
<br />rate renewals broken down into their various business tax groups as of July 31, 2023.
<br />City of Santa Ana RFP No. 23-165 Page 42 of 196
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