Taxes

BUSINESS PRIVILEGE/MERCANTILE TAX

A business privilege and/or mercantile license are required of all businesses located within the City along with a corresponding tax.  The tax rate is applied to gross volume after sales tax has been deducted.  Some businesses may require both licenses/taxes.  The breakdown is as follows:

Mercantile License - $10                                          Business Privilege License - $10

Mercantile Tax                                                          Business Privilege Tax
            Wholesale business - .0005%                                      Service business - .0015%
            Retail business - . 00075%                                          Rental business -  .0015%

EARNED INCOME TAX / DEDICATED EARNED INCOME TAX

A tax of 1.2% is imposed on:

1. City residents’ earned income, including salaries, wages, and other compensation
2. City resident’s net profits earned of businesses, professions, or other activities conducted in the City

Of the 1.2% rate, a half percent goes to the City while another half percent goes to the school district while the remaining 0.2% is considered dedicated earned income tax that also goes to the City.

EMERGENCY MUNICIPAL SERVICES TAX

An Emergency Municipal Services tax of $52 is imposed on all employees working within the City to support their use of services such as fire and police.  $47 of this tax is retained by the City, while $5 is given to the school district. Each employer is responsible for collecting this tax and making return to the Central Tax Bureau.

REAL ESTATE TAX

For 2008, the City has set the millage for real estate taxes at 42.44.  For example, owners of property with an assessed value of $20,000 would pay $848.80 in taxes, $60 more than last year
 
Taxes paid during April and May pay at a discount while those paid during June and July pay face value. After July, a ten percent (10%) penalty is imposed on the face value.

DEED TRANSFER TAX

A Deed Transfer Tax is imposed upon the transfer of real estate or interest in real estate located within City limits at a rate of .50%.

AMUSEMENT TAX

A 5% amusement tax is levied on the price of admission to any amusement within the city.  The person or enterprise conducting the amusement is responsible for collecting this tax and making return to the City.  When no fixed admission is charged, the tax shall be based on gross admissions collected and is to be paid by the person(s) conducting the amusement.  Examples of amusements include theaters, movie houses, sporting events,

PARKING LOT TAX

Owners of parking lots are subject to a 10% tax on their gross receipts of parking revenues.  This tax is due every quarter to the City.