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To request that the Chief Administrative Officer cause to be prepared a report on the impact of Ord. No. 2019-276, concerning the creation of a new business, profession, and occupation license tax category for technology businesses and a new license tax for such businesses.
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WHEREAS, Ordinance No. 2019-276 (hereinafter referred to as the "Ordinance"), introduced to the City Council on October 14, 2019, amends sections 26-872, concerning definitions related to license taxes, and 26-989, concerning licenses taxes for personal services businesses, of the Code of the City of Richmond (2020), as amended, and amends Chapter 26, Article XV, Division 2 of the Code of the City of Richmond (2020), as amended, by adding therein a new section numbered 26-1003.1, concerning the license tax for technology businesses, for the purpose of creating a new business, profession, and occupation license category called "technology business" and imposing a new license tax on such businesses; and
WHEREAS, the Ordinance further establishes (i) a license tax equal to $0.10 per $100 of gross receipts of the technology business for persons engaging in biotechnology, research and development, and information services; (ii) a license tax equal to $0.03 per $100 of gross receipts of the technology business for federal contractors engaged in research and development services, and (iii) a license tax equal to $0.03 per $100 of gross receipts of the technology business for persons engaged in computer services; and
WHEREAS, upon information and belief of the Council, the Ordinance, if adopted, may have an unknown fiscal impact, including the effect of increasing the tax rates of existing or new businesses currently classified in another category, which may fully or partially offset the imposition of a lower tax rate, or decreasing the tax rates of other such businesses; and
WHEREAS, the Council believes that it is in the best interests of the citizens of the Cit...
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