The Perryville City Council unanimously approved the second reading of an occupational license tax ordinance at a special meeting Monday night.
The ordinance creates a 1 percent tax on payroll and net profits for businesses operating in the city limits.
City Attorney Bill Stevens said the ordinance should go into affect Jan. 1.
Stevens redrafted a previous ordinance passed by the City Council to include the net profits levee and clarify some language with regard to how the payroll tax will be assessed.
City Clerk Mona Followell has projected $29,000 in revenue from the 1 percent payroll tax on about $2.9 million in taxable revenue in the city. Businesses now will have to withhold 1 percent of employee wages.
Followell said at a Dec. 4 meeting that county officials projected Perryville will bring in $300 from a net profits tax.