General Assembly OKs military waivers

The Georgia General Assembly approved two tax or administrative measures that are favorable to members of the military and their spouses during the final days of the legislative session.

HB 821, the “Military Spouses and Veterans Licensure Act” allows military spouses and servicemembers who have recently left the military to practice a state-licensed profession before a permanent license is issued. The professional licensing board for each profession is supposed to adopt rules before July 2017 to grant temporary or expedited licenses to these individuals. This should help military families earn income while their permanent license is pending. This affects such professions as psychologists, architects, and accountants.  The City of Decatur, like other local governments in Georgia, normally requires a state-licensed professional to provide proof of their state license before a local business license is issued.  Decatur would honor any temporary or expedited license issued to individuals in these circumstances.

HB 991, the “Returning Heroes Act,” is intended to forgive tax penalties on troops who are deployed while the taxes become past due.  Both bills must be signed by Governor Deal in order to become law.

Decatur bills 900 businesses

Decatur has invoiced nearly 900 local businesses for business license renewal fees for 2016. This is in addition to nearly 300 lawyers who were invoiced a month earlier. These occupation taxes can be paid online at decaturgatax.com. This website allows for payments by any major credit card, PayPal, or e-check with no extra fees.  If you own a business or practice a profession within Decatur's city limits and you have not received your invoice, please call 404-370-4100. Revenues from occupation taxes are used to provide quality services to the community.

State urges tax compliance for Airbnb rentals

Georgia lawmakers are recommending that state taxes be paid when Airbnb and similar rentals exceed 15 days.  In Decatur, this recommendation may be a moot point. Decatur’s unified development ordinance limits lodging at “bed and breakfasts” to no more than 14 consecutive nights.

That being said, homeowners who rent out rooms or accessory dwellings still have other administrative requirements to meet depending on their exact circumstances. For example, if a person in Decatur lives in a home and intends to rent out one or more of their guest rooms on a recurring basis for the purposes of making rental income, my office would require that person to obtain a home-based business license (after he or she has obtained zoning/use approval from our Planning or DEC departments), and the person may also be required to remit hotel/motel excise taxes to our city clerk.

Decatur wins award for business license website

From left to right, Calvin Rhodes (chief information officer, State of Georgia), Ryan Wilson (VC3), Claire Miller (Children & Youth Services and Decatur Technology Committee), Russ Madison (Revenue Division & Technology Committee), and Shaun Shabazz (Revenue Division).

Decatur has received an Innovation Showcase 2015 award from the Georgia Technology Authority for two projects including the City’s business license renewal website at www.decaturgatax.com/BusinessLicense. The award was presented during the annual Georgia Digital Government Summit on Sept. 22.

The story behind the award is that the City of Decatur Revenue Division needed a way to make the license renewal process quick and easy for 1,700 business owners. The division looked to technology, and its online business license project culminated in the fall of 2013 with the launch of the website in partnership with Sturgis Web Services and Paypal. The website allows businesses to renew their license online without having to mail a paper check. The website also enables businesses to print their own license if they choose, after the payment has been applied to their account. Payments can be made by credit card or echeck with no additional fees charged to the business. The website was optimized for mobile devices in 2014.

Prior to the new website, a business could renew its business license in Decatur only by mailing a check along with notarized immigration affidavits or by physically taking printed materials to City Hall from 8 a.m. to 5 p.m. on weekdays. Businesses usually had to wait 7-10 business days to receive new licenses in the mail.

In addition, data about business licenses was available only internally. Businesses wanting information about their own records had to visit, call, fax or email the city’s Revenue Division. Customers had no easy way to access information about businesses they patronize, and anyone who wanted to know if a business was operating with a current, valid business license had to contact the city or submit an open records request. Depending on what they wanted to know – such as the business owner’s name and contact information – additional research may have been required by staff. Other city departments had to contact the Revenue Division if they needed information about a business.

Information about the other Georgia Technology Authority award winners and their projects can be found at http://gta.georgia.gov/technology-innovation-showcase.

Business license officials attend national conference in Savannah

City and county employees from across the country attended the 31st annual conference of the National Bureau of Regulatory & Revenue Officials last week. I had the opportunity to attend along with Shaun Shabazz from our office. The conference was in Savannah.

Topics included an update on case law concerning business licensing and occupational taxation, the possibility of centralizing revenue collection at the state level rather than the local level in some states, a discussion of newer business models such as Uber and Airbnb, business license best practices, and the regulation of sexually-oriented businesses (adult entertainment).

Attending conferences like this is an important component in preparing ourselves as city employees for the growing number and variety of businesses in Decatur. It also gave us the chance to network with professionals who are focused on business licensing full-time. I met several officials who I will call upon in the future as we adapt to an evolving legal and business landscape.

Last chance to renew business license without penalty

The grace period for late business license renewal payments in Decatur for 2015 is expiring. A 10 percent penalty and 1 percent interest per month will accrue on unpaid balances after Apr. 30, 2015.

All 2014 business licenses in Decatur expired on January 30, 2015. If a business has not paid for its 2015 license and is still open in Decatur, that means that the business is operating without a business license.

If your business has closed or moved since 2014, please let us know to update our records and prevent escalated collection activities which will begin in May. If you need any assistance, please call the business license office at 404-370-4100.

10 business days until occupation taxes become delinquent

All 2014 business licenses in Decatur expired on January 30, 2015. If a business has not paid for its 2015 license and is still open in Decatur, that means that that business is operating without a business license. Please remit your occupational tax payment (and immigration-related documents if applicable) within the next 10 days to renew your 2015 license. A grace period during which no late fees accrued expires at the end of this month.  A 10 percent penalty and 1 percent interest per month will accrue on unpaid balances after Apr. 30, 2015.

If your business has closed or moved since 2014, please let us know to update our records and prevent collection activities. If you need any assistance, please call the business license office at 404-370-4100.

10 days until business license renewal deadline

The deadline for businesses in Decatur to renew their business license for 2015 is January 31. Renewal invoices were mailed in November. You can renew in person at 509 North McDonough Street; by mail to P.O. Box 220, Decatur, GA 30031; or online through www.decaturgatax.com after clicking on Occupation Tax on the left side of the screen.

In addition to payment of the occupational tax, we may need some additional paperwork in order to renew a license. If the business owner is a U.S. citizen and has already filed a SAVE affidavit with Decatur, you are not required to re-file a SAVE affidavit during renewal. If the business has 10 or less employees and has already filed an E-Verify affidavit with Decatur, you are not required to re-file an E-Verify affidavit. Non-citizens need to file SAVE affidavits annually and businesses with over 10 employees need to file E-Verify numbers annually in order to renew their license.

If you received a renewal invoice but your business has moved or closed, please let us know so we can settle and close your account with our office.

Your expiring business license

Business licenses in Decatur show an expiration date of Dec. 31, 2014. However, you have until January 31 to renew your license for 2015 without penalty. That being said, if you think you will need an unexpired business license (also known as an occupation tax certificate) during the month of January in order to obtain a business loan, business checking account, or to protect yourself in the event of legal claims by customers or employees, you may want to renew early.

Renewal notices/invoices were mailed in November. You can renew in person at 509 North McDonough Street; by mail to P.O. Box 220, Decatur, GA 30031; or online through www.decaturgatax.com after clicking on Occupation Tax on the left side of the screen.

Payment of the occupation tax may or may not be the only thing we need in order to renew your license.  Non-citizens need to file SAVE affidavits annually and businesses with over 10 employees need to file E-Verify numbers annually in order to renew their license.  Affidavits can be submitted with your paper renewal or can be uploaded if you're renewing online.

6 percent of Decatur businesses renewed online

From October 2013 through June 2014, 6 percent of businesses renewed their Decatur license by paying their occupation tax online. Of the 1,485 businesses that paid occupation taxes during that time period, 87 of them used our website at www.decaturgatax.com/businesslicense.

That is already a higher rate of web payments than we receive for property taxes (which is about 2 percent of payments made), even though there is more awareness of our property tax website since it has been available for four years. This fiscal year we anticipate a higher percentage of online business license renewals because of 1) increased marketing and awareness of the website, 2) the affidavit upload field on the website is no longer a required field, and 3) we are having some upgrades made to the website.

Attorneys will receive their annual occupation tax bill at the end of this month, and businesses will receive their license renewal bills later in November.

Changes in filing requirements make online renewal easier for most businesses

For the past few years, businesses have been required to submit two immigration-related affidavits annually when they renewed their business license per state law. As I wrote about this summer, those requirements have been relaxed.  Now only certain businesses will be required to refile these affidavits under specific circumstances as follows:

In other words, businesses owned by U.S. citizens with 10 or fewer employees who have already filed their paperwork in past years are exempt from re-filing.  This is great news for businesses that want to renew their license online (http://decaturgatax.com/businesslicense) in Decatur because it means they will be able to do it without having to upload affidavits. The upload box on our renewal website is now an optional field. All we will need is the business's telephone number, quantity of employees, and your online payment. There are no convenience fees, surcharges, or markups.

New businesses still need to file both affidavits with their license application.

Filing requirements relaxed for businesses

In recent years, businesses renewing their business licenses in Georgia have been required to submit two affidavits with their renewal: 1) A SAVE affidavit affirming that the renewal applicant has legal status to work in the U.S., and 2) an E-Verify affidavit indicating whether or not the business is required to participate in the federal E-Verify program based on that business’s number of employees.

State Senate Bill 160 relaxed that standard. Now, as long as the business renewal applicant is a U.S. citizen who has already filed a valid SAVE affidavit previously, that applicant is not required to re-file a SAVE affidavit with their renewal. Legal permanent residents and qualified aliens will continue to be required to submit a SAVE affidavit with their renewal. Businesses that do not comply with this requirement will not receive a business license.

 Businesses with less than 10 employees that have already filed an E-Verify affidavit are no longer required to submit an E-Verify affidavit with their renewal either. Businesses with 10 or more employees are required to provide their E-Verify number annually with their renewal. Businesses that do not comply with this requirement will be reported to the State.

 New business applicants need to complete both affidavits.

When we send renewal notices to local businesses this fall, we plan to send invoices along with blank affidavits if our records show that your business still needs to file one or both affidavits. If our records indicate that you are exempt from filing based on the criteria above, we’ll just send you an invoice. If your business has experienced a change in ownership or has grown beyond 10 employees within the past year, please call us at 404-370-4100 as those changes will affect your filing requirements.

Business license renewal deadline Jan. 31

Businesses in Decatur should pay their annual occupational tax by tomorrow. There will be a lengthy grace period for payments during which no penalties or interest will be charged, but businesses should renew by the deadline in order to maintain a valid license.

You can come to City Hall to renew, or you can mail in your renewal materials with the return envelope we enclosed with the invoice we sent you in November.

If you prefer to pay online, go to this site. For the year, select 2014 (except for lawyers, who should select 2013 instead). For the “business name,” enter your business's name it actually appears on your bill. Once you’ve found your record, click “renew” to pay. You'll be prompted to upload your notarized and completed immigration-related affidavits.

Paypal is our payment gateway, but you do not have to have a Paypal account to pay online. You'll want to check out as a guest, then Paypal will give you the option of selecting which type of credit card you want to use.  If you run into any difficulties online, please call us at 404-370-4100 and we'll try troubleshooting it.

Decatur's occupation taxes are levied on persons, partnerships, corporations, or other entities operating or engaging in an occupation, profession, or business within the city limits of Decatur. The City of Decatur uses profitability ratios to assign tax rates to six different classes of business ranging from $195 to $485 annually.

Decatur architects lead the way

Business license for a local architect

Now that the deadline for local businesses to renew their licenses for 2013 has passed, I would like to salute local architects doing business in the City of Decatur, who have the highest rate of occupation tax compliance of any profession or business type in the city so far for this year.  Our collection rate from architects is about 30 percent higher than other categories of businesses at this point—a testament to their attention to detail!

Businesses that are past due will receive courtesy notices shortly from the Revenue Division.

Most common business license fee in Decatur: $255

Although some businesses in Decatur are required to pay up to $485 per year for their business license, the majority of local businesses are charged a $230 occupational tax plus a $25 administrative fee as “Class 2” businesses under the city’s occupation tax ordinances.  About 245 of Decatur’s 510 local businesses (excluding home-based businesses, professionals such as doctors and architects, and insurance carriers) fall under Class 2, which includes most restaurants and many retailers.

The city’s occupational tax rates are based on profitability ratios.  The concept is that, generally speaking, businesses in lines of work that are more profitable are expected to pay a higher occupation tax rate that businesses that are less profitable.

More information on Decatur’s business licensing fees can be found on our website here.  The deadline for businesses to pay for a 2013 license is this Wednesday.

Business license renewals due in 10 days

Each business in Decatur must renew its business license for 2013 by paying its annual occupation tax bill by Jan. 31.  Bills were originally mailed on Nov. 30.

In addition to the renewal payment, state law also requires businesses to file two notarized immigration-related affidavits (SAVE and E-verify) annually with the city they receive their license from.  You can submit your payment and affidavits by mail to P.O. Box 220, Decatur, GA  30031 or in person at 509 N. McDonough St.

If you did not receive your bill, or if you received a bill but are no longer doing business in the city, please let us know.

Occupation tax bills in Decatur can range from $195 up to $460 annually.  Unlike many local governments in Georgia that tax businesses on their gross receipts, Decatur uses a simpler system of six flat rates.  Revenues from occupation taxes go to the City’s general fund, which is used to provide quality services to the public.

More information about business licensing in Decatur can be found on our website here.  Decatur’s business license rules apply to persons, partnerships, corporations and other entities including home-based businesses, state-licensed professionals, insurance carriers, and regular businesses.  City ordinances require local businesses to display their license in a place that’s easy to see.

Thanks to all our occupational taxpayers for choosing to do business in the City of Decatur!

Only 10 days left for business license payments

The deadline for local businesses to pay for their 2012 business license was Jan. 31. By law, businesses could still pay during a 90 day grace period following that deadline before penalties and interest are added.

Only 10 days of that grace period remain. Unpaid balances after Apr. 30 will be subject to a 10 percent penalty and 1 percent monthly interest.

Payments for occupational tax certificates may be made at City Hall or mailed to our office along with your invoice and notarized SAVE affidavit to:

City of Decatur
P.O. Box 220
Decatur, GA 30031

Failure to register for a renewal certificate will result in an automatic suspension of the business license.

Businesses no longer operating in the City of Decatur should notify us in writing so we can update our records.

Grace period expires for business license fees

City of Decatur business license payments were due by Jan. 31, but the City provided a 90-day grace period before late fees are added.

That grace period expires on April 30, and penalties will be applied against businesses that haven’t paid by the end of this month.

Also due with the payment is an affidavit verifying the business license applicant's legal status in the United States.  This is a new requirement for 2010 under the state law of Georgia.

For more information about business licensing in Decatur, please visit this page of the City’s website.

House bill could affect tax revenues

House Bill 1093 passed the Georgia House of Representatives yesterday. The bill would allow cities and counties to provide the state Department of Revenue with information about its licensed businesses. DOR would use this information to uncover businesses that are not complying with sales tax laws. From the Rome News-Tribune:

Legislation passed by the House on Wednesday would let the Georgia Department of Revenue compare local business license lists against its list of companies sending in sales tax collections.

A pilot program in four counties and their cities last year turned up hundreds of businesses that were either operating without remitting sales tax to the DOR or paying the sales tax without being registered locally.

House Bill 1093 would let local jurisdictions opt to send their lists to the state for crosschecking.

State Rep. Katie Dempsey, R-Rome, said the principle is sound.

“If everyone pays their fair share of taxes and those taxes are remitted as they should be, it will certainly reduce the shortfall we’re experiencing in this economic crisis,” Dempsey said.

The bill now moves to the Senate for consideration...

The current language of the bill makes participation optional for cities and counties. The governing authority, in our case the Decatur City Commission, could pass a resolution enabling my office to send a business report to the state.

However, the legislation does not authorize DOR to provide local governments with any of its tax information. State Democrats have argued that if DOR provided cities and counties with sales tax data, local officials could pursue businesses that have sales tax certificates but who don’t have business licenses. Earlier versions of the bill required cities and counties to provide the data, but this appears to be strictly optional.

Lawmakers point to a pilot program in four counties that showed potential tax revenue of $100 to $300 million. However, I believe that assumption is based on 100 percent participation by local governments, and not all local governments will agree to provide this information to DOR.

What are business personal property taxes?

In addition to real estate property tax, Decatur bills for taxes owed on personal property such as marine vessels, aircraft, business inventories, office or work equipment, furniture, or fixtures. In 2009, personal property tax bills were calculated by multiplying the assessed property value by the city’s combined millage rate of 32.935. Bills were mailed in October and were due by Dec. 21, 2009.

The property value is determined from a Taxpayer’s Report of Personal Property filed with the DeKalb County Board of Tax Assessors by the owner or the owner’s agent. If no report was filed, the value was based on an on-site audit or review of the previous year’s report or other related information.

State law requires personal property taxes to be based on the residency of the taxpayer and location of the personal property as of January 1 of each year. Personal property owned on that date must be reported and listed for assessment by March 1. Taxes must be paid regardless of any change in the residency of the taxpayer or disposition of the property later in the year.

If the DeKalb County Board of Tax Assessors tells us that you were a resident of the City of Decatur on January 1, or maintained a business located in the City of Decatur on that day, and you are liable to pay the full amount of personal property taxes as billed for the complete year.

Our office recently mailed out notices to individuals and businesses who owe personal property tax for 2009 and prior years. Interest will continue to accrue on unpaid balances by 1 percent monthly. If you received a late notice and have questions about your bill, please call us.