§ 68-44. Option to establish exemption or reduction in occupation tax.

(a)

The mayor and city council may by subsequent ordinance provide for an exemption or reduction in occupation tax or a credit against occupation tax owed to one or more types of businesses or practitioners of occupations or professions as part of a plan for economic development or attracting, encouraging or maintaining selected types of businesses or practitioners of selected occupations or professions. Such exemptions or reductions in occupation tax shall not be arbitrary or capricious.

(b)

Exemptions or reductions in occupation tax pursuant to subsection (a) may include but shall not be limited to the following:

(1)

Absolute dollar amount limitations on the total amount of tax, either by criterion or combination of criteria used for classification or for businesses and practitioners, provided that a jurisdiction which provides an absolute dollar amount limitation on the total amount of tax shall levy and collect such maximum tax only once on each business entity or practitioner even if a business or practitioner has more than one office or location within the jurisdiction;

(2)

Tax credits for the retention or creation of jobs, or for jobs of a specific description, including but not limited to entry level jobs or jobs with compensation of a specified range;

(3)

Tax credits for other taxes paid to the local government, including but not limited to ad valorem taxes;

(4)

A tax exemption or a lower rate of taxation for sales to customers outside the jurisdiction of the local government;

(5)

A credit or rebate to businesses or practitioners who paid occupation taxes in the previous year;

(6)

A limitation on the dollar or percentage amount of increase in tax from a base year to a subsequent year, provided that the limitation is made applicable to new businesses or practitioners by imputing the gross receipts, profitability ratio, or number of employees of the subsequent year to the base year in calculating tax for the base year, tax for the subsequent year, and the increase in tax; and

(7)

A credit or reduction as an adjustment for seasonal fluctuations in the number of employees, other fluctuations in the number of employees, increases or decreases in the number of employees, or temporary employees.

(Ord. No. 19-2006, § 1, 10-9-06)

State law reference

Similar provisions, O.C.G.A. § 48-13-10(f).