§ 9-1-18. Beginner's license when tax is based on gross receipts.

(a)

Every person beginning a business which is subject to a license tax under the provisions of this chapter based in whole or in part on gross receipts shall estimate the amount of the gross receipts that he will receive between the date of beginning business and the end of the then current license year, and the license tax for the current year shall be computed upon that estimate, according to the provisions of this section, except as provided in subsection (f).

(b)

For the first calendar year of operation of the business (the then current license year), the license tax shall be at the applicable amount, based upon estimated gross receipts for that year, as follows:

(1)

if the estimated gross receipts for the first year are less than $100,000, $0;

(2)

if the estimated gross receipts for the first year are greater than or equal to $100,000, but less than $2,000,000, $50; or

(3)

if the estimated gross receipts for the first year are greater than or equal to $2,000,000, an amount as determined at the applicable rate.

(c)

For the second calendar year of the operation of the business:

(1)

if the actual gross receipts for the previous year (the first calendar year of operation of the business) were less than $2,000,000, and the estimated gross receipts for that previous year were less than $2,000,000, the license tax shall be:

(A)

if the actual gross receipts for the previous year were less than$10,000, $0;

(B)

if the actual gross receipts for the previous year were at least $10,000, but less than $100,000, $50; or

(C)

if the actual gross receipts for the previous year were $100,000 or greater, an amount as determined at the applicable rate; and

(2)

if the actual gross receipts for the previous year (the first calendar year of operation of the business) were less than $2,000,000, but the estimated gross receipts for that previous year were greater than or equal to $2,000,000, the license tax shall be as follows, less the payment made on the prior year estimate excluding the $50 flat fee component of the tax on the prior year estimate:

(A)

if the actual gross receipts for the previous year were less than$10,000, $0;

(B)

if the actual gross receipts for the previous year were at least $10,000, but less than $100,000, $50; or

(C)

if the actual gross receipts for the previous year were $100,000 or greater, an amount as determined at the applicable rate; and

(3)

if the actual gross receipts for the previous year (the first calendar year of operation of the business) were greater than or equal to $2,000,000, the license tax shall be the total of:

(A)

an amount determined at the applicable rate, based upon actual gross receipts for the previous year; and

(B)

an amount determined, based upon estimated gross receipts for the second calendar year of operation of the business, as follows:

(i)

if such gross receipts are estimated to be less than $10,000, $0;

(ii)

if such gross receipts are estimated to be at least $10,000, but less than $100,000, $50; or

(iii)

if such gross receipts are estimated to be $100,000 or greater, an amount as determined at the applicable rate; and

all businesses under this subsection (c)(3) shall be subject to an adjustment for the license tax assessed in subsection (b) of this section.

(d)

For the third and subsequent calendar years of the operation of the business, the license tax shall be based upon actual gross receipts for the immediately previous year, as follows:

(1)

if the actual gross receipts for the immediately previous year were less than $10,000, $0;

(2)

if the actual gross receipts for the immediately previous year were at least $10,000, but less than $100,000, $50; or

(3)

if the actual gross receipts for the immediately previous year were $100,000 or greater, an amount as determined at the applicable rate; and

for the third calendar year of the operation of the business only, all businesses that were assessed a license tax based upon estimated gross receipts under subsection (c)(3)(B) of this section shall be subject to an adjustment for that license tax assessed.

(e)

Whenever a license tax is so computed upon estimated gross receipts of greater than $2,000,000, any erroneous estimate shall be subject to correction. In the case of an underestimate, the director shall assess the person with any additional license tax found to be due after the close of the current license year, and, in case of an overestimate, the licensee shall be entitled to a credit upon his license taxes payable the following year.

(f)

The provisions of this section shall not apply to the following business tax categories: renting by owners of dwelling units or commercial establishments, contractors, wholesale merchants, amusements, public utilities, and regulatory activities. (Code 1963, Sec. 20-12; Ord. No. 3834, 11/18/95, Sec. 2; Ord. No. 4408, 6/21/05, Sec. 1)