HomeMy WebLinkAbout08 ORD 1439 - EXEMPT REAL ESTATE AGENTS FROM BUS LICENSE REQ'MTSAGENDA REPORT
MEETING DATE: DECEMBER 17, 2013
TO: JEFFREY C. PARKER, CITY MANAGER
Agenda Item 8
Reviewed:
City Manager
Finance Director eA
FROM: ERICA RABE, CITY CLERK SERVICES SUPERVISOR
SUBJECT: SECOND READING AND ADOPTION OF 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.
Staffs 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 exemptsirom 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:
Have second reading by title only and adoption of Ordinance No. 1439 (roll call vote).
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.
BACKGROUND:
On December 3, 2013, the City Council had first reading by title only and introduction of
the following Ordinance:
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
ORDINANCE NO. 1439
AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA,
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 II. 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.
ELWYN A. MURRAY,
Mayor
ATTEST:
JEFFREY C. PARKER,
City Clerk
Ordinance No. 1439
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ORDINANCE CERTIFICATION
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
ORDINANCE NO. 1439
I, Jeffrey C. Parker, City Clerk and ex- officio Clerk of the City Council 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 No. 1439
was duly and regularly introduced at a regular meeting of the Tustin City Council, held
on the 3rd day of December, 2013, and was given its second reading, passed, and
adopted at a regular meeting of the City Council held on 17th day of December, 2013,
by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
JEFFREY C. PARKER,
City Clerk
Ordinance No. 1439
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