HomeMy WebLinkAboutORD FOR INTRODUCTION 09-16-85 JDA ~ ORDINANCES FOR INTRODUCTION
SEPTEMBER 16, 1985
DATE:
TO:
FROM:
SUBJECT:
HONORABLE MAYOR AND CITY COUNCIL
COI~UNITY DEVELOPMENT DEPAR1)IENT
REVISION TO BUSINESS LICENSE ORDINANCE
RECOI~qENDED ACTION:
First Read Ordinance No. 943 by title only.
Introduce Ordinance No. 943.
SUI~ARY:
The adoption of Ordinance No. 943 would amend the existing business
license ordinance by changing the responsibility for collection of
fines from the Finance Director to the Director of Community
Development, and reduces the grace period for payment of the license
tax from 90 to 30 days.
DISCUSSION:
Under current regulations, the license tax assessed upon each business
within the city is due on January I of each year. However, the tax is
considered delinquent and penalty fees assessed until March 31 of the
same year.
When considering the present license fee schedule ($100.00 maximum for
business with annual gross receipts in excess of $600,000.00), the 90
day grace period appears to be a more than adequate time to pay the
required tax. However, this 90 delinquency period extends the renewal
process to over six months from the time renewal process commences in
late November to sometime in April when all accounts are current or
else closed.
In an effort to increase efficiency in the collection process and
thereby allot more time for other enforcement aspects of the business
license program, it is recommended that the delinquency period be
reduced from 90 to 30 days. All unpaid licenses would then be
delinquent on February 1 of each calendar year.
September 16, 1985
Revision Business License Ordinance
page two
The adoption of Draft Ordinance No. 943 would implement this
recommendation (Sec. Id1). Ordinance 943 would also formally transfer
responsibility for collection of penalty fees from the Finance
Director to the Director of Community Development (Section I.c). All
other aspects of the ordinance would remain the same and are only
indicated within the text to ensure clarity when the ordinance is
codified.
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Attachment: Draft Ordinance 943
Community Development Department
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ORDINANCE NO. 943
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING SECTION 2521 OF THE TUSTIN
CITY CODE, RELATIVE TO BUSINESS LICENSE TAXES
The City Council of the City of Tustin does hereby ordain as follows:
That Section 2521 of the Tustin City Code is hereby amended in its
entirety to read as follows:
2521
REQUIRED TO BE PAID
a. Generally
Every person who engages in business within the City shall pay a
license tax upon business done within the City annually, unless
otherwise provided in this Chapter, in the amounts and at the
rates herein after designated.
b. Unexpired Licenses
Where a license for revenue purposes has been issued to any
business by the City, and the tax paid therefor under the
provision,s of any ordinance heretofor enacted, and the terms of
such license have not expired, then the license tax prescribed by
this Chapter for such business shall not be payable until the
expiration of the term of such unexpired license.
c. Penalties for Failure to Pay When Due
For failure to pay the license tax when due, the Director of
Community Development shall add a penalty of twenty-five percent
(25%) of such license tax on the last day of each month after the
due date thereof; provided, that the amount of such penalty to be
added shall in no event exceed one hundred percent (I00%) of the
amount of the license tax due.
d. When Payable
Unless otherwise specifically provided, all annual license taxes
under the provisions of this Chapter shall be due and payable in
advance on the first day of January of each year; provided, that
license taxes covering new operations commenced after the first
day of January may be pro-rated for the balance of the license
period, by calendar quarters.
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Ordinance No. 943
Page two
Except as otherwise herein provided, license taxes required
hereunder shall be due and payable as follows:
Annual: Due and payable on the first day of January of
each year; delinquent on January 31 of the same year.
Weekly flat-rate license taxes: On Monday of each week,
in advance.
3. Daily flat-rate license taxes: Each day, in advance.
New businesses: Due immediately prior to commencement
of business, and delinquint on the first day of
commencement of business.
e. Deemed Debt Owed City
The amount of any license tax and penalty imposed by the
provisions of this Chapter shall be deemed a debt to the City. An
action may be commenced in the name of the City in any court of
competent jurisdiction for the amount of any deliqu~nt license tax
penalties'.
PASSED AND ADOPTED at a regular meeting of the City Council, held on
the day of , 1985.
Attest:
FRANK H. GREINKE,
Mayor
MARY E. WYNN,
City Clerk