§ 68-33. Occupation tax.
(a)
New and renewal registration required.
(1)
Every business within the city or any business doing or engaging in business within the city is required annually to have an occupation tax permit from the city for the privilege of engaging in a business, profession or occupation within the city limits, unless city licensing or taxing is prohibited under state law or the activity is exempted by this article.
(2)
Every person required to pay an occupation tax, including a renewal occupation tax, shall submit an application to the community development department, which application shall conform to the requirements of this article and corresponding fee schedule.
(3)
Any person required to pay an occupation tax under this article who changes the business location, owner or name from one name to another shall begin the occupation tax permit process from the beginning, as if opening a new business. Occupation tax permits are not transferable from one business to another.
(b)
Classifications of persons who owe occupational tax.
(1)
For the year 1996 and succeeding years thereafter, the following shall be subject to an occupational tax:
a.
Each person engaged in any business, trade, profession or occupation in the city that has a location within the city;
b.
Each person engaged in any business, trade, profession or occupation in the city that has a location within the state; or
c.
Each person engaged in any business, trade, profession or occupation in the city with no location or office in the state that has one or more employees or agents who exert substantial efforts within the city for the purpose of soliciting business or serving customers or clients.
(2)
For persons qualifying under subparagraph (1)c. above, the following additional rules shall apply. Gross receipts of a business or practitioner for purposes of this section shall include only those gross receipts reasonably attributable to sales or services in this state and nation-wide profitability ratios shall apply only to types of business transacted within this state. Businesses and practitioners subject to this section shall be required to pay occupation tax to only one local government in this state: the local government for the municipal corporation or county in which the largest dollar volume of business is done or service is performed by the individual business or practitioner. If a business or practitioner subject to this section provides to the local government in this state which is authorized to levy occupation tax on such business or practitioner proof of payment of a local business or occupation tax in another state which purports to tax the business's or practitioner's sales or services in this state, the business or practitioner shall be exempt from occupation tax under this section.
State Law reference— Similar provisions, O.C.G.A. §§ 48-13-6(b), 48-13-7(b).
(c)
Criteria for taxation classification.
(1)
Criteria for persons other than professionals classified under state law.
a.
Generally. In determining the amount of occupation tax to be levied on an individual business or practitioner, the city classifies all businesses or practitioners by the same combination of criteria: Gross receipts of the business or practitioner in combination with the profitability ratio for the type of business, profession or occupation as measured by nation-wide averages derived from statistics, classifications or other information published by the United States Office of Management and Budget, the United States Internal Revenue Service or successor agencies of the United States.
b.
Specifically. An occupation tax shall be levied based upon the gross receipts of the business or practitioner in combination with the profitability ratio for the type of business, profession or occupation as measured by nationwide averages utilized by the city. Each type of business shall be assigned to a profit class based on the profitability ratio for that business type. The occupational tax rate levied will be based on the profit class of the dominant line of the business as defined by the standard industrial classification system. Gross receipts shall be defined as set forth in section 68-31. The tax rate determined by profitability ratios in combination with gross receipts for each business, trade, profession or occupation shall be as follows and will be developed and updated annually by the city based on variables of changing budget requirements and gross receipts. A detailed example of calculations used to formulate the occupational tax schedule can be obtained from the city upon request.
c.
Occupation tax schedule:
Profit Class Tax Rate 1 1 = .000778 2 2 = .001167 3 3 = .001556 4 4 = .001945 5 5 = .002334 6 6 = .002723 d.
Minimum fee. Notwithstanding the amount of gross receipts of the business, every business shall be subject to the payment of a minimum flat fee as set forth in the schedule of fees and charges.
State Law reference— Similar provisions, O.C.G.A. § 48-13-10.
(2)
Criteria for professionals classified under state law.
a.
This section applies to practitioners of professions as described in O.C.G.A. § 48-13-9(c)(1) through (18), including the following:
1.
Lawyers;
2.
Physicians licensed under O.C.G.A. § 43-34-1 et seq.;
3.
Osteopaths licensed under O.C.G.A. § 43-34-20 et seq.;
4.
Chiropractors;
5.
Podiatrists;
6.
Dentists;
7.
Optometrists;
8.
Psychologists;
9.
Veterinarians;
10.
Landscape surveyors;
11.
Practitioners of physiotherapy;
12.
Public accountants;
13.
Embalmers;
14.
Funeral directors;
15.
Civil, mechanical, hydraulic or electrical engineers;
16.
Architects;
17.
Marriage and family therapists, social workers and professional counselors;
18.
Dealers of motor vehicles, as defined in O.C.G.A. § 10-1-622(1);
19.
Owners or operators of bona fide coin operated amusement machines, as defined in O.C.G.A § 48-17-1, and owners or operators of businesses where bona fide coin operated amusement machines are available for commercial use and play by the public, provided that such amusement machines have affixed current stickers showing payment of annual permit fees, in accordance with O.C.G.A. § 48-17-9;
20.
Merchants or dealers as defined in O.C.G.A. § 48-5-354 as to their deliveries to businesses and practitioners of professions and occupations in areas zoned for commercial use; and
21.
Any other business, profession or occupation for which state licensure or registration is required by state law, unless the state law regulating such business, profession or occupation specifically allows for regulation by local governments.
b.
Those persons listed in subsection a. above shall elect as their entire occupation tax one of the following:
1.
The occupation tax based on gross receipts in combination with the profitability ratios as provided in subsection (c)(1); or
2.
A fee as set forth in the schedule of fees and charges (not to exceed $400.00 per practitioner who is licensed to provide the service), such tax to be paid at the practitioner's office or location; provided, however, the practitioner electing to pay such fee per practitioner shall not be required to provide information to the city relating to the gross receipts of the practitioner.
State Law reference— Similar provisions, O.C.G.A. §§ 48-13-9; 48-13-10.
(d)
Limitations on occupation tax.
(1)
Businesses with multiple locations, at least one of which is outside the city.
a.
In levying occupation tax upon a business or practitioner with a location or office situated in more than one jurisdiction, including businesses or practitioners with one or more locations or offices in the state and one or more locations outside the state, the city shall allocate the gross receipts of the business or practitioner for occupation tax purposes in accordance with one of the following methods:
1.
Where the business or practitioner can reasonably allocate the dollar amount of gross receipts of the business or practitioner to one or more of the locations or offices on the basis of product manufactured in that location or office or the sales or other services provided in that location or office, the city shall tax the gross receipts generated by the location or office within the city; or
2.
Where the business or practitioner cannot reasonably allocate the dollar amount of gross receipts among multiple locations or offices, the business or practitioner shall divide the gross receipts reported to all local governments in the state by the number of locations or offices of the business or practitioner which contributed to the gross receipts reported to any local government in the state and shall allocate an equal percentage of such gross receipts of the business or practitioner to each location or office.
b.
In no instance shall the sum of the portions of the total gross receipts of a business or practitioner taxed by all local governments exceed 100 percent of the total gross receipts of the business or practitioner.
c.
In the event of a dispute between the business or practitioner and the city as to the allocation under this section, the business or practitioner shall have the burden of proof as to the reasonableness of this allocation.
d.
Upon request, businesses or practitioners with a location or office situated in more than one jurisdiction shall provide to the city the following:
1.
Financial information necessary to allocate the gross receipts of the business or practitioner; and
2.
Information relating to the allocation of the business' or practitioner's gross receipts by other local governments.
e.
When more than one local government levies occupation tax on a business or practitioner that has locations encompassed by more than one local government and the local governments use different criteria for taxation in accordance with O.C.G.A. § 48-13-10, local governments which use the criterion described in O.C.G.A. § 48-13-10(a)(3) are not authorized to tax any greater proportion of the gross receipts than authorized by subsection (a) of same, and local governments which use the number of employees as a criterion for taxation are authorized to tax the number of employees who are employed within the local government's geographic jurisdiction. In the case of an employee who works for the same business or practitioner in more than one municipal corporation or county, the municipal corporation or county in which the employee works for the longest period of time within the calendar year shall be authorized to count the individual as an employee who is employed within the local government's geographic jurisdiction for purposes of occupation tax.
State Law reference— Similar provisions, O.C.G.A. § 48-13-14.
(2)
Businesses with more than one type of service or product. For businesses or practitioners with more than one type of service or product, the total occupation tax shall be determined by apportioning the gross receipts by category of service or product in proportion to the gross receipts generated by each service or product and taxing each portion of the gross receipts according to the profitability ratio for that particular type of business.
State Law reference— Similar provisions, O.C.G.A. § 48-13-12.
(e)
Each line of business to be identified on occupational tax application and license. Each business shall identify the line or lines of business that the business conducts in its occupation tax application. No business shall conduct any line of business without first having that line of business obtain an occupation tax permit.
(f)
Inclusion of administrative fee.
(1)
A nonprorated, nonrefundable administrative fee as set forth in the schedule of fees shall be required on all occupation tax accounts for the initial startup, renewal or reopening of those accounts.
(2)
Any person or business subject to an occupation tax under this article who moves from one location to another shall notify the community development department in writing of the move and the new address on a form provided by the department no later than the day of moving.
(Ord. No. 19-2006, § 1, 10-9-06; Ord. No. 13-2007, § 1, 8-22-07)
State law reference
Similar provisions, O.C.G.A. § 48-13-10(e).