HomeMy WebLinkAboutORD INTRO 2 AMNESTY 05-04-92'�f i i✓ X• L L
ORDINAN'C'E FOR INTRODUCTION, NO. 2
5-4-5
- E nter - Com
DATE: MAY 4, 1992
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: BUSINESS LICENSE TAX AMNESTY PROGRAM
RECOMMENDATION:
That Ordinance No. 1087, declaring a Business License Tax Amnesty
Program during the months of July, August and September 1992, have
first reading by title only and introduction.
BACKGROUND:
The Business License Division has determined through the use of the
City's business license computer program, Orange County Fire
Department inspection lists, and consumer and credit verifications
that there continues to exist numerous unlicensed and delinquent
businesses in Tustin resulting in a substantial loss of revenue to
the City.
Pursuant to Tustin City Ordinance No.. 328, Section 8, penalties for
delinquent filing are 25% of the total license tax due, for each
month after the due date, not to exceed 100% of total tax due.
This can prove costly for many unlicensed and delinquent
businesses.
Last year, after reviewing two recent and successful Tax Amnesty
Programs conducted by the cities of Los Angeles, and Santa Monica
the City Council approved an equitable and manageable Business
License Tax Amnesty Program. The program allowed unlicensed
businesses and licensed businesses delinquent in payment, to apply
for licensing without fear of prosecution or payment of penalties.
To achieve additional compliance, staff is currently proposing that
Council approve a second Amnesty Program, to run from July 1, 1992
through September 30, 1992. The program will target businesses in
the City that have failed to pay their business license tax along
with delinquent business license accounts. All penalties will be
waived under the program, but the City will have the authority to
collect up to three years back taxes.
In order to reach the unlicensed and delinquent businesses, press
- releases and advertisements will be run in local publications,
including the Tustin Weekly, Tustin News and The Chamber of
City Council Report
Business License Tax Amnesty Program
Page 2
May 4, 1992
Commerce's monthly newsletter. The marketing program will
highlight a number of advantages to the attention of business
owners.
1. Penalties on past taxes usually equal 100% of the tax due
(This creates a substantial savings in fees)
2. Elimination of prosecution for late and delinquent filing
3. City of Tustin has lowest business license tax in the
County of Orange
CONCLUSION:
The Business License Amnesty Program would not only capture many
unlicensed businesses, but create a business license tax awareness
within the business community as well. This would hopefully reduce
the amount of delinquent accounts in the future.
Christine Shinglet
Assistant City Manager
CS:D0:kd\blamnsty.ccr
i
2'
3j
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
ORDINANCE NO. 1087
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, DECLARING A BUSINESS
LICENSE AMNESTY PROGRAM DURING THE MONTHS OF
JULY, AUGUST, SEPTEMBER 1992.
The City Council of the City of Tustin does hereby ordain
as follows:
I. The City Council finds and determines as follows:
A. Section 2521(c) of the Tustin City Code provides a
penalty for failure to pay the business license tax
when due.
B. There are presently a number of businesses who have
never obtained a business license. If they obtain a
business license at this time, they will be subject to
penalty fees under Section 2521(c).
C. It would be to the benefit of the City if all
unlicensed businesses were encouraged to license. The
City Council finds that a three month amnesty period,
during the months of July, August and September 1992,
during which no penalties would be due for prior
failure to pay license taxes when due, would encourage
unlicensed businesses to license during those months.
II. The City Council does hereby declare:
A. That Section 2521(c) of the Tustin City Code shall be
of no force and effect during the months of July,
August and September 1992. All businesses that pay
license fees during that three-month period shall be
excused from paying the penalties imposed by such
Section.
B. Except as specified herein, and all other provisions
of the Tustin City Code, shall be in full force and
effect.
III. This Ordinance shall be effective during the months of
July, August and September 1992 only, and $hall not be codified
in the Tustin City Code.
1
2
3
4
5
6
7
8
9
10
11
12
13
14I
15!
16
17
18
19
20
21
22
23
24
25
26
27
28
Ordinance No. 1087
Page 2
PASSED AND ADOPTED at a regular meeting of the City Council held
on the 4th day of May, 1992.
LESLIE ANNE PONTIOUS
Mayor
MARY E. WYNN
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1087
MARY E. WYNN, 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
was duly and regularly introduced at a regular meeting of the
City Council held on the 4th day of May, 1992, and passed and
adopted at a regular meeting of the City Council held on the
18th day of May, 1992, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
CS:DO:kd
MARY E. WYNN, City Clerk