Learn what your tax
obligations are if you have businesses in these cities.
Most of these cities not only require you to pay the
corporate tax but also to withhold tax for those individuals
working for your company. See a list by city below.
The City Council today voted to
eliminate the much-maligned "tax on
jobs" by mid-2014, in keeping with a
campaign promise by Mayor Rahm
Emanuel. The so-called head tax,
paid by the city's larger companies,
will be cut in half to
$2-per-employee each month on July
1. It will be wiped out two years
later. "I want to applaud the mayor
and my colleagues for this," said
Ald. Thomas Tunney, 44th, a
restaurant owner who has campaign
for the tax's repeal since 1995,
before he was elected to the City
Council.
Tax Rate:
Corporations:
The rate is $1.05-$5.38 for every
$1,000 of gross receipts depending
on which "Tax Rate" you business
fall under (A-F).
See Section 21.41.
The minimum tax under Section 21.188
is $153.00 per year or any portion
of the year. There are numerous
other categories. Please go to the
New Business Tax Rates page
for more information.
Exemptions:
Yes. Starting on January 1, 2007, a
small business with $100,000 or less
of taxable and nontaxable gross
receipts within and without the
City, may qualify for a Small
Business Exemption (LAMC
Section 21.29). To obtain
the exemption, the Office of Finance
must receive a renewal form in a
timely manner. For further
information on the exemptions and
requirements to qualify, please
refer to our
exemption page.
Who Must Pay:
This section requires that every
person engaged in any trade,
calling, occupation, vocation,
profession or other means of
livelihood in the City of Los
Angeles, must obtain a Tax
Registration Certificate (TRC) and
pay the required business tax due,
specified in Sections 21.41 to21.199 of the
Business Tax Ordinance.
You are considered to be engaged in
business in the City of Los Angeles
when you physically perform work
within the City of Los Angeles for
seven (7) or more days per year.
Gross Receipt Tax:$0.75 per $1,000 to $5.60
per $1,000. This tax is applied based on the
industry your business is in and the amount of gorss
receipts. For example:
- Retail, Wholesale &
certain Services (NAICS Codes 42, 44, 45, 811, 812 &
813: -
0.075% ($0.75 per $1,000) for gross receipts between
$0-$1,000,000 -
0.100% (e.g. $1 per $1,000) for gross receipts
between $1,000,000-$2,500,000 -
0.135% (e.g. $1.35 per $1,000) for gross receipts
between $2,500,001 and $25,000,000 -
0.160% (e.g. $1.60 per $1,000) for gross receipts
over $25,000,000
- Manufacturing,
Transportation & Warehousing, Information,
Biotechnology, Clean Technology & Food Services
NAICS Codes 31, 32, 33, 48, 49, 51 & 722: -
0.125% ($1.25 per $1,000) for gross receipts between
$0-$1,000,000 -
0.205% (e.g. $2.05 per $1,000) for gross receipts
between $1,000,000-$2,500,000 -
0.370% (e.g. $3.70 per $1,000) for gross receipts
between $2,500,001 and $25,000,000 -
0.475% (e.g. $4.75 per $1,000) for gross receipts
over $25,000,000
All businesses with a
taxable San Francisco payroll expense greater than
$150,000 must pay the 1.5% Payroll Expense
Tax by the last day of February for the
prior calendar year (1 Jan - 31 Dec). This tax
is being phased between 2014-2018 and is being
replaced by the Gross Receipt Tax
which goes into effect January 2014.
The Gross Receipt Tax will affect businesses with
over $1,000,000 in revenues. You are required
to pay both taxes until the Payroll Expense Tax is
phased out.
The Gross Receipt Tax will not affect certain
businesses as follows:
1. Contracting with, acting through, or otherwise
using the services of, any investment advisor or
affiliate thereof which is not related entity.
2. Maintaining documents
of formation, incorporation, or registration within
the city.
3. Being an owner,
member, or other participant in an entity engaging
in business within the city chich is a pass-through
entity for federal cincome tax pruposes.
4. Having trustees or directors who meet or reside
within the city.
You must make estimated income tax payments throughout
the year if you expect to owe more than $100 for
individuals and partnerships or $250 for corporations.
Quarterly payments are due on or before April 30, June
30, September 30, and January 31.
Individuals are required to file as well:
- Every resident or part year resident of Grand Rapids
who has taxable income in a tax year must file a return.
- Every nonresident who has taxable income derived from
working or from sources inside the city limits must file
a return.
Filing:
Every corporation doing business in the city,
whether or not it has an office or place of business
in the city and whether or not it has net profits,
is required to file a return. Corporations cannot
choose to file and be taxed as partnerships.
However, nonprofit corporations who have applied for
and received approval for exemptions from federal
income tax, state and national banks, trust
companies, insurance companies, building and loan
institutions, savings and loan associations and
credit unions are exempt from the city income tax.
Subchapter "S" corporations doing business in the
City of Grand Rapids must file as a "C" corporation
for city income tax purposes.
Every partnership that conducted business in the City of
Grand Rapids, whether or not an office or place of
business was maintained in the city is required to file
an annual return. Syndicates, joint ventures, pools and
like organizations must also file an annual return.
If a partnership chooses to pay the taxes for the
partners, the partners are not required to file a return
as long as they have no other income subject to tax. The
partners must file an individual return if they have
taxable income other than the distributive share of net
profits from the partnership.
Withholding:
Every employer who does business in the City of Grand
Rapids is required to withhold Grand Rapids income tax.
This applies even if you do not maintain a location in
Grand Rapids.
All withholding tax payments are due on the last day of
the month after the reporting period. All Grand Rapids
income tax withholding payments should be sent to the
above address.
Filing: All corporations doing business
or located in the City of Muskegon
including sub-chapter S corporations
must file a corporate return.
Businesses must withhold taxes for
employees.
For partnerships
doing business or located in the
City of Muskegon, each partner in a
partnership is required to file an
individual return unless the tax is
paid by the partnership. The
partnership must file a partnership
return.
Withholding:
Every employer is required to
withhold who:
a.) has a location in the city, or
b.) who is doing business in the
city even though it has no location
in the city
Filing:
City of Pontiac
Income tax
returns are due
on or before
April 30, or
within 4 months
after the end of
your fiscal
year.
The estimated
tax for the
current year may
be paid in full
with the first
payment or in
four (4) equal
installments on
or before April
30, June30,
September 30,
and January 31
of the following
year.
For corporations
on a fiscal year
the payments are
due on before
the 4th
6th,
9th and 13th
month after the
beginning of
taxable fiscal
year.
Every
corporation
doing business
in the City of
Pontiac ,
whether or not
it has an office
or place of
business in the
city or net
profit, is
required to file
a City of
Pontiac Income
Tax Corporation
Return , Form
P-1120. Sub
Chapter S
corporations are
treated as C
corporations an
must file an
P-1120.
Non–profit
corporations,
which have
applied for and
received
approval for
exemptions from
Federal income
tax, shall not
be required to
file a return.
Every
partnership that
conducted
business in the
City of Pontiac
, whether or not
an office or
place of
business was
maintained in
the city is
required to file
a Partnership
Income Tax
Return (P-1065).
Filing:
City of Saginaw Income Tax returns
are due on or before April 30, or
within four months after the end of
your fiscal year.
The estimated tax for the current
year may be paid in full with the
first payment or in four (4) equal
installments on or before April 30,
June 30, September 30, and January
31 of the following year.
For corporations
on a fiscal year the payments are
due on or before the 4th, 6th, 9th
and 13th month after the beginning
of taxable fiscal year.
Every corporation
doing business in the City, whether
or not it has an office or place of
business in the city or a net
profit, is required to file a City
of Saginaw Income Tax Corporation
Return, Form S-1120.
Corporations cannot elect
to file and be taxed as partnerships
and visa versa. Sub-Chapter S
corporations are treated as C
corporations and must file a S-1120.
Non-profit corporations,
which have applied for and received
approval for exemption from the
Federal income tax, shall not be
required to file a Saginaw return
provided they submit, to the
Administrator, a copy of their
exemption approval from the Internal
Revenue Service. Such exemption from
the City's filing requirement will
continue in effect as long as their
Federal exemption is in effect.
The
ordinance also specifically
exempts state and national banks,
trust companies, insurance
companies, building and loan and
saving and loan associations, and
credit unions (either state
chartered or federal chartered).
Tax Rate:
(See more
at):
General
Corporation
Tax is
computed by
four
different
methods and
is imposed
at whichever
method
produces the
largest
amount of
tax.
Entire
net income
base = 8.85%
of "net
income
allocated to
New York
City"; OR
Total
Capital base
= .15% of
business and
investment
capital
allocated to
New York
City (for
cooperative
housing
corporations
that rate is
.04%), not
to exceed
$350,000 for
tax years in
or before
2008, or,
$1,000,000
for tax
years
beginning in
or after
2009; OR
Alternative
tax base (as
of January
1, 2010) =
8.85% of 15%
of net
income plus
the amount
of salaries
or other
compensation
paid to any
person,
including an
officer, who
at any time
during the
taxable year
owned more
than five
percent of
the
taxpayer’s
issued
capital
stock. OR
For tax
years
beginning in
or before
2008 a
minimum tax
of $300. If
a return is
filed for a
period of
less than
one year,
the tax is
still $300.
It cannot be
prorated.
For tax
years
beginning in
or after
2009, the
minimum tax
is based on
a
corporation’s
New York
City
receipts
computed as
follows:
Who is Subject
to This Tax?
Except for
certain
exemptions, the
General
Corporation Tax
is imposed on
all domestic and
foreign
corporations
that are engaged
in any of the
following four
activities in
New York City
during their
calendar or
fiscal year:
Doing
business;
Employing
capital;
Owning or
leasing
property, in a
corporate or
organized
capacity; or
Maintaining
an office.
New York City
does not
recognize
federal or New
York State "S
Corporation"
elections. S
Corporations are
subject to this
tax.
Furthermore,
beginning in
1996, an
association or
publicly traded
partnership that
is taxable as a
corporation for
federal income
tax purposes is
treated as a
corporation for
the purpose of
this tax.
If a corporation
is not subject
to the tax, but
it has an
officer,
employee, agent,
or other
representative
within the five
boroughs, it
must
nevertheless
file Form
NYC-245, the
Activities
Report for
Corporations.
Who is Exempt
from the Tax?
The instructions
to Forms NYC-3L
and 4S explain
in detail what
types of
corporations are
exempt from the
General
Corporation Tax:
- Dormant
corporations, which
at no time during
the taxable year
engaged in any
activity or held
title to real
property located in
New York City;
- Corporations
subject to the New
York City Banking
Corporation Tax or
Utility Tax, except
vendors of utility
services which are
subject to the
General Corporation
Tax;
- Corporations
organized
exclusively for the
purpose of holding
title to property as
described in
Sections 501(c)(2)
or (25) of the
Internal Revenue
Code;
- Insurance
Corporations;
- Nonstock
not-for-profit
companies that have
been granted an
exemption by the New
York City Department
of Finance; and
- Limited profit
housing and housing
development fund
companies organized
and operating under
articles 2 and 11,
respectively, of the
Private Housing
Finance Law.
Estimated
Tax: If the
corporation can
reasonably
expect its tax
to exceed $1,000
for the taxable
year, it must
file Form
NYC-400
(Declaration of
Estimated Tax)
and pay the
estimated tax.
Estimated tax
can also be paid
in installments.
A payment of 25
percent of the
tax liability
for the
preceding year
is required as
the first
installment of
estimated tax
for the current
year.
Properly
estimated tax
must be either
1) not less than
90 percent of
the tax that is
finally
determined, or
2) not less than
the tax for the
preceding
taxable year.
TaxRate:
The City of Bowling Green has a flat
ratetax
of 2.00%. Prior to 1/1/2011, the
rate
was 1.92%
Filing:
The Bowling Green
tax
forms (Form R, Declaration of Estimated
IncomeTax)
should be used by individuals, partnerships, corporations
and any other entity having
incometaxable
to this municipality. Receipt of forms indicates an
obligation to which you must respond.
Unless the
tax
was
withheld by a Bowling Green employer:
Residents must file on all
taxable
income, wherever earned.
Part-year residents must file on all
taxable
income earned during the period of their
Bowling Green residency and should pro-rate
income, expenses and credits accordingly.
Nonresidents must file on all
taxable
Bowling Green
income.
For all calendar year filers, returns are due
April 15. (For 2011 returns, the due date is
April 17, 2012 due to a Federal holiday) If the
return is made for a fiscal year or any period
of less than a year, the return shall be filed
within three and one half (3 1/2) months
from the end of each fiscal year or other
period.
You will
normally
have to
remit
two
types of
city
taxes:
the net
profits
tax and
(if you
have
employees)
the
employee
withholding
tax.
Filing:
The
first is
the tax
due on
profits
of your
business,
whether
your
business
is a
sole
proprietorship,
corporation
or
partnership.
Incidentally,
all the
cities
whose
taxes
are
administered
by
Columbus
tax the
net
profits
earned
within
each
city by
S-corporations
at the
corporate
level.
As such,
the
individual
shareholders
of
S-corps
are not
taxed.
Columbus
and
Harrisburg
require
partnerships
and the
limited
liability
companies
(LLC's)
to file
and
remit at
the
business
level on
behalf
of all
partners.
All
businesses,
with the
exception
of sole
proprietorships,
file
their
city
taxes
using
Form
BR-25.
Additional
information
on the
net
profits
tax for
businesses
other
than
sole
proprietorships
is
available
in the
instructions
for the
BR-25.
Sole
proprietorships
file by
reporting
their
Federal
Schedule
C income
on the
proprietor's
individual
city
return
(Form
IR-22
or, if
reporting
tax to
more
than two
cities,
Form
IR-25).
Additional
information
is
available
in the
instructions
for the
IR-22 or
IR-25.
Click on
Tax
Forms
to view
and
download
the
IR-22,
IR-25 or
the
BR-25
and the
instructions
to each.
You will
need
Adobe
Acrobat
to view
the
download.
If you
don't
have
Adobe
Acrobat,
you can
download
it free
at
https://www.adobe.com.
To remit
the
second
type of
tax, the
tax
withheld
from
your
employees'
wages,
you will
need to
establish
a
withholding
account
with us.
You do
this by
filing a
Form
IT-47,
which is
a simple
questionnaire.
Employers
are
liable
for all
city
withholding
taxes
that
should
have
been
withheld
from
their
employee's
wages
EVEN if
those
taxes
were
not, in
fact,
withheld.
Because
of this
obligation,
you'll
want to
make
sure you
set-up
your
employer
withholding
account
as soon
as you
hire
employees.
You can
call
(614)
645-7370
to
request
to have
a copy
of the
IT-47
mailed
to you
or click
on
Tax
Forms
to view
and
download
Form
IT-47.
Residents:
3.9280% (.03928)
Non-Residents:
3.4985%
(.034985) Corporations:
1.415
mills on gross
receipts and
6.45% on taxable
net income
On May 1, 2012,
the BPT will be
renamed the
Business Income
and Receipts
Tax. Beginning
in 2014,
businesses will
be able to take
an exclusion of
$50,000 that
will increase
over the
following years
to $100,000 in
2016.
Filing:
Every
individual,
partnership,
association and
corporation
engaged in a
business,
profession or
other activity
for profit
within the City
of Philadelphia
must file a
Business
Privilege Tax
Return, whether
or not they
earned a profit
during the
preceding year.
Rental
activities are
usually
considered to be
business
activities.
Every estate or
trust, (whether
the fiduciary is
an individual or
a corporation)
must file a
Business
Privilege Tax
Return if the
estate or trust
is engaged in
any business or
activity for
profit within
the City of
Philadelphia.
The Business
Privilege Tax is
based on both
gross receipts
and net income.
Both parts must
be filed.
Returns for this
tax are due by
April 15.
If you maintain
a Business
Privilege
License but do
not actively
engage in
business, you
must file the
Business
Privilege Tax
return and
indicate that no
business
occurred. If you
do not file a
return, you will
receive a
non-filer notice
and court costs
could be
imposed.