HomeMy WebLinkAboutRES-11-6763 (CITY'S BUSINESS TAX ORDINANCE)l
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RESOLUTION NO. 11-6763
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA ORDERING THE SUBMISSION TO
THE QUALIFIED VOTERS AT THE GENERAL MUNICIPAL
ELECTION ON TUESDAY NOVEMBER 8, 2011 AS CALLED BY CITY
COUNCIL RESOLUTION NO. 11-6750 OF AN ORDINANCE RELATING
TO A COMPREHENSIVE REORGANIZATION AND UPDATE OF THE
CITY'S BUSINESS LICENSE TAX ORDINANCE AND RESCINDING
RESOLUTION NO. 11-6758
Section 1. Recitals
A. Pursuant to Chapter 5.04 of the Hermosa Beach Municipal Code, the City
currently levies a Business Tax on businesses operating in Hermosa Beach. The tax structure has
not been changed since 1988.
B. In late 2010, the City Council established a Business License Tax Review
Committee and charged it with the task of reviewing and analyzing the Business Tax and making
recommendations to the City Council for possible modifications to the Tax. The Committee met
on many occasions over the course of seven months and took testimony from the public, including
both residents and business owners. The Committee developed a mission statement that
emphasized innovation and creativity in its approach and the goal of revising the Tax to advance
business development and job creation.
C. The Committee approached its task guided by these principles: The tax
structure should be:
Simple
Competitive with surrounding cities
Capped at a reasonable maximum
Applicable to all businesses
Reduced for high sales tax generating businesses
Easy to administer
11-6763
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D. The Committee presented its report to the City Council at the Council's
regular meeting of July 12, 2012. The Council accepted the report and desires to present the
Committee's proposed comprehensive tax restructuring with minor changes to the electorate for
approval consistent with the requirements of Proposition 218. The proposed tax structure will
increase the existing business tax on some businesses and reduce the tax for others.
E. The City Council of the City of Hermosa Beach desires to submit to the
voters at the November 8, 2011 election a question relating to approval of a comprehensive
reorganization and update of the City's Business License Tax Ordinance based substantially on the
report prepared by the Business License Tax Review Committee.
F. The proposed Ordinance attached hereto and incorporated herein by reference
as Attachment "A" (the "Ordinance") would implement these proposed revisions to the tax.
G. Under the provisions of the laws relating to general law cities in the State of
California, a General Municipal Election shall be held on November 8, 2011.
Section 2. The City Council of the City of Hermosa Beach, California, does hereby resolve,
declare, determine and order as follows:
A. The City Council finds and determines that each of the recitals set forth above
are true and correct.
B. That pursuant to the requirements of the laws of the State of California
relating to general law cities, there is called and ordered to be held in the City of Hermosa Beach,
California, on Tuesday, November 8, 2011, a General Municipal Election.
C. The City Council proposes to impose the general tax set forth in the
Ordinance, which is attached to this Resolution as Attachment A and incorporated herein by
reference, and will be presented to the voters on November 8, 2011 at the General Municipal
Election.
D. That the City Council, pursuant to its right and authority, by a two-thirds vote
of its membership, does order submitted to the voters at the General Municipal Election the
following question:
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116763
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Shall an ordinance be adopted as recommended by the Business
YES
❑
NO
❑
License Tax Review Committee, comprised of residents and business
owners, and a unanimous City Council to simplify, update and
restructure the City's business license tax Ordinance and offer
incentives for new businesses?
This question requires the approval of a majority of those casting votes.
0 E. That in all particulars not recited in this Resolution, the election shall be held
i and conducted as provided in Resolution No. 11-6750 and law for holding municipal elections.
12 F. That notice of the time and place of holding the election is given and the City
13 Clerk is authorized, instructed and directed to give further or additional notice of the election, in
14 11 time, form and manner as required by law.
15 I G. In the event that the Ordinance is approved by a majority vote of the electors
16 casting ballots on November 8, 2011, the business license tax shall be collected in accordance with
17 11 the revised rates in the same manner as the tax is currently collected, as set forth in Hermosa
is Beach Municipal Code Chapter 5.04 (Business License Tax).
19 Section 3. Upon the approval of the Ordinance by a majority vote of the electors voting
20 on the issue and the certification of the results of the November 8, 2011 election by the City
21 Council in the manner authorized by law, the Mayor and City Clerk are hereby authorized and
22 directed to attest to the approval of the Business License Tax amendment by a majority vote of the
23 H electors.
24 Section 4. Resolution No. 11-6758 is hereby rescinded.
25 Section 5. The deadlines established in Resolution No. 11-6760 for the filing of the City
26 Attorney's impartial analysis and direct arguments and in Resolution No. 11-6761 for the filing of
27 1 rebuttal arguments are hereby extended one week (to Tuesday, August 16, 2011 at 6 p.m. for
28 impartial analysis and direct arguments, and Friday, August 26, 2011 at 5 p.m. for rebuttal
3 11-6763
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rrguments) for only the proposed Ordinance attached hereto and incorporated herein by reference
is Attachment "A."
Section 6. The City Clerk is hereby directed to file a certified copy of this Resolution
with the Los Angeles Board of Supervisors and the Los Angeles County Registrar/Recorder.
Section 7. The City Clerk shall certify to the passage of this Resolution by a two-thirds
vote of the City Council and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hermosa
Beach at a special meeting held this 2nd day of August, 2011.
U
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST:
City Clerk
APPROVED.
I
City Attorney
FORM:
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11-6763
PROPOSED ORDINANCE OF MEASURE N
AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
ENACTING A COMPREHENSIVE RESTRUCTURING AND UPDATE OF
THE BUSINESS LICENSE TAX ORDINANCE
The People of the City of Hermosa Beach hereby ordain as follows:
.Section1. Section 5.04.200 of Title 5, Chapter 5.04 of the Hermosa Beach
Municipal Code is amended in its entirety to read as follows:
Section 5.04.200 Schedule of Business Taxes
t
A. Taxes.
Every person conducting business in the city shall pay a license tax as provided
below. The amount of the license tax or the method by which it is to be
computed is set forth in the Schedule of Taxes. Businesses with a fixed location
within the boundaries of the City other than bars and restaurants with alcohol
that close after 12:00 a.m. are exempt from business license taxation for the first
year the business is in operation but must nonetheless file a business license
application. The City reserves the right to require documentation of gross
receipts from all businesses taxed on a percentage of gross receipts. Businesses
shall be taxed in accordance with the following categories:
1. General businesses. All businesses not expressly identified elsewhere in
this Section, including but not limited to:
Private detective, watchman service with a fixed place of business in the city or
rendering a service within the city; loan company; and escrow company
Dancing studio, studio of music, music lessons, bridge lessons, art studio, swim
schools and nursery schools
Dance halls
Barbershops, manicuring, facial massage, beauty parlors, cosmetic skin treatment
and establishments where massage services are offered by an individual as an
incidental or accessory service and does not occupy more than 25% of the area of
the establishment. A licensed person shall be considered an employee for this tax
purpose if the employer does in fact withhold and pay federal income tax on said
employee, and in addition thereto, pay to the state, as the laws may be
applicable, unemployment and compensation insurance, and/or there is a
contractual agreement. Otherwise, said licensed person shall be considered an
independent contractor and shall pay the annual license tax for a licensed person
Auto or boat parking or storage lot except when this type of lot is part of and
associated with another business activity
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Confectionery, candy, popcorn concessions operated in the foyer or lobby of
theaters, places of amusements or public buildings
Advertising by means of searchlight, skylight, klieg light, portable flood light or
any other such lighting device, subject to special permit from Chief of Police
Bench advertising
Checkroom for storage of parcels or wearing apparel
Publishing a newspaper, newspaper agency
Special or seasonal sales, when not in connection with a fixed place of business
Laundry or similar business where the public may leave their wash to be done;
launderette, Laundromats or dry cleaning on the premises by individual machines,
where a charge is made through a coin -operated slot or on a flat fee basis;
coin -operated washer and dryer equipment not owned by the proprietor in
apartment houses, hotels, motels and other similar accommodations for dwelling,
sleeping or lodging
Auto wrecking and junk dealers subject to compliance with the requirements of
Chapter 5.60
Trained animal show
Bowling alleys subject to compliance with the requirements of Chapter 5.68
Health and culture establishments
New or used machinery
Selling or offering for sale stocks of machinery, goods, wares or merchandise
advertised as bankrupt, sheriffs, assignee's, trustee's, creditor's, receiver's or
special sale of damaged goods, subject to compliance with the requirements of
Chapter 5.60
Live theaters
Entertainment not in conjunction with a bar or restaurant serving alcoholic
beverages, subject to prior approval of a Conditional Use Permit
Motion picture production not operating from a fixed place of business in the
city, subject to compliance with the permit requirements of Section 12.28.130
Motion picture production
Pawnbrokers, subject to compliance with the requirements of Chapter 5.60
Pool and billiard parlors, subject to compliance with the licensing requirements
of Chapter 5.68
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Taxicabs and autos for hire, subject to compliance with Chapter 5.72
Tent shows, transient and other theatrical exhibitions of skill, physical and
mental strength or ability, art or science, subject to prior approval of a
Conditional Use Permit or a Special Permit issued pursuant to Section 12.12.070
Processions, parades, etc., in connection with any amusement or other enterprise
operated for profit, subject to prior approval of a Special Permit issued pursuant
to Section 12.12.070
Dating bureaus, compatibility matching services, counseling or advisory services
Motion picture theaters, subject to prior approval of a Conditional Use Permit
2. Auto/Boat Dealers/Manufacturers/Wholesale
Including but not limited to jobbers and secondhand dealers, new or used
Less than $3,000,000 in sales
Greater than $3,000,000 in sales
3. Gasoline service stations
4. Professional and semi-professional services with a fixed place of business in
the City, including but not limited to:
Attorneys, income tax agents, auditors, accountants, architects, engineers, real
estate brokers, chiropodists, dentists, opticians, optometrists, osteopaths,
physicians, surgeons, veterinarians and any other similar professions for which a
State license is required
Public stenographer, telephone services, employment agencies, advertising
agencies, public relations agencies, travel agencies, consultants not qualifying as
professional or semi-professional
Telephone soliciting office
A licensed person shall be considered an employee for this tax purpose if the
employer does in fact withhold and pay federal income tax on said employee, and
in addition thereto, pay to the state, as the laws may be applicable,
unemployment and compensation insurance, and/or there is a contractual
agreement. Otherwise, said licensed person shall be considered an independent
contractor and shall pay the annual license tax for a licensed person, except that
a licensed real estate salesman shall be considered an employee. Unlicensed real
estate canvassers shall be taxed to the broker as an employee under this section
and shall further be required to comply with the provisions of Classification F of
this section regulating the licensing of canvassers, solicitors, itinerant merchants,
salesmen and peddlers.
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
5. Lodging
Apartments, rental of residential property (owner occupied units are exempt)
Hotels, motels, care centers
Trailer and mobile home parks
6. Food and beverage:
Restaurant without alcohol
Bar and restaurant with alcohol closing before 12:00 a.m.
Bar and restaurant with alcohol, closing after 12:00 a.m. three days or less per
week (specific days must be identified in business tax certificate)
Bar and restaurant with alcohol, closing after 12:00 a.m. four days per week
(specific days must be identified in business tax certificate)
Bar and restaurant with alcohol, closing after 12:00 a.m. five days or more per
week (specific days must be identified in business tax certificate)
Food and/or beverage with drive through operation (maximum tax of $8,000.00)
The following holidays shall not be counted towards the number of days per
week limitations established above: Sunday evening preceding Martin Luther
Ding, Jr. Day and Presidents' Day; St. Patrick's Day; Cinco de Mayo; Sunday
evening preceding Memorial Day; Independence Day; Sunday evening preceding
Labor Day; Thanksgiving Day; day after Thanksgiving; Christmas; and New
Year's Eve.
All restaurant categories except restaurant without alcohol and restaurants with
beer and wine that close by 10:00 p.m. are subject to prior approval of a
conditional use permit. No tax refund is available should a restaurant with
alcohol reduce the number of days it is open after 12:00 a.m. An increase in the
number of days a restaurant is open after 12:00 a.m. will require payment of the
additional tax.
7. Retail
Less than $250,000 in sales
Greater than $250,000 in sales (maximum tax of $8,000)
All retail establishments not expressly listed in another category
Supermarkets, drug stores, liquor stores, off -sale alcohol
Off -sale alcohol establishments that close before 12:00 a.m. are eligible for a
$1,500 credit against license tax
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
8. Building Contractors
Contractors
Subcontractors
Owner builders who build any building or structure for the purpose of sale or as
rental units (three or more units)
Each general building or engineering contractor or owner builder shall furnish
the license collector with a list of all subcontractors on forms furnished by the
license collector prior to obtaining inspection of the work performed by such
subcontractors. It shall be the responsibility of every general building,
engineering contractor and owner builder to require subcontractors under its
control or direction to obtain a business license as herein provided and pay the
taxes set forth in the Schedule of Taxes before permitting the subcontractor to
begin or perform services for the general building, engineering contractor or
owner builder. Every person engaged in the business of contracting and/or
subcontracting shall be required to have a city license for doing the type of work
authorized before obtaining a city building permit.
9. Miscellaneous businesses
Home occupations, subject to compliance with the regulations set forth in
Section 17.08.020.P
Catering/food trucks, subject to compliance with Sections 10.32.170, 10.32.180,
12.20.230(A), 12.20.300, 12.24.020, 12.28.030(10)
Hospital, animal hospitals, sanitariums, mortuary, rest homes
Massage therapy, subject to compliance with the regulations set forth in Chapter
5.74 (excluding massage that is less than 25% of business activity)
Tattoo/piercing studio, subject to compliance with the regulations set forth in
Section 17.26.070
Service and delivery vehicles, including but not limited to:
Trading in, selling, or offering for sale any materials, commodities, goods, wares
or merchandise by means of any vehicle or delivery of same after order, or any
person operating a delivery service for the delivery of any materials,
commodities, goods, wares or merchandise by means of any vehicle, wholesale
and retail (except when in connection with a fixed place of business in the city)
Swimming pool maintenance services
Installation and maintenance of portable toilets
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Installation, servicing, maintaining alarm service
Window cleaning, building cleaning, or carpet cleaning
Television, radio repair service, or appliance repair service
Lawn service, gardening service, landscaping service
All other vehicles not specifically enumerated above
Solicitors/peddlers
Telephone companies
Utility companies without a City franchise
Vending machines, music and amusement machines. Every person required to
have a license by the provisions of this chapter shall file with the license collector
a list of all the coin -operated machines placed within the city by or for such
person, giving the exact location, type and number of such machines.
Music and amusement machines: every person engaged in the business of
operating any amusement or music machine, not otherwise specifically covered
by this chapter, whether coin -operated or not, whether such operation is
incidental to some other business being operated on the premises or whether
such operation constitutes an amusement arcade
Vending machines: every person engaged in the business of operating any
vending machine, vending any service or product, and not specifically covered by
this chapter, where such operation is incidental to, or in conjunction with, some
other business being operated on the particular premises.
Liability for payment of license fee and confiscation of unlicensed machines:
where a coin -operated machine is subject to the licensing provisions of this
chapter, any person owning or in possession of said machine where located shall
be responsible for the licensing of said machine. No person shall keep or
maintain upon his premises any coin -operated machine for which no license has
been obtained and upon which no license or decal has been posted. Where the
person in possession of the premises upon which an unlicensed coin -operated
machine is located refuses to obtain a license for the same on the basis that the
machine is not owned or possessed by him, the license collector or his authorized
deputy or agent shall remove said machine to the city hall and shall place the
same in storage until claimed by the rightful owner thereof. Said machine shall
be delivered to the rightful owner upon payment of moving, storage and accrued
business license charges.
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
All coin -operated machines located in the city shall have prominently displayed
on them the name, address and telephone number of the owner of said machine.
B. Surcharges on Taxes.
All businesses, excluding home occupations, located within the area bounded by
Palm Drive on the east, the Strand on the west, 16ih Court on the north and 8`h
Street on the south ("Downtown") shall pay 20% in addition to the rates
established in the Schedule of Taxes.
All businesses on Pier Avenue between Hermosa Avenue and Pacific Coast
Highway ("Upper Pier Avenue") shall pay 10% in addition to the rates
established in the Schedule of Taxes.
All restaurants with alcohol located outside Downtown and Upper Pier Avenue
shall pay 5% in addition to the applicable rates established in the Schedule of
Taxes.
Section 2. Section 5.04.230 of Title 5, Chapter 5.04 of the Hermosa Beach
Municipal Code is amended to read as follows:
5.04.230 Annual cost of living adjustment of taxes.
Taxes imposed in the Schedule of Taxes on a basis other than a percentage of
gross receipts and the maximum tax established for businesses taxed on the basis
of gross receipts shall be adjusted on an annual basis using the percentage
increase in the cost of living, not to exceed three percent (3%) as calculated by
the United States Bureau of Statistics for the Los Angeles —Riverside —Orange
County Standard Metropolitan Statistical Area for All Urban Consumers.
Section Title 5, Chapter 5.04 of the Hermosa Beach Municipal Code is
amended by adding a new Section 5.04.255 to read as follows:
5.04.255 Penalty for reporting false information on which tax is based
Any person who pays a tax based on a false report of gross receipts or carries on
any food/beverage business after 12:00 a.m, on nights other than those specified
in the license shall pay a penalty of treble the prescribed license tax. Said penalty
shall be collected and the payment hereof shall be enforced in the same manner
as other license taxes are collected and payment thereof enforced, and shall be in
addition to any other remedy provided for in this Chapter, including revocation
pursuant to Section 5.04.260.
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Section 4. Severability. If any provision of this ordinance, or the application of
any such provision to any person or circumstances, shall be held invalid, the
remainder of this ordinance to the extent it can be given effect, or the application
of those provisions to persons or circumstances other than those as to which it is
held invalid, shall not be affected thereby, and to this end the provisions of this
ordinance are severable. The people hereby declare that they would have
adopted each section, subsection, sentence, clause, phrase, or portion of this
Ordinance, irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions of this Ordinance be declared invalid or
unenforceable.
Section 5 This ballot measure is inconsistent with and intended as an
alternative to the initiative ordinance proposed for the November 8, 2011
municipal election, which would modify or increase taxes imposed on bar or
restaurant establishments. If this ordinance and the initiative ordinance are both
passed by a majority voting thereon then the one with the most affirmative votes
shall prevail concerning imposition of such taxes. If the initiative ordinance
receives more affirmative votes, any other taxes proposed by this ordinance that
do not conflict with such ordinance shall be deemed consistent and valid.
Section 6. Effective Date. This Chapter shall become effective immediately
upon the date that this Ordinance is confirmed and approved by the voters of
Hermosa Beach at the Municipal General Election of November 8, 2011. The tax
rates set forth in the Schedule of Taxes shall be first imposed on issuance of a
new license or upon renewal of an existing license following the effective date.
Section 7. Amendment or Repeal. Sections 5.04.200 and 5.04.230 of the
Hermosa Beach Municipal Code may be repealed or amended by the City
Council without a vote of the people. However, as required by Article XIIIC of
the California Constitution, voter approval is required for any amendment
provision that would increase the rate of any tax levied pursuant to this
Ordinance.
Section 8. Schedule of Taxes. Exhibit A attached hereto and incorporated
herein by reference sets forth the tax rates for all businesses operating in the City
and is hereby adopted and approved as the Schedule of Taxes
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Exhibit A - Schedule of Taxes
Business License Category
Section
Rates
GENERAL BUSINESS LICENSE
1.A.1
$175
Private detective, watchman service with a fixed place of
business in the City or rendering a service within the City; loan
company; and escrow company
Dancing studio, studio of music, music lessons, bridge lessons,
art studio, swim school and nursery schools
Dance halls
Barbershops, manicuring, facial massage, beauty parlors,
cosmetic skin treatment and establishments where massage
services are offered by an individual as an incidental or
accessory service and does not occupy more than 25% of the
area of the establishment
Auto or boat parking or storage lot except when this type of lot
is part of and associated with another business activity
Confectionery, candy, popcorn concessions operated in the
foyer or lobby of theaters, places of amusements or public
buildings
Advertising by means of searchlight, skylight, klieg light,
portable flood light or any other such lighting devices, subject
to special permit from Chief of Police
Bench advertising
Checkroom for storage of parcels or wearing apparel
Publishing a newspaper, newspaper agency
Special or seasonal sales, when not in connection with a fixed
lace of business
Laundry or similar business where the public may leave their
wash to be done; launderette, laundromats or dry cleaning on
the premises by individual machines, where a charge is made
through a coin -operated slot or on a flat fee basis; coin -
operated washer and dryer equipment not owned by the
proprietor in apartment houses, hotels, motels and other similar
accommodations for dwelling,_.
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Business License Categoly
Section I
Rates
Auto wrecking and junk dealers subject to compliance with the
requirements of Chapter 5.60
Trained animal show
Bowling alleys subject to compliance with the requirements of
Chapter 5.58
Health and culture establishments
New or used machinery
Selling or offering for sale stocks of machinery, goods, wares or
merchandise advertised as bankrupt, sheriff's, assignee's,
trustee's, creditor's, receiver's or special sale of damaged goods,
subject to compliance with the requirements f Chapter 5.60
Live theaters
Entertainment not in conjunction witrestaurant
serving alcoholic beverages, subject toproval of a
Conditional Use Permit
Motion picture production not operatinxed place of
business in the City, subject to complthe permit
requirements of Section 12.28.I30
Motion picture production
Pawnbrokers, subject to compliance wiirements ofCha
ter 5.60
Pool and billiard parlors, subject toce with the
licensing requirements of Chapter 5.68
Taxicabs and autos for hire, subject to compliance with
Chapter 5.72
Tent shows, transient and other theatrical exhibitions of skill,
physical and mental strength or ability, art or science, subject to
prior approval of a Conditional Use Permit or Special Permit
issued pursuant to Section 12.12.070
Processions, parades, etc., in connection with any amusement or
other enterprise operated for profit, subject to prior approval of
a Special Permit issued pursuant to Section 12.12.070
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Business License Category
Section
Rates
Dating bureaus, compatability, matching services,
counseling or advisory services
Motion picture theaters, subject to prior
approval of a Conditional Use Permit
AUTOBOAT/DEALER/MFG/WHOLESALE
fixed rates
AutoBoat/Dealer/MfglWholesale < $3,000,000
1.A.2
$500
Sales
Auto/Boat/Dealer/Mfg/Wholesale > $3,000,000
LA.2
$1,250
Sales
Gasoline Service Stations
1.A.3
$2,500
PROFESSIONAL AND SEMI-PROFESSIONAL
fixed rate plus rate
SERVICES WITH A FIXED PLACE OF
LAA
per employee
BUSINESS IN THE CITY
Professional and semi-professional services with
a fixed place of business in the City, including
but not limited to attorneys, income tax agents,
auditors, accountants, architects, engineers, real
estate brokers, chiropodists, dentists, opticians,
optometrists, osteopaths, physicians, surgeons,
$350 plus $25 per
veterinarians, and any other similar professions
employee
for which a State license is required, public
stenographer, telephone services, employment
agencies, advertising agencies, public relations
agencies, travel agencies, consultants not
qualifying as professional or semi-professional,
telephone soliciting office
LODGING
1.A.5
fixed rates per unit
Apartments, Hotels, Motels, Rental of
$35 per unit, owner
Residential Property, Care Centers
occupied exempted
Trailer and Mobile Home Park
$30 per unit
FOOD & BEVERAGE
LA.6
Restaurant without alcohol
$250
Bar and restaurant with alcohol closing before
$600
12am
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Business License Category
Section
Rates
Bar and restaurant with alcohol, closing after
12am three days or less per week (specific days
$2,000
must be identified in business tax certificate
Bar and restaurant with alcohol, closing after
12am four days per week (specific days must be
$3,000
identified in business tax certificate
Bar and restaurant with alcohol, closing after
12am five days or more per week (specific days
$5,000
must be identified in business tax certificate
Food and/or beverage with drive-thru
$1.00 per $1,000 in
operation Maximum tax - $8,000gross
receipts
RETAIL
1.A.7
Retail < $250,000 Sales
$175
Retail > $250,000 Sales (Maximum tax -
$1.00 per $1,000 in
$8,000gross
receipts
All retail establishments not expressly listed in
$175
another category
Greater $00 or
Supermarkets, Drug Stores, Liquor Stores, or
$1.00 peerr$1,, 000
Liquor
Off -Sale Liq
gross receipts
$1,500 credit for
Off -Sale Alcohol Credit
closing hours at or
before 12am
BUILDING CONTRACTORS
4
1.A.8
fixed rates
Contractors
$350
Subcontractor
$275
MISCELLANEOUS
1.A.9
Home occupations, in compliance with the
$99 per year.
regulations set forth in Section 17.08.020F
Catering/food trucks, subject to compliance
with Sections 10.32.170, 10.32.180,
$500 per vehicle per
12.20.230(A), 12.20.300, 12.24.020,
year.
12.28.030 10
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Business License Category
Section
Rates
Hospital, animal hospital, sanitariums,
$1,500 plus $25 per
mortuary, rest homes
employee
Massage therapy, in compliance with the
regulations set forth in Chapter 5.74
$750 per year.
(excluding massage that is less than 25% of
business
Tattoo piercing studio, in compliance with
$750 per year.
the regulations set forth in Section 17.26.070
Services and delivery vehicles including but
not limited to swimming pool maintenance
services, installation and maintenance of
portable toilets, installation, servicing,
maintaining alarm service, window cleaning,
$175 per vehicle per
building cleaning, or carpet cleaning,
year.
television, radio repair service, or appliance
repair service, lawn service, gardening
service, landscaping service, all other
vehicles not specifically enumerated above
$200 per individual per
Solicitors/peddlers
year.
$1.00 per $1,000 in
Telephone Companies
Gross Receipts
$1.00 per $1,000 in
Utility companies without a City franchise
Gross Receipts
Vending machines, music and amusement
$100 per machine per
machines
year.
SURCHARGE ON TAXES: UPPER PIER
AVENUE (on Pier Avenue between Hermosa
LBF:Aqdd101%7oAvenue
and Pacific Coast Highwa )
SURCHARGE ON TAXES: DOWNTOWN
(Alt businesses, excluding home
occupations, located within the area
1B
bounded by Palm Drive on the east, the
Strand on the west, 16th Court on the north
and 8th Street on the south)
(Continued on next page)
PROPOSED ORDINANCE OF MEASURE N (Continued)
Business License Category Section Rates
SURCHARGE ON TAXES: FOOD AND
BEVERAGE (all restaurants with alcohol LB Add S%
located outside Downtown and Upper Pier
1. In determining the number of days open per week for restaurants, the following
holidays are exempt: New Year's Eve, Sunday evening prior to Martin Luther
King Jr. Day and President's Day, St. Patrick's Day, Cinco de Mayo, Sunday
evening prior to Memorial Day, Independence Day, Sunday evening prior
to Labor Day, Thanksgiving Day, Day after Thanksgiving, and Christmas.
(Section 1.A.6)
2. All categories except restaurant without alcohol and restaurants with beer and
wine that close by 10:00 p.m. are subject to prior approval of a conditional use
permit. No tax refund is available should a restaurant with alcohol reduce the
number of days it is open after 12:00 a.m. An increase in the number of days a
restaurant is open after 12:00 a.m. will require payment of the additional W.
(Section 1.A.6)
3. Taxes imposed in the Schedule of Taxes on a basis other than a percentage of
gross receipts and the maximum tax established for businesses taxed on the basis
of gross receipts shall be adjusted on an annual basis using the percentage
increase in the cost of living, not to exceed three percent (3%) as calculated by
the US Bureau of Labor Statistics for the Los Angeles -Riverside -Orange County
Standard Metropolitan Statistical Area for All Urban Consumers. (Section 2)
4. Any person who pays a tax based on a false report of gross receipts or carries on
any food/beverage business after 12:00 a.m. on nights other than those
specified in the license shall pay a penalty of treble the prescribed license tax.
Said penalty shall be collected and the payment hereof shall be enforced in the
same manner as other license taxes are collected and payment thereof enforced,
and shall be in addition to any other remedy provided for in this Chapter,
including revocation pursuant to Section 5.04.260 (Section 3)
5. Businesses with a fixed location within the boundaries of the City other than
bars and restaurants with alcohol that close after 12:00 a.m. are exempt from
business taxation for the first year the business is in operation but must
nonetheless file a business license application. (Section 1.A)