A business license is an occupation tax that is assessed and permits the permanent location of a business, trade or profession operating in the City of East Point. The occupation tax is also assessed for out-of-state businesses with no permanent location in Georgia. It is a tax levied by the City for revenue purposes and is not intended for regulatory purposes. Business License Brochure
The Business License & Occupational Tax is computed based on the number of employees (including business owner), annual gross receipts plus a minimum flat tax of $50.00 and an assessment of $75.00 administrative fee. Tax on gross receipts is based on the associated tax class for each $1,000.00 over $10,000.00 in annual gross receipts. Gross receipts calculation is capped at $3-million. There are six (6) tax classes that represent the Standard Industrial Classification (SIC) system for different types of professions. See the sample calculation below:
SIC Code = 81 (Legal Services)
Tax Class = 4
Gross Receipts = $500,000
Employees = 6 (2 Attorneys + 4 Support Staff)
Administrative Fee = $75.00
Flat Tax + Gross Receipts
$50.00 + $1.15 (490) = $613.50
$60.00 + $15.00 (4) = $120.00
Total = $808.50
Practitioners such as doctors, lawyers, accountants, etc. may choose to pay the occupation tax as stated above or pay a practitioner professional tax equal to $400.00 per practitioner + administrative fee + #employees. Using the same parameters above, the total tax would be $995.00.
Regulatory fees are assessed for those businesses or professions of occupations which require the City to perform an investigation or inspection to ensure public health safety or welfare prior to opening. This fee is in addition to the administrative fee, flat tax plus gross receipts and number of employees. Types of businesses that may be subject to a regulatory fee include but are not limited to: Tattoo Artist, Pawnbrokers, Home Daycare, Locksmiths, etc.