Wednesday, December 10, 2008

Ordinance No. 27763 Passed! (Huh?) City B&O Floor Raised!

Ordinance No. 27763 passed the city council last night. The ordinance increased the threshold for the B&O tax for businesses in the city limits to $72,500 annually. The Chamber worked with local businesses and economic development leaders to push for this increase.

While this is a positive outcome, eventually, the Chamber would like to see the entire B&O tax eliminated by 2020 for every business. The ordinance is written to increase the floor by $2,500 every year, without sunset.

Below is the vote tally for last night's passage:

Ordinance No. 27763
Amending Title 6A of the Municipal Code, relating to Business and Occupation
Tax, to increase the gross income threshold by $2,500 annually, effective
January 1, 2009.
Ayes: 8 Nays: 0 Absent: 1

The Chamber was a long time advocate of eliminating the City and State's B&O taxes. At this summer's City Council Government Performance and Finance Committee, the Chamber spoke out for reducing the B&O tax. The Chamber specifically suggested a gradualist approach so City services would not suffer harm. One of our suggested methods was to raise the floor, which is the choice enacted by the City Council.

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