Stonecrest, GA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Classification basis
- Major NAICS industry line
- Profitability class source
- IRS Statistics of Income data
- Review cycle
- Annual, by City Manager designee
- Tax formula
- Gross receipts + employee count
- Multi-activity business
- Taxed on dominant activity
- Public record
- Classification schedule filed with city clerk
Summary
Every business paying Stonecrest's occupation tax is classified by its dominant NAICS industry line and assigned to a profitability class taken from IRS Statistics of Income data. The City Manager's designee reviews profitability classes every year and can administratively reassign them, and the tax owed is calculated from gross receipts and employee count.
(a)For the purpose of this article, every person engaged in business requiring the payment of occupational taxes is classified in accordance to the major line of business, as defined in the North American Industry Classification System (NAICS), Office of Management and Budget; and profitability classes are assigned in accordance with Statistics of Income, Business Income Tax Returns, United States Treasury Department, Internal Revenue Service. The City Manager or his designee shall review assignment of businesses to profitability classes on an annual basis and shall administratively reassign businesses as necessary to the then most accurate profitability class.(b)Classifications by business profitability have been established by the City Council and are incorporated herein by reference and adopted for use in the application of this article. All separate businesses engaged in more than one business activity shall be classified on the basis of their dominant business activity at each location where business is done; ... (c)The occupation tax shall be determined by applying the business' gross receipts and number of employees to the business' profitability classification and rates established for each business type.(d)A copy of business classifications shall be maintained in the office of the city clerk and shall be available for inspection by all interested persons.
Full Breakdown
Sec. 15.2.16 of the Stonecrest Code ties every occupation tax bill to two things: the business's major NAICS industry line and a profitability class drawn from the U.S. Treasury's Statistics of Income data for that industry. The City Manager or a designee reviews profitability-class assignments annually and can administratively move a business to a more accurate class without a hearing. A business operating more than one line of activity at a single location is classified by its dominant activity there, not by a secondary line, except that a business whose dominant activity is legally tax-exempt is instead classified by its taxable subsidiary activity, if any.
Once classified, the tax itself is a straight calculation: the business's gross receipts and number of employees are applied to the profitability classification and rate table the City Council has adopted for that business type. The City Council's classification schedule is incorporated into the ordinance by reference and is kept on file in the office of the city clerk, open to inspection by any interested person. Because the classification drives the tax owed, a business that adds a second, larger line of work at the same address can be administratively reclassified the following year even without applying for a new business license.
Violations & Fines
Misreporting the gross receipts or employee counts used to compute the tax, or failing to cooperate with the City Manager's annual review of profitability classifications, can result in denial or revocation of the business occupation tax certificate under this chapter's certificate provisions. A business that disagrees with its assigned NAICS classification or profitability class may appeal in writing to the certificate review hearing officer under article XVI of this chapter.
Frequently Asked Questions
How does Stonecrest decide which profitability class a business is in?
What if my Stonecrest business does two different kinds of work at one address?
Can I see how Stonecrest classifies businesses like mine?
Sources & Official References
Other rules in Stonecrest
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