SR-8-A (45)
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CA;BMH:rnfilOOB
City Council Meetina 11-8-83
Santa Monica, Cal~fornla
STAFF REPORT
TO:
"layor and City Councll
PROM;
Clty Jl.tt.orney
SUBJFCT:
Business License Tax Oroinance
At lts neetinq on October 25,
1983, the Cltv Council
lntroducen f0r ~irst reading an ordinance Chanqlnq the business
license tax structure of the Clty of Santa Monica. The orolnancp
18 now presenteD for anopt1on.
REC OMr--lEND A'!' I ON
It 1S respectfully recoI"'J11ended that the acco!'1panving
ordlnance he adopted.
PREPAPED BY:
Rohert M. Myers, Clty Attorney
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NOV 8 lS83
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CA:PMM:rn6100B
C~ty Council Meet~nq 11-9-83
Santa Monica, California
ORDINANCE NUMBER 1289(CCS)
(C~ty Council Series)
AN O~DINANCE OF THE CITY COUNCIL
OF ~HE CITY OF SANTA MONICA
N1ENDING SECTIONS 6106, 6107, 6116, 6209,
6212B, 6212C, 62l2E,
62l9A, 6225. 6226, 6236, AND 6240
OF THE SAtryA MOPICA MUNICIPAL CODE,
REPEALING SECTION 6240A OF THE
SAlTTA MONICA ML~ICIPAL CODE,
AND ADDIN9 SECTIONS
6116B, 6127, AND 6225A
~O THE SANTA MONICA MUNICIPAL CODE
RELATING TO THE BUSINESS LICENSE TAX
T~E CIT~ COU~JCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTIO~ 1. Section 6106 of the Santa Monica Municipal Code
is anended to read as follows:
SECTION 6106. Director of Flnance to
Issue.
(a) The Llcenses reauired by this Corle
shall be issued by the Director of F~nance
and shall state therein the anount t~ereof,
the period of tiMe covered thereby, the naMe
of the person to WhOM issued, the business
licensed
~d
the location or place of
business where such business ~s to be carrled
on.
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(h) Po license aranted or issued under
provisions of the Code shall be in any nanner
transferrer or assigned.
(c) The D1rector of Finance shall rake
a charge of S2.00 for each dupl1cate license
issued under the provisions of this Code
Wh1Ch has been lost or destroyed.
(d) In no case shall any Mistake Made
bv t~e D1rector of Finance in stating the
aMount of a license nrevent or preju(Uce the
collection by the City> of the a~ount actually
due froM any licensee.
(e) Whenever in th15 Article the City
Clerk is charaed with the responsibillty of
processing,
issuinq,
or adMinisterinq a
license or perMit. the reference to t~e City
Clerk shall be deened a reference to the
Director of Finance.
SEC~ION 2. Section 6107 of the Santa Monica Municipal Code
15 aMended to read as follows:
SECTION 6107. TerM of License.
(a) All license fees shall ~e paid in
advance in leaal ~oney of the United States,
at the 0ffice of the Director of Finance. A
separate license nust he obtained for each
branch establishnent or separate place of
bus1.ness,
1.n which business is carr~ed on,
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and each license shall authorize the party
obtaining it to operate only that bus1ness
described ln such license, and only at the
location
or place of business wplch is
indicated therebv.
(b) Every weekly llcense shall expire
F\t Mldnight on the Sunday next succeeding its
day of issuance.
(c) Every ~onthly license shall expire
at nidnlght of the last dav of the Month
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during which it was issued.
(d) Every annual llcense shall expire
at nidnLght on the June 30th next succeeding
its issuance unless specified otherWlse 1n
this Code.
(e) In the event a bond 15 reauired no
license shall be issued until said bond has
been filed with the Dlrector of Finance.
(f) No crreater or lesser aMount of
~oney shall be charged or received for any
license than is provided 1n this Code, and no
license shall be sold or issued for any
period of tiMe other than 15 provided in this
Code.
SECTION 3.
Section 6116 of the Santa Monica Mllnic~pal Code
1S anended to read as follows:
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SECTION 6116. StateMent of Licensee.
(a) In all cases where tne anount of
l~cense to be pa~d by any
upon the anount of receipts,
business transacted, or upon
person is basect
or sales or of
tl'1e nunber of
persons eMployed or upon the number of wagons
or other veh~cles, used, or upon the amount
of the maxinuM admiss~on fee charged, or upon
the nuMber of tables or chairs used for any
game or upon the nuMber of units in any
bu~lding or upon the seat~nq capacity, such
person, before obtainincr a license for such
business and w~thin thirty (30) days after
the he~inning of each license period, shall
file wlth the Dlrector of Finance a written
staterrlent
1n
the forM required by the
Director of Finance, supported by such
docunentatlon requested by the Director of
Finance, showing the total anount of rp.ceipts
or sales or of business transacted during thp
preceding license year, or the nunber of
wagons, or other veh~cles used or the anount
of the maxinun actnission fee charged, or the
nUMber of ~nits contained in such buil~ing,
or the seating capacity at the date of such
statement.
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(b) If two or more closely related
bus~nesses
are
carried on at the saMe
location and under the sa~e ownership and the
businesses are on a gross receipts basis, the
gross receipts srall be reported toqether and
the greater of the rates applicable w~ll be
used for the cOMpilation of the annual
license fee. ~.1hen two or More non-related
bus~nesses are operated at one location,
separate licenses shall be requ~red.
(c) If any person is required to have
two or more licenses subject to a license fee
under Sections 62251 6225A, 6226, 6236, or
6240 of ~hlS Code, the person shall pay, in
additlon to the Minimum annual license fee
for each license, a sinqle license fee for
all llcenses co~puten on the basis of ~le
total gross recelpts of all licenses.
(d) No state~ent filen nursuant to
this Section shall be conclusive upon tpe
Clty or upon any officer thereof as to the
matters therein set forth, and the sane spall
not prejudice the riaht of the City to
recover any aMount that May be ascertained to
he due fran such person In ~ddition to the
amount shown by such state~ent should it be
found to be lncorrect.
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(e) If any person requlrp-d to file anv
statement pursuant to this Section sr.all fail
to do so, such person shall be reauired to
pay a license fee at the naxiruM rate herein
prescribed for the business carried on by
such person and shall be guilty of a
vlolation of this Code and shall be
punishable therefor as hereinafter provided.
(f) In anv case where the first
Ii cens e is
to be
lssued for a newly
the nininu~ tax for
established
business,
that type of business shall be oaid, and at
the terMination of the license period durinq
which tr.e operation of such business is
connenced, the
pp-riod shall be
license for such
adJusted and paid
license
.In tre
Manner provided by this Section for the
ascertaining and paY.lnq of licenses for other
license periods, after deductinn froM tre
amount so found to be due the aMount pa~d at
the t.lMe such first license ~....as issued.
(g) ~he correctness of any statenent
filed pursuant to this Section sr.all he
subject to audit and ver.lfication by the
Director of Flnance, who is hereby authorized
and eMpowered to inspect and audit the hooks
and records of any and all persons licensed
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to carryon any business specified in this
Code.
(h) Any stateMent filed pursuant to
this SectLon shall be signed and shall
contain the following:
"I declare, unrler penalty of Making a
false declaration, that I an autnorized to
~ake this stateMent and to the best of MY
knowledge and bellef lt lS a true, correct
and complete stateMent, Made in qood falth
for the period stated."
For naking a false stateMent or
declaration the person signing the statement
shall be guilty of a Mlsneneanor.
(l) Any statenent filed pursuant to
thls Bectlon shall be confldentlal in
character and shall net be subJect to public
inspection. I~ shall be the duty of the
Director of Finance to preserve and keep the
statements so that the contents thereof nay
not become ~nown except to the persons
charged by law with tDe ad~inistration of
this Code.
SECTION 4. Section 6209 of the Santa ~'onica Municipal Code
15 anended to read as follows:
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SECTION 6209. Auto and Tra~ler Sales.
Buying,
sellinq or offering for sale new or
used autoMobiles, trucks, trailers, house
trailers, or campers,
includinq narts and
repa~rs,
the annual l~cense fee shall be
$100.00 or $1.25 per each SI,aOO or fraction
thereof
of gross receipts, whichever is
greater.
In no event shall any license fee
requ1red to be paid pursuant to this Section
be in excess of $2,500 for license year
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1983-84, S2,500 for license year lQ84-85, and
$5,000 for license year 1985-86 and each
l~cense year thereafter.
SECTION 5.
Section 6212B of the Santa Monica t1unicipal
Code is anended to read as follows:
SECTION
6212B.
Sub
or Specialty
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Contractors and Buildina Trades. Enaaginq in
any of the follow1ng listed businesses, the
annual license fee shall be S50.00.
1. Awning.
2. Boilers, not water hearting, steaM
fitting.
3. Burglar AlarM.
4. Cabinet and Mill work.
5. Ce~ent and concrete.
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6.
Electric signs.
Elevator installatlon.
7.
8.
Excavating,
gradlng,
trencrung,
pavin9, surfacing.
9. Fire protection engineering.
10. Floodlight service.
11. Flooring.
12. Glazing.
13. Heating and air conditioninq.
14. House and buildinq Movina or
wreckinq.
15. Insulation.
16. Landscapinq.
17. Lathing.
18. r1asonry.
19. ~lscellaneous.
20. OrnaMental Metals.
21. Painting and decoratina.
22. Pest control.
23. Plastering only.
24. Refrlgeration.
25 . Roofing.
26 . Screens.
27. Sewer ($l,OOO surety bond).
28. Sheet netal.
29. Signs.
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30. Sprinkling.
31. Steel.
32. ~11e (ceram1c and ~osa1c).
33. Weather str1pp1ng.
34. Helding.
35. Well drillinG.
Lathing and plasterlng combined and who
hold a state license for both and who uses
his or her own employees to do both May be
issued one license cover1ng both businesses
for the annual license- fee of $50.00.
SECTION 6.
Section 6212C of the Santa Monica
MunlClpal Code 15 anended to read as follows:
SECTION
6212C.
Subcontractors,
contractors.
Engagina
in
any
of the
fOllowing listed bus1nesses,
license fee shall be $50.00.
1. Plumbinq Contractor.
2. Heat1ng Contractor.
3. Electrical Contractor.
tl1e annual
SECTION 7.
Section 6212E of the Santa Monica
Municipal Code is anended to read as follows:
SECTION 6212E. Gross Receipts in
Excess of $50,000. Any person described in
Section 6212, 6212B, and 6212C whose aross
receipts from work perforMed in the City of
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Santa Monica exceed $50,000 in addition to
the fee here1nabove set forth,
shall be
required to pay an additional annual license
fee of $1.00 per each $1,000 or fraction
thereof of gross receipts in excpss of
$50,000 and less than or equal to $100,000
and Sl.25 per each $1,000 or fract10n thereof
of gross receipts 1n excess of SlOG,OOO.
SECTION 8.
Section 6219A of the Santa Monica ~un1cipal
Code 1S anenden to rean as follows:
SECTION 6219A. Commercial Rental.
A.ny
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person, group, assoc1ation, partnership,
or corporat1on, whether as the owner or as
the agent for the owner, who rents, leases or
has available for rent or lease, one or nore
cOnMercial
building,
industrial building,
offices or office buildinq, land or vacant
lots that ~ay be utilized for comnerical,
industrial or off1ce uses, whether at one or
Multiple locations, the annual license fee
shall be $50.00 plus $1.00 per eac~ $1,000 or
fract10n thereof of gross receipts in excess
of S50,000 and less t~an or equal to $100,000
and $1.25 per each $1,000 or fraction thereof
of gross receipts in excess of SlOO,OOO.
SECTION 9. Section ~225 of the Santa Monica Municipal Code
15 anended to read as follows:
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SEC'!'ION
6225.
~erchants-Retail.
Manufacturing and selling any goods, wares or
nerchandise
at retal1 or selllnq any aoods,
nerchandise at retail and not
speciflcally l~censed by otner
wares or
otherwise
proVls10ns of this Code, or not specifically
exenpten fron the payment of l1censes by this
Code, the annual license fee shall be S50.00
nininum, plus $.60 per each Sl,OOO or
fraction thereof of qross receipts in excess
of S50,000 and less than or equal to S250,000
and Sl.25 per each $1,000 or fraction thereof
of qross receipts in excess of S250,000.
SECTION 10.
Section 6226 of the Santa Monlca Municipal
Code is aMended to read as follows:
SECTION
62 26 .
Hanufacturl'O!rs-
Wholesalers. Manufacturing and sellinq any
~oods, wares, or rerchandise at wholesale or
selling soods, wares, or nerchanolse at
wholesale ann not otherwise specifically
licensed by other provislons or tpis Code, or
not specifically exeMpted frOM the ~aynent of
licenses by t~is Code, the annual license fee
shall be S50. 00 ninir'lUM, plus S. 50 per each
Sl,OOO or fraction thereof of qross receints
in excess of S50,000 and less than or equal
to $250,000 and Sl.00 per each $1,000 or
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fraction tpereof of gross receipts in excess
of S250,000.
SECTION 11.
Section h236 of the Santa !1onica Hunicipal
Code is amended to read as follows:
SECTION
6236.
Professional.
Any
person, group, association, partnership, firn
or corporation engaoed in
vocation or callinq, listed
a profession,
hereinafter or
not specifically provided for in any other
Sect10n of this Code,_the annual license fee
shall re $50.00 plus Sl.OO per each Sl,OOO or
fraction thereof of gross receipts in excess
of S50,000 and less than or equal to SlOO,OOO
and S3.00 per each Sl,OOO or fraction thereof
of gross receipts in excess of S100,000.
The professions, vocations or callinqs
referred to herein include, but are not
limited to the following:
1. Accountant.
2. Appraiser.
3 . Architect.
4. Assayer.
5. Attorney-at-law.
6. Auditor.
7. Bacteriologist.
A. Bond Broker.
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9. Certifiec. Public Acountant.
10. CheMist.
11. Chiropodist.
12. Ch~ropractor.
13. C1Vl1 Engineer.
14. Cornnerclal Artist.
15. Cornnission ~~ercpant.
16. Credit Report.
17. Decorator (Interior).
18. Dental Technician.
19. Dentist.
20. Designer.
21. Doctor-Medical.
22. DraftsI'1an.
23. Druqless Practitioner.
24. Electrical Engineer.
25. Electrologist.
26. Geologist.
27. Eypnotist or Hypnot~eraplst.
28. Insurance Adjuster.
29. Insurance Broker.
30. Landscape Architect.
31. Manufacturer's Agent.
32. Mechanical Engineer.
33. Mining Enaineer.
34. OCUllst.
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35. Optician.
36. Optonetrlst.
37. Osteopath.
38. Phys1.cian.
39. Psychiatrist.
40. Publicity Aqent.
41- Real Estate Broker.
42. Stock Broker.
43. Suraeon.
44. Surveyor.
45. Tax Counselor.
46. Veterinary.
Whenever a State of Californla license
is required to entitle a person to practice a
profession, the Director of Finance nay
require, before issu1.ng a license pursuant to
th1.S Section,
unexpired and
said applicant
California.
the applicant tn exhibit an
unrevoked license entitl1.ng
to practice in the State of
SECTION 12.
Sect1.on 6240 of the Santa Mon1.ca Municipal
Code 1.S anended to read as follows:
SECTION 6240. Services. Sell1.ng or
providing for pay any service which is not
otherwise specifically licensed by otr.er
orovlsions of thlS Code, or not specifically
exenpted from the pay~ent of licenses by this
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Code,
the annual license fee shall be S50.00
plus Sl.OO per each Sl,OOO or fraction
thereof of gross receipts in excess of
$50,000 and less than or equal to $100,000
and $3.00 per each Sl,OOO or fraction thereof
of gross receipts in excess of S100,000.
The services referred to herein
include,
followinq:
1. Advert~sing,
Relations Agency.
but
are
not limited to,
the
Public~tv or Pub!ic
2. Alar~.
3. AniMal Care or Leas~ng.
4. Auto Serv~ce Station.
S. Auto Wash.
6.
Auto
Wreckino.
A
per~it is
required prlor to 1icens~ng (see Sectlons
6120 and 6122).
7. Barber Shop, Beauty Parlor, or any
other establish~ent engaged in tonsorial
arts, Manicurlna, shaMpooing, hair-dressinq,
shaving or facial ~assage.
8. Bath Ho~se or Hath Treatnent. A
permit is requ2red prior to licensinq (see
Sections 6120 and 6122).
9. Bookkeepina.
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10.
1l.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Industrial
janitorial,
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Bookina or Theatrical Agent.
Brokerage, Stocks and Bonds.
Caterer.
Check Cas}'lino.
Collect~on Agency.
Connerclal Artlst.
Consultant.
Data processing.
Employment Bureaus.
Gardening and Landscaping.
House, Commercial Building,
Plant, etc., cleanlng, includinq
household furnishings and
winrow-w~shi~g serv~ces.
22.
21. Illustrator.
Institutions,
schools, or oersons
engaqed in the bus~ness of prcviolng for pay
instruction in such Matters as art, aV1ation,
be aut y
culture,
o:;el f-defense,
trac'1e or
bus~ness or other accoMplishment. A perMit
is reau1red for dance and physical culture
instruction prior to licensinq (see Sections
6120 and 6122). This o:;ub-sectlon shall not
apply to any gyMnaSiuM conducted in
connection with any private club or any
public or private school where other courses
of instruct~on are given.
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23.
Letter
Wr1t1ng
or
Aodressing
Agency.
24.
25.
required
Lithographer.
Masseur or Masseuse. A pernit is
prior to licens1ng (see Sections
6120 and 6122).
26 . ~1ort1c1an.
27. Odor Control.
28. Pr1vate Investiqation,
Security Aqency.
pa trol or
29.
30.
Public Stenographic Service.
~enta 1
of
Vehicles, ~railers,
Appliances, etc.
31. Repair service of any type when not
1n conjunction witl1 a business already
licensed.
32. Research Firn.
33. Storage or Warehouse Fac~11t1es.
34. Tailors or DressMakers.
35. Telephone Answering Service.
36. Ticket Agency.
37. Tree Care.
38. Typewriter Repair.
SECTION 13.
Sectlon 6'40A of the Santa ~onica Municipal
Code 1S renealed.
SECTIC'N 14.
Section 6116B is aoded to the Santa ~on1ca
Munic1pal Code to read as follows:
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SEC'!'ION 6ll6B.
Gross Recelpts.
(a) "Gross receipts," whenever usen in
this Article, sDal1 be construed as defined
ln thls Section unless fron the context a
dlfferent neaning is intended or unless a
different neaning 1S specifically def1nen.
(b)
"Gross receipts"
shall mean the
gross receipts for the fiscal year conmencing
on July I and ending on June 30 of the
following year and shall ~ean:
(1) The ~otal anount of the sale
price of all sales, the total aMount charged
or received for the perfornance of any act,
service or employnent of whatever nature it
May be, whether such service, act or
enploYJT1ent 1S done as part of or in
connection with the sale of goods, wares,
Merchandise or not, for whi ch a charae is
Made
or
credit
allowed,
1nclurlina all
receipts, cash, credits and property of any
k1nd or nature, any anount for which credit
1S allowed by the seller to the purchaser
without any deduction therefrom on account of
the cost of the property sold, the cost of
the Materials used, labor or service costs,
interest paid or payable, losses or any other
expense whatsoever.
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(2) The anount of any federal
manufacturers'
or
i~porters'
exc1se tax
1ncluded in the pr1ce of property sold, even
though the ~anufacturer or inporter is also
the retailer thereof and whether or not the
anount of such tax 15 stated as a separate
charge.
(3) In connection with a person
leasing or rentina property, all a~ounts paid
by a tenant to a lessor for the serV1ces
perforned, or materials used, or utilities or
facilities furnished by the lessor on the
prenises or in connection with the tenant's
use,
~ossession, or the r1ght to nossess the
property~ any receipts pa1d by a tenant to a
lessor for t~e use or possession of land, or
the rlght to use or possess land other than
that upon wn1cn the build1nq or structure is
located but which is used or possessed or is
available for use or possession by a tenant
for purposes relaten to the tenancy~ and all
anounts paid as prepaid rent.
(4) Receipts of any person
received as commisslons or fees earned, or
charges of any character made or compensation
of
any
character
rece1ved,
for
the
perfornance of any service bv sald person or
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any of said person's e~ployees and receipts
of any person received as partlal or full
co~pensat~on or relmbursenent for salaries,
payroll taxes, frlnge benefits and any and
all similar exoenses for persons who are
employees of said person and receipts of any
person received as partial or full
cOMpensation or rei~bursenent for equipment,
supplies, utilities, or other items or
serVlces acquired hv said person in that
person's nane and used or consuned in the
perfornance of services.
(c)
"Gross
receipts"
shall
not
include:
(1 )
The aMount of any federal
or with respect to retail
i~posed upon the retailer or
tax
sales
ir:tposed on
whether
upon the conSUMer and regardless of whether
or not the aDount of federal tax is stated to
custoners as a separate charge.
(2) Anv California state, city,
or city and county sales or use tax required
by law
purchase
to be
price
included in or added to the
and collected from the
consu~er or purchaser.
(3) Such part of the sales orlce
of any property previously sold and returned
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bv the purchaser to the seller wh~ch lS
refunded by the seller by way of cash or
credit allowances glven or taken as part
payment on any property so accepted for
resale.
as agents
recelved as
(4) Cash discounts allowed or
taken on sales.
(5) Rece~pts of persons acting
or brokers, other than receipts
COMMlssions or fees earneo and
other than net interest incoMe earned fron
narqin account
loans,
or cl'larges
conpensation
of
any
any
character
nade
or
of
character received for the perfornance of any
service as agent or broker: provlded,
however, any agent or hroker dealing in
stocks or other s~~ilar written instruernents
evidencing a right to participate in the
assets of anv husiness, or dealing in hands
or other evidences of indebtedness, who also
deals in such property as a principal, shall
include in gross recelpts the a~ount of
trading proflts resulting froro such dealings.
(6) Any refundable deposit which
1S returned to the depositor.
(7)
Gross
receints
frOM anv
activity for WhlCh a business license .....ould
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not be reauired under th~s Code and which is
rece~ved from incident~al activ~t~es of the
l~censee.
of
(8) That portion of the receipts
aeneral contractor licensed under
a
Sections 6212, 6212B. 6212C,
or 6212E which
represents payments to subcontractors
provided such subcontractors are l~censed
under the provis~ons of th~s Chapter and that
the general contractor furnishes the D~rector
of F~nance with the nanes and addresses of
the subcontractors and the aMounts paid to
each subcontractor.
(9) Gross rece~pts attributable
to sales within a single bus~ness entity when
no net gain results, including affiliated
corporations when one has at least an 80%
interest in the other, wholly-owned
corporations, and nartnerships and partners.
(10) Bad debts taken frOM oross
receipts reported during a prior tax year in
accordance with generally acceptable
accounting practices.
(11) Anyth~ng wDich the City of
Santa Monica nay not lawfully include bv
v~rtue of the Constitution of the Un~ted
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States or the Const~tution of the State of
California.
(d) tVhen, hy reason of the provisions
of the Consti tlltion of the tJni tee'!. States or
the
the
Constitlltion of the State of California,
business
license
fee
if.1posed by this
without there
Article
cannot
be
enforced
being an apportionment according to the
amount of buslnes 5 done 10 the ci t~7 of Santa
Monica, or in the State of California, as the
case nav be, apportlonnent rules shall be
established as ~ollows:
(1) The City Council from tiMe
to ~ime spall ~dont by resolution gener~l
quiaelines for apportionnent.
(2) The Director o~ Finance,
with the approval of the C1ty Attorney, ~ay
nake such rules and regulations for tDe
apportion~ent of the tax as are necessary an~
desirable
to overcone the constitutional
obJect~ons and which are consistent with the
general apportionnent guidelines adopted by
resolution of the City Council. The Director
of F~nance shall publish such rules and
regulat~ons once in a newspaper of general
circ111atlon within the City of Santa r-!onica.
Wlthln 10 days of the date of publication of
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such rules and regulations, any interested
person May f1le a request with the City Clerk
that the City Counc11 review the rules and
regulations so published.
The rules and
regulatlons shall be f1nal at the expiration
of the period for requesting review in the
event no request for review 1S filed, or in
the event of the filing of a request for
review, when the rules and reaulations ~ave
been adopted by the City Council.
(3) The apportionnent shall be
Made on the basis of payroll value and situs
of tang1ble property, general expense, or by
reference
to
any
other
method
of
apportionnent as wlll fairly determine the
anount of gross receipts derived froM or
attributable to engagin9 in business in the
City.
Gross receipts derlved fron isolated
or occasional transactions at places outside
the City but wlth1n t~e State of California,
where the licensee is not regularly encraged
in a course of husiness transactions shall be
deeMed gross receipts derived froM enqaqing
in business ln the City.
Gross receipts
derived
fron or attributable to sources
within the Cltv include ?ross recelpts fron
tanglble or intangible property located or
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havlng a situs in the City an~, when not
contr~ry to law, qross recelpts fro~ any
activities
of whether
carried on in the C~ty ~eqardless
carried on in interstate,
intrastate, or foreign COMMerce.
SECTION 15.
Sectlon 6127 ~s added to the Santa
Monica Municlpal Code to read as follows:
6209,
62 25A,
SFCTION 6127.
1983-84 Tax Rate Changes.
(a) The arnendnents to Sections
6212B, 62l2C, 6212E, 621<lA, 6225,
6226, 6236, 6240, ana 6240A contained
Operation
of
in the ordinance adopting this Section shall
be e==ective fer license year connencinq on
July 1, 19B3, and endinq on June 30, lQS4, as
follows:
(l) The
annual
license
fee
required by such Sectlons shall be deternined
on the basis of the gross reeelpts reported
~n license year 1983-84 in accordance w~tp
this Code.
(2) The
annual
license
fee
required by the predecessor of such Sp.ctions,
as effectlve prior to tpe date of of adoption
of the ordinance adoptinq th~s Seetlon, shall
be deterMined on the basis of gross receipts
26
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reported
1n
l1cense
year
1983-84
in
accordance with this Code.
( 3 ) The
a~ount deternined in
ac cordance wi th
Section and
subdlV1s~on
(a) (1) of this
determined 1.n
the aJ"'TOun t
accordance with subdivision
Sect1.on shall be totaled and
(a) (2) of this
divided by 2.
The aMount deternined 1n accordance with this
subdivis10n shall be the aMount of the annual
license fee for license year 1983-84.
(4) If a.person has previously
paid to the C1ty an annual license fee for
license year 1983-84 which is less than the
amount
deterrrtined
in
accordance
\'li th
subdivisJ.on
(a)(3) of th1s Section,
the
person shall pay
March 1, 1984,
difference between
to the City on or before
an a!Tlount equal to the
the annual license fee
deterMined 1n accordance with subdivision
(a)(3)
of this Section and SUCD anount
previously paid not including any penalties.
(5) ~f a person has previously
paid to the City an annual license fee for
license year 1983-84 which is qreater than
the anount deterMined in accordance w1.th
subdivis10n (a)(3) of this Section, the City
shall refund to t~e nerson on or before March
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1, 1984, an anount eaual to t~e difference
between
such
anount
previously
paid not
the annual
includ1.nq
license fee
any penalt1.es
determined in
and
accordance with
subdivision (a) (3) of this Section.
(6) For
license year 1983-84
only, and fron the effective date of th1.S
Section, in 11.eu of the penalties provided
for in Sectlons 6109 and 6112 of this Code, a
penalty of twenty-f1.ve percent (25%) shall be
iMposed on the anoun~ of the annual license
fee deter~lned in accordance with subdivis1.on
(a)(3) of this Section. No person shall be
ent1tled to a refund of any penalties paid
prior to the effectlve date of thlS Section.
(7) In andltion to the penalty
iMposed by subdivislon (a)(6) of t~is
Section, a penalty of twenty-five percent
(25%) shall ~e inposed on the a~ount of an~
annual llcense fee deternined in accordance
with
subdivislon (a)(3) of thlS Section
renalnlng unpald after March 1, 1984.
(8) The Director of Finance
shall mail to all persons subJect to an
annual license fee pursuant to the Sections
set forth in suhdivlsion (a) of this Section,
a stateMent settlng forth the deterMination
28
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of the annual license fee for license year
1983-84.
(b) The
Sectlons
described
in
subdivislon (a) of thlS Section shall be
fu 11 Y
effective,
wlthout
reqard
to
subdivlsion (a) of this Section and without
other proration or other reduction, except as
required by other provlsions of this Code,
for license year 1984-85 and each license
year thereafter.
62l2B,
6226 ,
(c) For those persons subject to the
annual llcense fee required by Sectlon~ 6209,
6212C, 6212E, 6219A, 6225, 6225A,
6236, and 6240, the speclal business
license fee required by Ordinance ~uMber 702
(CCS) or Ordinance Number 960 (CCS) shall be
deternined on the basis of the annual license
fee deternlned 1n accordance with subdivision
(a}(2) of thls Section.
(d) On or before March 1, 1985, the
City Manager shall prepare a written report
to the City Council describing the operation
of the tax rate changes nade bv the
anendnents
contained
in
the
ordinance
arlopting
this
Section,
includina
the
appropriateness and tax incidence of rates,
the revenue produced,
an~ recomnenoations
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concernlnq any adjust~ent In the rates. If
the revenues generated by the tax rate
chanqed nade by the a~end~ents contained in
ordinance adoptinq this Sectlon substantially
exceed projected revenues fron t~e changes,
the City Council shall consider a downward
adjustment of the rates.
SECTION 16. Section 6225A is added to the Santa Monica
Municipal Code to read as follows:
SECTION 6225A. Annual License Fee of
Regulated Utllitles.
thls Code an annual
~fuenever by virtue of
11cense fee 15 requirect
to be pald by any utility subiect to Article
XIII, Sectlon 19 of the Constitution of tne
State of Cal1fornia, the annual license fee,
notwithstanding any provision to the contrarv
contained in this Code, shall be S50.00
minimuM, plus $.60 per each Sl,onO or
fraction thereof of gross receipts in excess
of $50,000 and less than or equal to S250,OOO
and Sl.25 per each $1,000 or fraction thereof
of gross receipts in excess of $250,000.
SECTION 17. Any provision of tl1e Santa Monica r'~uniclpal
Code or appendlces thereto inconsistent with the provisions of
th1S ordinance,
to the extent of such lnconsistencles and no
further, are hereby repealed or ~odlfiect to that extent necessary
to affect the provlsions of thlS ordinance.
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SECTION 19.
If any section, subsection, sentence, clause,
or phrase of this ord1nance is for any reason held to 0e 1nvalid
or unconst~tutional by a dee1sion of any court of any co~petent
jur1sdietl.on,
such decision shall ~ot affect the validity of the
re~aining portions of the ordinance. The City Council hereby
declares that it would have passed th1s ordl.nance and each and
every
seetl.on,
subsection,
sentence, clause or phrase not
declared invall.G or unconstitutional without regard to whether
any portion of the ordinance would be subsequently declared
invalid or unconst~tutional.
SECTION 20. The Mayor sh~ll siqn and the City Clerk shall
attest to the passage of this ordinance. This City Clerk shall
cause the same to be publl.shed once in the orficial newspaper
with1n 15 days after its adoption.
The ordinance shall becone
effective after 30 days from its adoption.
APPROVED AS TO FORM:
,~ lM.. \0'
Robert M. Myers
City Attorney
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ADOPTED AND APpqOVED THIS
8th
DAY
OF :\Iovember
, 1 983 .
,)~/~
MA v o'rt PRO - TliMPORE
I HEREBY CER7IFY TK~T THE FOREGOI~G ORDINANCE.
NO. 1289
(CC5). WAS DULY AND REGULARLY I~T~ODUC~J ~~ ~
MEETING OF THE CITY COUNCIL ON THE 25th
DAY OF October
1983; THAT THE SAID OROINANCE WAS rHEREAFTER DULY ADOPTEJ
AT A MEETING OF THE CITY COUNCIL ON THE 8th DAY OF \ovember
1983 BY THE FalLOWING COUNCIL VOTE:
AYES:
COUNCILMEMBERS: Conn, Jennings. Press and Zane
NOES:
COUNCILMEMBERS: Epstein and Reed
ABSENT:
COUNCILMEMBERS: Edwards
A8STAI~:
COUNCILMEMBERS: None
ATTEST:
~~~~~
CITY CLE:RK