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<br />I <br /> <br />TUESDAY <br /> <br />JANUARY 11, 1983 <br /> <br />In continuing its consideration of a proposed new business license tax ordinance <br /> <br />and the public hearing thereon from its December 14th meeting, Council received <br /> <br />from City Manager Edmonds a description of the history of the City's license tax <br /> <br />ordinance development and enforcement as well as an estimate of the impact of the <br /> <br />State's revised statutes, applicable to locally-imposed business license taxes, <br /> <br />upon the City's income from this source. City Manager Edmonds noted, further, that <br /> <br />the proposed license tax ordinance, designed to comply with said revised statutes, <br /> <br />attempts to minimize the City's revenue loss by rolling back to the State's man- <br /> <br />dated maximum those present rates now in excess of said maximum; increasing the <br /> <br />present rates, if below the State maximum, to the State maximum or ceiling; and <br /> <br />requiring all businesses and/or individuals subject to licensing and taxing to be <br /> <br />so licensed and taxed. City Manager Edmonds also presented revisions to the pro- <br /> <br />posed ordinance, as introduced, to (1) classify direct sellers of products, generally <br /> <br />associated with the term "home occupations", as Commission Merchants, subject to a <br /> <br />license tax of 36~ per $100.00 of commission income; (2) to eliminate the probable <br /> <br />necessity (under the proposed ordinance, as introduced) of requiring more than one <br /> <br />license from said direct sellers; and (3) to eliminate the proposed $30.00 minimum <br /> <br />tax. Commission income was then described as being that which would be reported, <br /> <br />as a sole proprietorship, on Line 5 of Schedule C of IRS Form 1040. Mr. Mario <br /> <br />Brossi, Attorney for Government Relations of the Direct Selling Association, <br /> <br />Washington, D.C., appeared before Council and suggested that licensing and taxing <br /> <br />direct sellers, most of whom are only part-time active, might not be cost-effective; <br /> <br />that, although the City is permitted to license and levy taxes it is not compelled <br /> <br />so to do; that only those direct sellers or commission merchants whose incomes exceed <br /> <br />certain "threshold" levels be licensed and taxed; and (that) the profits of some <br /> <br />direct sellers and/or firms are not commissions. <br /> <br />Mr. John L. Gregory, III, <br />