Roswell resolved a controversy over business license fees, for now. The city approved an occupational tax initiative this week that would keep rates at current levels.
City Council members approved a business occupational tax credit during a Monday meeting, meaning there will be no increase in 2021.
Business owners have worried about paying higher business occupational taxes during a year that’s challenged economically by the pandemic. The taxes are fees that companies pay to run their businesses in the city of Roswell.
City Finance Director Ryan Luckett said businesses will be billed the same amount in 2021 as they were in 2020. There could be increases in the subsequent years, he added.
The city planned to tweak its business occupational tax structure for 2021. During the summer, an official noticed a disparity in what large and small businesses paid the previous two years. For example, the tax rate for holding companies, real estate and rental firms decreased by half after 2018. The tax rate for other businesses such as restaurants remained the same.
Occupational tax bills are calculated using factors such as total gross receipts, deductions and the number of employees.
Roswell collects less money in business license fees than neighboring cities. A Roswell report showed that a restaurant with $1 million dollars in gross receipts and 19 employees would’ve had a $330 tax bill this year. The same business would’ve paid $1,499 in Johns Creek and $1,254 in Sandy Springs.
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