SR-8-C (16)
..
.,
r-~
JUN 1 6 1981
Z. 6? &' -t)/Zf
CA:RMM:rmd497/hpca
city Council Meeting 6-16-87
Santa Monica, California
STAFF REPORT
TO:
Mayor and city council
city Attorney
Ordinance Adding section 6129 to the Santa
Monica Municipal Code Establishing a Business
Tax Audit Program
FROM:
SUBJECT:
In connection with the adoption of the 1987-88 Budget, the
city Manager has requested that the city Attorney prepare an
ordinance establishing a business license tax audit program. The
accompanying ordinance adds Section 6129 to the Santa Monica
Municipal Code to establish an ongoing audit program.
On June 24, 1986, the City Council adopted a tax amnesty
and auditing program. The tax amnesty program operated between
July 1, 1986, and August 31, 1986, and the tax auditing program
ends on June 30, 1987. The accompanying ordinance would provide
for an ongoing aUditing program. During the current fiscal year,
the tax auditing program resulted in collection of an additional
$145,000 in tax revenue.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Robert M. Myers, City Attorney
C:c,
JUN 1 6 1987
..
CA:RMM:rmd498/hpca
City Council Meeting 6-16-87
Santa Monica, California
ORDINANCE NUMBER
(City council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ADDING SECTION 6129 TO THE
SANTA MONICA MUNICIPAL CODE ESTABLISHING A
BUSINESS TAX AUDIT PROGRAM FOR BUSINESSES
OPERATING IN THE CITY OF SANTA MONICA
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1.
section 6129 is added to the Santa Monica
Municipal Code to read as follows:
SECTION 6129.
Business Tax Audit
Proqram.
A. The Director of Finance shall
conduct a program to audit business
license
tax
returns
of
businesses
operating in the Ci ty of Santa Monica.
The audit shall be conducted for the two
tax periods preceding the current tax
period.
B. If, subsequent to the audit it
is determined that the bus iness has been
delinquent
or
has
non-reported
or
under-reported gross receipts, thereby
underpaying business license taxes, the
- 1 -
licensee shall pay to the City within ten
(10) days of notification of the
determination the amount of tax due,
interest from the date the tax was due in
the amount determined by the Director of
Finance based upon the City's actual rate
of return on its invested funds, and a
penalty in the amount of the tax due. No
person who fails to pay the tax due as
required by this Section shall operate a
business in the City of Santa Monica.
c. The Director of Finance shall
issue forms and instructions and take
other actions as are needed to implement
this section.
SECTION 2. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
- 2 -
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
~ ~. t--v---
ROBERT M. MYERS - U
city Attorney
- 3 -