HomeMy WebLinkAbout09 EXEMPT REAL ESTATE AGENTS (BUSINESS LICENSE) - ORDINANCE NO. 1439AGENDA REPORT
MEETING DATE: DECEMBER 3, 2013
Agenda Item
Reviewed:
Finance Director
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: JEFFREY C. PARKER, CITY MANAGER
FROM: CHUCK ROBINSON, DEPUTY CITY MANAGER
0
SUBJECT: ORDINANCE NO. 1439, AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF TUSTIN ADDING SECTION 2518 TO ARTICLE 1,
CHAPTER 6, PART 2 OF THE TUSTIN CITY CODE TO EXEMPT
REAL ESTATE AGENTS FROM BUSINESS LICENSE
REQUIREMENTS
SUMMARY:
At the City Council's November 19, 2013 meeting, the City Council directed staff to bring
back modifications to the Tustin Municipal code exempting real estate agents from
business license requirements (Ordinance No. 1439 attached). In addition, the City
Council requested staff research and bring back a recommendation regarding insurance
agents relative to business licenses and State law.
Staff's research has concluded it is not necessary to make any further Code amendments
to address the concern raised by insurance agents about their State Constitutional rights
to be exempt from local business taxes. TCC Section 2513(a) already exempts from the
City's business license taxes "Nothing in this Chapter shall be deemed or construed to
apply to any person transacting and carrying on any business exempt, by virtue of the
Constitution or applicable statutes of the United States of America or of the State, from
the amount of such taxes as are herein prescribed."
As a result, to the extent an agent is already exempted under the State Constitution, City
staff already possess the necessary authorization in the City Code to take administrative
action to address that issue.
RECOMMENDATION:
It is recommended that the City Council:
1. Read by title only and waive further reading, ORDINANCE NO. 1439, AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN ADDING SECTION
2518 TO ARTICLE 1, CHAPTER 6, PART 2 OF THE TUSTIN CITY CODE TO
EXEMPT REAL ESTATE AGENTS FROM BUSINESS LICENSE REQUIREMENTS;
AND,
2. Bring back Ordinance No. 1439 for second reading and adoption at the December 17,
2013 City Council meeting.
FISCAL IMPACT:
The adoption of this ordinance will result in a reduction in business license revenue,
which at this time is unknown due to there being more real estate agents than business
license brokers.
CORRELATION TO THE STRATEGIC PLAN:
The review of the Business License program correlates to the Strategic Plan Goal C
Financial Strength, 2. Explore opportunities for new or increased revenues, b. Evaluate
the City's business license program to ensure fairness and equity for all businesses.
Attachment: Ordinance No. 1439
ORDINANCE NO. 1439
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF TUSTIN ADDING SECTION 2518
TO ARTICLE 1, CHAPTER 6, PART 2 OF THE
TUSTIN CITY CODE TO EXEMPT REAL ESTATE
AGENTS FROM BUSINESS LICENSE REQUIREMENTS.
The City Council of the City of Tustin, California, hereby ordains as follows:
SECTION I. Section 2518 of the Tustin City Code is added to read as follows:
2518 EXEMPTION FROM BUSINESS LICENSE REQUIREMENT
Notwithstanding anything to the contrary in this Chapter, real estate agents shall be
exempt from obtaining a business license and from paying a corresponding business
license fee. This section shall not apply to real estate brokers.
SECTION IL This Ordinance shall become effective on the 31 st day after approval.
SECTION III. If any section, subsection, subdivision, paragraph, sentence, clause, or
phrase in this Ordinance or any part thereof is for any reason, held to be unconstitutional
or invalid, or ineffective by any court of competent jurisdiction, such decision shall not
affect the validity or effectiveness of the remaining portions of this Ordinance or any part
thereof. The City Council hereby declares that it would have passed this Ordinance and
each section, subsection, subdivision, sentence, clause, and phrase thereof, irrespective
of the fact that any one or more sections, subsections, subdivisions, sentences, clauses,
or phrases be declared unconstitutional.
PASSED, APPROVED, AND ADOPTED this day of 2013.
ELWYN A. MURRAY
MAYOR
ATTEST:
JEFFREY C. PARKER
CITY CLERK
APPROVED AS TO FORM:
DAVID KENDIG
CITY ATTORNEY
ORDINANCE CERTIFICATION
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
ORDINANCE NO. 1439
Jeffrey C. Parker, City Clerk of the City of Tustin, California, does hereby certify that the
whole number of the members of the City Council of the City of Tustin is five; that the
above and foregoing Ordinance was passed and adopted at a regular meeting of the City
Council held on the day of , 2013, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
JEFFREY C. PARKER
CITY CLERK