I would like some information on the gross receipts tax in Berkeley,
CA.  Specifically, my company is headquartered in Los Angeles but we
are planning to open an R&D division in Berkeley.  I have heard that
one disadvantage of locating in Berkeley is the gross receipts tax.  I
would like to know how this tax is calculated, and if it matters that
the company would not be headquartered in Berkeley and the Berkeley
office would not be generating revenue directly.

I don't expect a detailed answer, but would be happy with a few
pointers to relevant sources of information.

Hello thepharcyde-ga,

Information on the gross receipts tax for businesses in Berkeley can
be found at:

http://www.ci.berkeley.ca.us/finance/businesslicense/grossreceipts.htm

The site includes the following description:

"Most businesses will report Gross Receipts, which are the total
amount of revenues or compensation received from your business
activities, sales, or performance of services, prior to making any
deductions for expenses. This includes businesses with the following
Tax Codes, found as pre-printed information at the top of your renewal
form:
B – C – E – G – L – P – R – RX – V – W – Z – RC – BM 

Gross Receipts includes all receipts, cash, rental payments, bonuses,
commissions, and property of any kind or nature; without any deduction
due to the costs of property sold, materials used, labor or services,
interest paid or payable, any losses, or other expenses."

----

The actual municipal code for the gross receipts tax is "Section
9.04.025 Gross receipts" and can be found here:

http://www.ci.berkeley.ca.us/bmc/Berkeley_Municipal_Code/Title_9/04/025.html

The code strikes me as ambiguous regarding your key question about HQ
location and where revenues are generated, so you may need to contact
a knowledgable human being about this.

-----

Some contacts for additional information:

-----

What if I am not sure if I need a business license or need assistance
in obtaining a license?

Please call The Office of Business License Review at (510) 981-7200 if
you have any questions concerning doing business in the City of
Berkeley or if you need assistance.  Customer Service Representatives
are available to answer your questions. You may email your request
and/or questions to BUSLIC@ci.berkeley.ca.us.

-----

Office of Economic Development
2118 Milvia Street, Suite 200, Berkeley, CA 94704
TEL: (510) 981-7530, TDD: (510) 981-6903,
Office Hours: Mon-Fri 8 a.m. to 5 p.m., Email:
ecodev@ci.berkeley.ca.us

Their web site at [ http://www.ci.berkeley.ca.us/oed/default.htm
]lists names and phone numbers of about a dozen individuals that you
can contact for additional information.

-----

Good luck in your venture, and I can't resist commenting that "The Far
Side" is my cubicle-neighbor's favorite cartoon.

If you need additional information from me, please make a "Request for
Clarification" before rating this answer.


search strategy:  Google search on:  Berkeley "gross receipts"

Good, thorough answer.