Key points:
• The Norcross City Council approved changes to business occupation taxes, allowing the city to collect more than double the revenue from local employers next fiscal year.
• Despite the increase, Norcross businesses are still paying some of the lowest business occupation taxes among surrounding cities. City officials argue that small to mid-sized businesses are minimally impacted.
• Council member Josh Bare said a significant amount of the city’s spending is on public safety, police, and infrastructure, all important things covered by taxes.
The Norcross City Council approved a roughly $1.8 million contract for road resurfacing on July 6 and brought the city’s business occupation taxes more in line with surrounding jurisdictions.
Council member Josh Bare said the 150% increase amounts to as little as a $250 increase on the average business’s annual bill, while speaking to a group of residents on July 8 at 45 South Cafe.
“We realized that we had gotten behind in terms of keeping up to date with how other cities were charging occupational business taxes,” Bare said. “You might have heard recently that a lot of the downtown merchants were getting concerned … but we’re not talking about a lot of money.”
Business tax changes
At the July 6 council meeting, elected officials unanimously approved a new tax schedule to take effect in fiscal year 2027, beginning Sept. 1. Even with the changes, Norcross’ tax on businesses will remain below nearly every surrounding jurisdiction, except the county seat.
The changes increase the base business occupation tax from $50 to $100 and revise employee-based tax categories, meaning larger employers will see greater increases than small, family-owned businesses.
The city’s finance department projects the update will increase annual business occupation tax revenue from about $425,000 this fiscal year to more than $1 million next year. A staff memo says the changes support city services and reduce reliance on property taxes.
While he initially questioned the tax hike in council discussion, Bare said the city needs the revenue while “driving down a dirt road with a whole bunch of dust.” Because of the city’s significant increase in its homestead exemption and other changes at the county and state level, Bare said, “the money’s got to come from somewhere to fill the budget.”
Two days after the vote, Bare said large employers in Norcross, like FedEx and Birchwood Foods, are paying lower tax than they would in unincorporated Gwinnett County and most surrounding cities.
“City staff are working really hard to make sure that everybody in the tax mix is paying a competitive, fair share,” he said.
Norcross paving, public safety
After receiving 12 bids on its annual paving plan, Norcross officials selected DCBC LLC as the low bidder to resurface 19 roadway segments around the city. The city’s ongoing pavement management program is a routine line item in the annual budget.
Some of the longest segments set for resurfacing are Lawrenceville Street NW, South Cemetery Street, Pride Place NW, Dogwood Circle, Wexford Drive, and Financial Drive NW.
A majority of the funding for the city’s ongoing pavement management program, or $1.5 million, comes from the 2023 Gwinnett County SPLOST program.
Another $608,000 came from the state’s Local Maintenance and Improvement Grant (LMIG) and Local Road Assistance (LRA) funding programs. Because the paving contract comes in at just under $1.8 million, Norcross has an extra $300,000.
In a recap of the early July meeting, city officials said the approved items “support long-term infrastructure investments, public safety, and financial stewardship.”
In other business, the council also:
- approved a $100,000 transfer from the city’s motor vehicle fund to help pay construction costs for the new Norcross Public Safety Building, which is expected to be finished later this summer. (State law allows revenue generated from the excise tax to be used for public safety facilities.)
- authorized staff to release a request for proposals, or RFP, for the city’s banking services. Staff said it’s considered best practice to check competitive pricing, customer service, and ensure access to modern banking technology.
