1	Business License Workshop
2	Introduction Getting to know us It is the goal of Local Government Corporation Corporation (LGC) to be an honest, straight-forward business, faithful to our customers and faithful to our employees. -LGC General Policy Manual
3	Introduction What’s in store for the class? I. Changes on Business License Tax Act Form II. Different Scenarios III. Selection Process for Which Form to Use IV. Computing State Annual Form (BUS402) V. Printing Class 3 Forms VI. Changes on Next Business License Release
4	I. Changes on Business License Tax Act Form A. Goes into effect July 1st for Class 3
5	"B" B. Major Changes 1. Minimum tax deduction credit is taken before the local / state split. This is on line 6b (previously it was line 8a).
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7	"B" B. Major Changes 2. State gets a portion of the $15 minimum penalty on tax
8	"B" B. Major Changes 2a. Look at line 9d. If the license is delinquent, on this line you will calculate the state and local percentage of the total tax liability to determine what percent of penalty goes to local and state.
9	"To do this" To do this, use the amounts on 9c: Local percentage = local amount divided by the sum of the local and state amount State percentage = state amount divided by the sum of the local and state amount Use these percentages to calculate the local / state amounts of penalty for line 10a and 10b. See page 5a for manual calculations
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12	"2b" 2b. Two Special Situations If the minimum tax deduction wipes out the business tax due (6c is zero), the $15 minimum penalty on tax will be split 85% local and 15% state. See page 7a for manual calculations
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15	"If the personal property tax..." If the personal property tax wipes out the local tax liability (9a is zero), the state gets 100% of the minimum penalty on tax See page 8a for manual calculations
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17	II. Different Scenarios Using the LGC software to compute different scenarios
18	"A" A. Split Form (Public Chapter 856, Acts 2002) See page 10a and 10b for manual calculations
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22	"B" B. Calculation method using form prior to 7/1/2004 See page 11a for manual calculations
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24	III. Selection Process for Which Form to Use The new calculation method must be used for all Class 3 businesses and forward. However, LGC has provided a way to use the old calculation method. Run freestanding scl BLF240A.
25	"Some have asked whether the..." Some have asked whether the old forms could be used to achieve the same totals as the new form. The change on line 6b will make the totals from the two forms different.
26	"The State has not made..." The State has not made a definitive decision on whether to use the old form or new form for delinquent businesses.
27	"If the old form is..." If the old form is used, the local entity gets to keep the full minimum penalty (line 10a local). See page 14a for manual calculations
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29	IV. Computing State Annual Form (BUS402) Using LGC software to compute the new tax amounts See page 15a and 15b for manual calculations
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32	IV. Computing State Annual Form (BUS402) Using LGC software to compute the new tax amounts using Business Tax Act form prior to 7/1/2004 See page 17a for manual calculations
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35	IV. Computing State Annual Form (BUS402) More examples See pages 20a, b, and c for manual calculations.
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42	V. Printing Class 3 Notices
43	VI. Changes on the Next Business License Release (due late fall/early winter) Per Audit, maintenance to an existing license cannot be done. Maintenance can only be used if a license has been placed on hold and it needs to be paid and printed. Per Audit, delete license is no longer allowed. A license has to be voided. The G/L Posting reverses entries when a license is voided (if the G/L interface is being used). Voided Business License report Business Class History report Batch delinquent forms Daily Business Receipts report breaks down the Local/State portion of tax and shows the voids. Old form calculation method will be added to the menu (currently, you have to run BLF240A)
44	"Thank You" Thank You!