Business tax rate reductions—Local enterprise zones.
Riverside Municipal Code § 5.04.306
in effect5.04.306 - Business tax rate reductions—Local enterprise zones.
A. Notwithstanding anything to the contrary in this chapter, the business taxes to be paid by those new industrial or commercial developments commencing business in the City on or after the establishment of a local enterprise zone by resolution of the City Council for the area encompassing said business, excluding retail firms, creating at least five new permanent jobs and by those existing industrial or commercial developments located within said local enterprise zone, excluding retail firms, which have expanded after the designation of said local enterprise zone and which expansion results in an increase of ten percent in the number of permanent jobs for that business at that location subject to a minimum increase of five additional jobs, shall be reduced for a three-year period in accordance with the following schedule; provided, however, that each such business seeking to qualify for the reduction will be required to add value to the existing assessed valuation of the subject property by investing at least $500,000.00 over a five-year period in new construction and/or tenant improvements; and further provided that the reduction for those existing industrial or commercial developments which are expanding shall be limited to that portion of the business tax attributable to such expansion and not to the existing development: by 75 percent in the first year following the opening of a new business or the expansion of an existing business; by 50 percent in the second year; and by 25 percent in the third year. No reductions shall be granted in the fourth or any following year.
B. To permit the reduction as above provided, the person registering for the certificate must submit a verified statement in writing to the Finance Department at City Hall upon a form provided by the tax collector claiming the reduction and with such supporting documentation as may be required by the tax collector to establish the applicability of the provisions of this section.
C. "First year" as used in this section means for a new industrial or commercial development, the 12-month period immediately following the date of commencement of business at the location for which the reduction in taxes is claimed; and for the expansion of an existing business, the next tax year immediately following the date the required number of additional employees report to work at the location for which a claim is filed.
D. "Retail firm" as used in this section means a firm or business which derives 50 percent or more of its gross receipts from direct and final sales of goods or services to the general public.
E. "Local enterprise zone" means those economically depressed areas of the City so designated as a local enterprise zone from time to time by resolution of the City Council, the boundaries of which are specifically described in said resolution.
(Ord. 6168 § 2, 1994)
Source: City of Riverside, California, Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/ca/riverside/codes/code_of_ordinances?nodeId=PTIICOOR_TIT5BU_CH5.04TALIRE_5.04.306BUTARAREOCENZOFetched: 11/1/2026