At the December 20, 2010 City of Greenwood Council meeting, council voted unanimously to make changes to the Business License Ordinance. The approval came after a public hearing in which no one spoke. These changes will impact all 2011 business license renewals.
First, the city is changing from the Standard Industrial Classification (SIC) to North American Industry Classification System (NAICS). The SIC has not been widely used since 1987. Changing to the 2007 NAICS will ensure the ability to properly classify businesses according to current gross profit margin data as available by the Internal Revenue Service. The change in classification system could possibly change the rate code that businesses are in. Additionally, in order for the city to remain "revenue neutral", it was necessary to institute a slight increase in all license rate fees. The base fee was increased by $10 and the "per thousand" rate was increased by $0.20 for businesses outside the city limits. Businesses inside the city limits have a 50% discount on the rate increase. New rates are now available on-line for inside city limits or outside city limits.
Second, the city determined that in order to ensure compliance with the business license ordinance proof of income at renewal will be required of all businesses inside the city limits. Businesses outside of the city limits will continue to be randomly audited. In order to allow enough time to meet this requirement, the due date for business license renewals has been extended until April 30 or the following business day (May 2, 2011) if the 30th falls on a weekend.
In order to ensure protection of financial information, returns sent in will be shredded in our office. Business owners may also bring the return to the finance office to be reviewed, but not retained by staff.
A detailed letter will accompany business license renewal forms that will be mailed in January. Questions regarding these changes can be directed to the Finance Director at 864-942-8416 or the Finance Office at 864-942-8420.