SR-5-A (12)
/
(.
,.
--
e
20'8-0/5
s-fJ-
...
CA:RMM:rm6100B
City Councll Meetlnq 10-25-83
OCT 25 1983
Santa Monlea, Callfornia
STAFF REPORT
TO: Mayor and City Councll
FROM: City Attorney
SUBJECT: Business License Tax Ordinance
In connection with the aooption of tne 1983-84 Budget, the
City Councll directed the City Attorney to prepare an oralnance
making varlOUS changes in the hUSlness llcense tax structure of
the Clty of Santa Monlca.
In response to tpis olrection, the
Clty Attorney presented to the Clty Councll at lts September 27,
1983, Meetlng a proposed ordlnance ~aking various changes in the
business llcense tax structure.
Following a public hearing,
conSloeratlon of the ordlnance was continued to October 25, 1983.
On October 18,
1983, the Clty Councl1 conducted a study
session on the proposed changes to the business llcense tax
structure.
The acconpanYlna ordlnance reflects tpe varlOUS
revlsions discussed by the City Manaaer dllrlng tne studv spssion.
GF,NERAL OVERVIEW
Wlth the adoptlon of the 1983-84 Budqet, the City Council
endorsed bUslness llcense tax changes desiqned to lncrease
current flscal year revenues by $1.3 Ml11ion.
The Clty Councll
has prevlously received a variety of reports summarizinq the
r-ff
1
OCT 2 5 1983
..
-
e
t .
proposed business llcense tax chanoes. The followlnq summarlzes
the proposed changes:
1. Tax rates will change, not categories for licenslnq.
(The only exceot1on oiscussed helow 16 to chanqe the category of
regulated utllltles to re~pond to a constltutional obJection
ralsed by one utl1lty. See d16cussion in connectlon with Section
6225A. )
2.
1984-85.
The tax chanqes wl1l not be fully effect1ve until
For fiscal year 1983-84, taxes will increase or
decrease by one-half the change requ1red by the new rates, to be
collected in special bll1lnq in early 1984.
3.
Iod1vHlual
firrns
may realize tax decreases,
tax
lncreases, or no change 1n tax payments.
About one-th1rd of the
approx1mately 15,600 llcensees in the City of Santa Mon1ca will
not re affected by the tax changes, since they are 10 categories
not covered by the proposed ordinance.
4. Tax
]urlsdict1ons
Los Angeles.
rates are lower than or
of the clt1es of Beverly
equal to the comparison
Hills, Culver Clty, and
5. The tax rate chancres will not result ln 1ncreased
assesSMents under Ordlnance Number 702
(ccs)
for businesses
located 1n the Downtown Parklng and Buslness ImproveMent Area or
Ordlnance NUI'1ber 960 (CCS) for bus1nesses locaten in t_he Montana
Avenue bUs1ness promotlon area.
2
r
,
e
e
The proposed ord~nance chanqes the tax rate, generally
TAX RATE CHANGES
determined on the baS1S of qross rece1pts, for six aeneral
categorles of licensees:
Currently,
1. Profess1ons, Occupations, and Serv1ces.
the business license tax pald by professlons,
MlnimUM
occupations, and serVlces 1S:
'T'ax Rate
$20
$.65 per Sl,OOO > $6,000
MaxiMuJ"'l
$2,000
HlnlMUI'1
The revised tax rate containeo in the ord1nance lS:
Jl,1axirnum
S50
Tax Rate
$1 per $1,000 > S50,OOO <= $100,000
$3 per $1,000 > $100,000
~one
ApprOXlwately 3,399 bUSlnesses wl11 be affected by the
proposed amendment.
The Munlcipal Code provisions amended to
effectuate thls change are Sectlons 6236, 6240, ana 6240A.
2. Retail Sales.
Currently,
the business license tax pald by retail sellers
lS:
HinlIDuPl
S25
Tax Rate
$.60 per $1,000 > $10,000
MaximuM
The revlsed tax rate contalneo In the ordlnance is:
$2,000
r>linirouIll
$50
Tax Rate
S.60 per Sl,OOO > $50,000 <= $250,000
Sl.25 per Sl,OOO > S250,OOO
3
MaXlI'lUIfl
!,Tone
...
It
e
Approximately ~,120 DUS1nesses will he affected by the
proposed amendMent.
The Hunicipal Code provision aP1.ended to
effectuate this chanae 18 Section 6225.
3. Manufacturers and ~lliolesalers.
Currently,
the bUS1ness license tax paid hy manufacturers
and wholesalers is:
Minimum
Tax Rate
Maximum
825
$.50 per $1,000 > $10,000
$5,000
The revlsed tax rate contalned in the ordlnance lS:
M1n1mum
Tax Rate
MaX1JTlUM
$50
$.50 per $1,000 > $50,000 <~ $250,000
Sl.OO per Sl,OOO > $250,000
~Tone
ApprOX1P1.ately 461 businesses w1ll be affected by the
proposed amendment.
'I'he ~1un1clpal Code prov1s1on aMenden to
effectuate thls change 15 Sect10n 6226.
4. AutOttlot1ve Dealers.
Currently,
the hus1ness 11cense tax pa1d by autoMot1ve
dealers is:
M1nilTlum
Tax Rate
Maximum
S100
$.50 per $10,000 > $100,000
$1,000
The rev18ed tax rate contained ln the ordlnance 1S:
H1nimuPl
'1'ax Rate
Max1mum
SlOO
$1. 25 per Sl,OOO
82,500
(The maX1mum tax would be 1ncreased to $5,000 in f1scal year
1985-86 and each year thereafter.)
4
It
e
Aoproximately
46 businesses will he affected hy the
proposed a~end~ent.
The r1unic1pa1 Code provision amended to
effectuate th1s cnange is Sect10n 6209.
5. COMMerC1al Rentals.
Currently,
the bus1ness llcense tax paid by co~erc1al
rental llcensees 1S:
H1nimum
Tax Rate
MaXlmurn
$10
$.75 per $1,000 > $10,000
None
The rev1sed tax rate contained 1n the ord1nancp 1S:
Mln1mum
Tax Rate
MaxiPlum
S50
$1 per Sl,OOO > $50,000 <~ $100,000
S 1.25 per $1,000 > $100,000
None
Approx1mately 740 businesses w1l1 be affected by the
proposed a~end~ent.
'T'he Hun1c1pal Code prov1s1on amended to
effectuate thlS chanqe 18 Sectlon 6219A.
6. Contractors ann Subcontractors.
Currently, the hus1ness license tax pain by contractors and
subcontractors Varles depending upon the type of bUSlness. The
following SUI'1JTlarlZeS the current tax structure:
M1nimuJTl
Tax Rate
MaX1mUPl
$40 - SlOO
8.65 per 81,000 > 820,000
None
The revised tax rate conta1ned in the ordinance 1S:
M1ni~nm
Tax Rate
MaX1mUJTl
$50
$1 per $1,000 > S50,000 <= $100,000
$1.25 per $1,000 > $100,000
!'~one
AnprOX1Mately 4,371 buslnesses will be affected by the
5
e e
proposed a~end~ent. The Munlc1pal Code prov1s1ons aMended to
effectuate th1S chanqe are Sectlons 62l2B, 62l2C, and 62l2E.
SECTION BY SECTION ANALYSIS
The
following
lS a sectlon by section
delet1ons, and add1tions
analysis of the
contained 1n the
proposed
amendnents,
accompanY1ng ordinance:
Bectlon 6106.
Section 6106 has been anended to suhst1tute
the D1rector of Flnance for the Clty Clerk. In add1t1on, a
provision has been added substitutinq the Director of F1nance for
the C1ty Cler~ throuqhout Article VI of tne Munlclpal Code.
Finally, the fee for lssuina a duplicate llcense has been
lncreasea fron S.50 to $2.00.
Section 6107. Seetlon 6107 has been anended to substltute
the Director of Finance for the City Clerk.
Beetlon 6116.
Seetlon 6116 has been aMended to substitute
the Dlreetor of Flnanee for the Clty Clerk~
to require that
written statements of licensees be in a prescrlbed format witn
specific docuMentation; and to tax businesses w1th mu1tJple
locations in the Clty on the basis of total gross recelpts at all
locat1ons rather than taxinq each locatlon separately.
Sectlon 6116B. Section 61l6R has been added to provlde a
definltlon of gross recelpts. The definition of aross receipts
lS consistent with the deflnition of qross recelPts in the Clty
6
e
e
of
Los
Anqeles
and
surrounding wunic~pal~t~es.
Var~ous
exclusions fro~ aross recelpts are set forth 1n subdivlsion (c).
As has been previously dlscussed,
the ell~~nation of
max1muw taxes lS llkely to raise issues of apportionment.
Issues
of apportlonment arise when certain
receipts from actlvitles generated from
the City.
Bectlon 6116R provldes that the Clty Councl1 shall adopt
businesses have gross
hoth wltnin and without
general apportionment standards by resolution.
In addition, t}1e
Section provldes that the Pirector of Flnance, w~th the approval
of the C~ty Attorney, nay adopt rules and requlat10ns relating to
apportlonment. A procedure for Clty Councl1 review of the rules
and regulations 1S contalned in the Seetlon.
Beetlon 6127. The purpose of this Seetlon lS to describe
the operation of the tax rate changes implemented by the
accompanying ordlnance.
As the Bectlon indicates, buslnesses subJect to the
changes wllJ
recelve 1n Janauary 1984 a special stateMent
provlding theM wlth the amount of add1tional taxes owed or the
anount of the refund resultlng fron the changes made by the
accowpanying ordlnanee. The additlonal taxes or refunds will be
calculated by totallng taxes under the old tax structure wlth
taxes under the new tax structure, with the total divided by two.
ThlS w1lI result ln an effectlve 1983-84 bUSlness 11eense tax
Wh1Ch is hiaher or lower than the oln. tax by an a~ount equal to
one-half of the aMount of the changes implemented in the
acconpanYlng ordlnance. (For exa~ple, if the tax under the old
7
e
e
law was $50.00 and the tax under the new law was SlOO.OO, the tax
for the current year would be $75.00.)
In addition, this Sectlon lS desloned to ensure that
businesses in the Downtown Parking and Ruslness Improvement Area
do not pay an lncreased special business llcense tax pursuant to
Ordinance KUrlber 702 (CCS) ln addltlon to any increased bUS1ness
llcense tax.
Under Ordlnance 702
(ccs), a spec1al business
llcense tax lS assessed ln the Downtown Park1no and Business
I~provement Area. The spec1al buslness llcense tax 1S calculated
at five t1mes the regular hUS1ness license tax.
Section 6127 provldes that the business license tax, for
purposes of determinlng the speclal business llcense tax required
by Ordinance 702 (CCS), 18 the buslnes8 license tax determlned hy
the law 1n effect on July 1, 1983. Accordingly, the amount of
the special bUSlne8S ]lcense tax will not increase or decrease
702 (CCS)
changes in the tax rate conta1ned in the accompanY1nq
In the future, lt may he des1rable to anend Ordinance
to change the spec1al bU51ness license tax rate set
wlth the
ordinance.
forth
in that ordlnance.
T-Iowever,
since a resolution of
1ntentlon 1S reauired before Ordinance Pumber 702 (CCS) can he
amended,
Sectlon 6127 prov1des an interin solution to implement
the City Councl1's obJect1ve of not providing an 1ncreased
spec1al business license tax ln the Downtown Parkinq and RUS1ness
Improvement Area.
8
It
e
The Clty has also establ1sned by ordlnance business
pro~otlon areas. See Ordinance Nu~ber 725 (CCS) (Downtown);
Ordinance Nunrer 960 (CCS) (Montana Avenue).
The Downtown buslness promotion area neternines the amount
of the speclal assessnent on the basis of a percentage of taxable
sales; accorolngly, the changes l.n the amount of t'be business
license tax wlll not change asseSSMents for th1.S proMotlon area.
The Montana Avenue business promotlon area oetermines the
a~ount of tne special asseSSMent on the basis of 25% of the
business l1.cense tax with a mlnlmUM of S25 and a naX1.Mum of $200.
Because the amount of the speclal asseSSMent is tled to the
bus1.ness llcense tax, Sectlon 6127 provldes that the business
llcense tax, for purpose of determlnlng the spec1.al business
license tax required by Ordlnance Nu~ber 960 (CCS), is the
buslness llcense tax oetermlnen by the law in effect on July 1,
1983. Accordinqly, the a~ount of the special business license
tax for the Montana Avenue business proMot1.0n area will not
lncrease or decrease wlth the changes In the tax rate contalned
ln the acconpanY1.nQ ordinance.
Flnally, Sectlon 6127 provides in suhnlvlsion (d) that the
Clty Manaqer will prepare a report for the Cltv Cauncll on or
before June 1, 1985, describlnq the operatlon of the changes in
the tax rate structure, the approprlateness and tax lncidence of
rates, the revenue proouced, and recommendations concerning any
adJustments In the rates.
9
e e
Sectlon 6209. Bectlon 6209 has been a~ended to chanae the
tax rate for auto and trailer sales husinesses frow $100 minimum
plus S.50 per each $10,000 of gross receipts in excess of
$100,000 up to a ~aximum tax of Sl,OOO to S100 ~inlmum or $1.25
per each $1,000 of gross receipts, whlchever lS greater, up to a
~aX1num of $2,500 until 1984-85 and $5,000 10 1985-86 and
thereafter.
Section 62128, 6212C, and 6212E. Currently, contractors
and subcontractors, depend1ng on the type, pay a mlnlMUM llcense
fee ranglng froM 540 to 5100. In addition, a qross receipts tax
of S.65 is leV1ed on each Sl,OOO 1n excess of $20,000. The
proposed ord1nance aMends these sections to provlde for a unifo~
minimuw tax of $50 plus $1.00 for each $1,000 of gross receipts
1n excess of $50,000 and less than or equal to S100,000 and $1.25
for each SI,OOO of aross recelpts In excess of SlOO,OOO.
Section 6719A. Sect10n 62l9A has been aMended to change
the tax rate for cOMmercial rental bUS1nesses from $10.00 ~lnimum
plus 8.75 per each Sl,OOO of gross receipts in excess of SlO,OOO
to S50 minimum plus $1.00 per $1,000 of gross receipts ln excess
of $50,000 and less than or equal to S100,000 and $3.00 per
$1,000 of gross recelpts in excess of $100,000.
Seetlon 6223.
Sectlon 6223 establishes the tax rate for
loans, buildlng and loans and savlngs and loans businesses at a
flat rate of S100.
In the earlier verSlon of thlS ord1nanee,
th1S Seetlon was aMended to increase the tax by taxinq cross
10
e
e
recelpts. In response to varlOUS concerns,
amendment to this Section has been eli~inated.
the proposed
Section 6225.
Bectlon 6225 has been amended to change the
tax rate on retall sellers from $.60 per $1,000 of qross reeelpt~
ln excess of SlO,OOO up to a ~aX1Mun tax of $2,000 to $50.00 plus
$.60 per $1,000 of gross recelpts In excess of $50,000 and less
than or equal to S250,OOO and $1.25 per Sl,OOO of aro~s receipts
ln excess of $250,000 with no rrtaximuITl tax.
Beetlon 6225A.
At the present tl~e,
certain cross
and service
rate.
In response
the professional,
to the proposed
will result in
recelpts of
occupational,
chanqes ln
utilltles have
been taxed at
the tax rate
structure,
wh 1ch
professional, occupatlonal and serVlce llcensees paY1ng more than
reta11 and Manufacturlng 11censees, General 'J'elephone COJ11pany
contacted the City and lndicated that a category change was
appropriate.
Artlcle XIII, Bectlon 19 of the Constitutlon of the State
of Callfornla provldes that the City may not tax utilities ln an
aITlount "wn1ch differs from that imposed on mercantlle,
rnanufactur~nq,
and other bus1.ness corporations."
Gi yen tP1S
constitutional prOV1Slon,
the C1ty Attorney recommends that
utll1.tles subject to this const1.tutional provlslon be taxed at
the rate qenerally appllcable to retall sellers. ny belng placed
in thlS category, WhlCh was recommended by General 'J'elep~one
COITlpany, utilltles wlll be taxed In conformity wlth the taxes
assessed on tpe overwhelmlng number of buslnesses falling within
11
e
e
the deflnitlon of mercantlle,
~anufacturlng, and other buslness
corporatlons.
See City of LlverMore v. Pacific Gas & Flectric
Co., 120 Cal. App. 3d IDOl, 175 Cal. Rptr. 100 (1981).
Section 6226. Sectlon 6226 has heen amended to chancre tne
tax rate on manufacturers-wholesalers from $.50 per Sl,OOO of
gross recelpts ln excess of $20,000 up to a MaXlmu~ tax of $5,000
to S50.00 plus $.50 per Sl,OOO of gross receipts In excess of
$50,000 and less than or equal to $250,000 and $1.00 per $1,000
of gross recelpts ln excess of S250,000 with no MaXlmum tax.
Sectlon 6736. Sectlon 6236 has been amended to change the
tax rate on professionals from $20.00 Mlnimum plus $.65 per
$1,000 of gross receipts ln excess of 86,000 up to a maximum tax
of S2,OOO to S50.00 Minimum, plus Sl.OO per $1,000 of Gross
recelpts ln excess of $50,000 and less than or equal to S100,000
and $3.00 per $1,000 of gross receipts ln excess of S100,000,
wlth no maxiMUM tax.
The new sectlon also suhstitutes the
Director of Finance for the City Clerk.
Section 6240.
Beetlon 6240 has been amended to chancre the
tax rate on services businesses froP1 $20 roinimum plus $.65 per
$1,000 of gross recelpts in excess of S6,OOO to $50.00 rrtiniMurn,
plus $1.00 per Sl,OOO of gross recelpts in excess of S50,000 and
less than or equal to $100,000 and $3.00 per $1,000 of gross
receipts in excess of 8100,000, wlth no IT'aximum tax.
Bectlon
6240A.
Sectlon 6240A ~as been repealed to
e1iMlnate the maXlmUM tax liMlt of $2,000 on services businesses.
12
e
e
Other techn1cal c~anaes have been made in Many of the
sect10ns
addit10n
d1scussed
above.
These technical
of new
subdivisions,
renumbering
changes include
of subdiv1sions,
eliMinat10n of sex 1st lanquage, and conform1tv of provisions to
more recent aMendments of the Municipal Code.
REcm1MEFDATI0N
It 18 respectfully recoMMenned that the accompanY1ng
ord1nance be introducted for first read1ng.
PREPARED BY:
Robert M. Myers, City Attorney
13
e
e
CA: RMM: rm6100R
City Council Meetlnq 10-25-83
Santa Monica, Callfornla
ORDINANCE ~~MRER
(Clty Council series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AMENDING SECTIONS 6106, 6107, 6116, 6209,
6212B, 6212C, 6212E,
6219A, 6225, 6226, 6236, AND 6240
OF THE SANTA ~ONICA MillJICIPAL CODE,
REPPALHm SECTIOt--T 6240A OF THE
SANTA MONICA MillTICIPAL CODE,
~TD ADDING SECTIONS
6l16B, 6127, AND 6225A
TO THE SA1ITA MONICA MlmICIP~L CODE
RELATING TO THE BllSINESS LICENSE TAX
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES OPDAIN AS
FOLLOWS:
SEC'TIOF 1.
Section 6106 of the Santa Monica ~unicipal Code
is aMended to reac as follows:
SECTION 6106. Dlrector of Finance to
Issue.
(a) The Licenses required by thlS Code
shall be issued by the Director of Finance
and shall state thereln the amount thereof,
the period of tlMe covered thereby, the name
of the person to whom lssued, the buslness
licensed
and
the locatlon or place of
bUSlness where such buslness is to be carrled
on.
1
e e
(b) No 11cense granted or issued under
provlslons of the Code shall be in any manner
transferred or asslgned.
(c) The Dlrector of Flnance shall Make
a charge of S2.00 for each duplicate llcense
issued under the provisions of thlS Code
Wh1Ch has been lost or destroyed.
(d) In no case shall any mistake made
by the Dlrector of Flnance 1n stating the
amount of a llcense prevent or preJudice the
collect1on by the City of the aRount actually
due froM any licensee.
(e) ~fuenever 1n thls Article the City
Clerk 1S charged w1t~ the respons1h111ty of
processing, 1ssuing, or admin1stering a
license or permlt, the reference to the C1ty
Clerk shall be deemed a reference to the
D1rector of F1nance.
SECTION 2.
Section 6107 of the Santa ~onica Municipal Code
lS aMended to read as follows:
SECTION 6107. Term of L1cense.
(a) All license fees shall be paid in
advance 1n legal money of the Un1ted States,
at the office of the D1rector of F1nance. A
separate license must be obta1ned for each
branch establlshment or separate place of
bus 1nes s,
1n which bUS1ness is carried on,
2
e
e
and eacn
obtalnlnq
descrlbed
locatlon
license shall authorize the party
lt to operate only tl1at huslness
ln such llcense, and onlv at the
or place of business which is
indicated thereby.
(b) Fvery weekly license s~all expire
at midnlght on the Sunday next succeedinq its
day of lSSUance.
(c) Every monthly llcense shall explre
at ~ldnlght of the last dav of the Month
nuring WhlCh it was lssued.
(d) Every annual llcense shall expire
at mldnlght on the June 30th next succeeding
its issuance unless specified otherWlse in
this Code.
(e) In the event a bond is required no
llcense shall be lssued until said bond has
been flIed with the Dlrector of Flnance.
(f) No greater or lesser amount of
money shall be charged or received for any
11cense than is provlded in thlS Cone, and no
license shall be sold or issued for any
Derlod of tlme other than lS provided in thlS
Code.
SECTION 3.
Seetlon 6116 of the Santa ~fonica lVIunJ_Clpal Code
1S amended to read as follows:
3
e
e
SECTION 6116.
Statement of LJcensee.
(a) In all CRses where the a~ounr of
11cense to be palo by any person lS haseo
upon the amount of receipts, or sales or of
business transacted,
or upon t~e nUMber of
persons employed or upon the nUMher of wagons
or other vehicles, used, or upon the amount
of the maX~MU~ admiss10n fee charged, or upon
the number of tables or cha1rs used for any
gaMe or upon the nUMber of units in any
buildlng or upon the Aea~inq capaclty, such
person, hefore obtainlng a license for such
bus1ness and with1n tnlrty (30) days after
the beqlnning of eac~
file with the Director
llcense perio~, shall
of Flnance a wrltten
statement 1n the form requlred by the
Director of F1nance, supported by such
documentation requested by the Dlrector of
Flnance, showlng the total amount of receipts
or sales or of bUS1ness transacted durlng the
preceding 11cense year, or the number of
wagons,
or other vehicles used or the amount
of the Maximum admisslon fee charged, or tne
number of unlts contalnec'l 1n such building,
or the seating capacity at the date of SUCD
statement.
4
e
e
(b) If two or More closely related
buslnesses are carrled on at the same
locatlon and under the same ownership and the
ruslnesses are on a gross receipts basls, the
gross recelpts shall be reported together and
the greater of the rates applicable will be
used for the compllation of the annual
llcense fee. vfuen two or more non-related
buslnesses are operated at one locatlon,
separate 11censes shall be requlreQ.
(c) If any person 18 requlred to have
two or more licenses subJect to a llcense fee
under Sections 622S, 6225~,
6226, 6236, or
6240 of thls Code, the person shall pay, in
additlon to the rrini!T1um annual license -Fee
for each llcense, a single llcense fee for
all licenses computed on the baS1S of the
total gross recelpts of all 11censes.
(d) No stateMent filerl pursuant to
thlS Sectlon shall be concluslve upon the
City or upon any offlcer thereof as to tne
matters therein set forth, and the same shall
not preJudice the rlght of the Clty to
recover any amount that May be ascertained to
be due from such person 1n addition to the
amount shown by such state~ent should lt be
found to be 1ncorrect.
5
e
e
(e) If any person required to f~le any
statement pursuant to thlS Sectlon shall fa~l
to do so, such person shall he requ~red to
pay a license fee at the max~mum rate herein
prescribed for t}-le bUS1ness carr~ed on by
such
person
and shall he guilty of a
th1s Code and shall be
v1olat1on of
punishable therefor as hereinafter provided.
(f) In any case where the
11cense lS to be 1ssued for a
f~rst
newly
established bus1ness,
t~e Minimum tax for
that
the
type of business shall be pa~d, and at
termination of the l~cense perlod dur1ng
wh~ch the operation of such bus~ness is
cOJT11Tlenced, the
period shall be
manner provided
license
for such license
adJusted
by this
and paid in the
Section for the
ascerta1ning and paY1ng of l~censes for otper
license per~ods, after deductlng frOM the
amount so found to be due the aJl10unt pald at
the time such first l~cense was issued.
(g) The correctness of any statement
flIed pursuant to this Sect10n shall be
subJect to aud1t and verif~catlon by the
D1rector of Flnance, who ~s hereby autporized
and empowered to ~nspect and audit the books
and records of any and all persons licensed
6
e
e
to carryon any bUSlness spccifieo in this
Code.
this
(h) Any statement flIed pursuant to
Sectlon shall be s19ned and shall
contain the followlna:
"I declare, under penalty of makina a
false declaratlon,
that I aw authorlzed to
~a~e thlS state~ent and to the best of my
knowledae and belief it is a true, correct
and complete statement, made in qood falth
for the period stated."
For naking a false statement or
declaratlon the person slqnlng the stateMent
shall be guilty of a ~lsdemeanor.
(i) Any statement filed pursuant to
thlS
Bectlon
shall
be confidential in
character and shall not be subject to public
lnspectlon. It shall he tDe duty of the
Dlrector of Flnance to preserve and ~eep the
statements
not becoMe
charged by
thlS Code.
so that the contents thereof May
known except to the persons
law with the administration of
SECTION 4.
Seetlon 6209 of the Santa Monlca Munlclpal Code
15 aMended to read as follows:
7
It
-
SECTION 6209. Auto and Traller Sales.
BUYlno,
selling or offering for sale new or
used automobiles,
trucks,
trailers, house
trallers, or campers, including parts and
repairs, the annual llcense fee shall he
SlOO.OO or $1.25 per each $1,000 or fraction
thereof
of gross receipts,
whlC'hever lS
greater. In no event shall any license fee
required to be paid pursuant to thlS Section
be in excess of 52,500 for license year
1983-84, $2,500 for llcense year 1984-85, and
$5,000 for license year 1985-86 and each
license year thereafter.
SF:CTIOF 5.
Sectlon 6212B of the Santa Monica Munlclnal
Code lS amended to read as follows:
SECTION
6212R.
Sub
or Specialty
Contractors and RUlldlno Trades. Enqaging in
any of the ~ollowing listen buslnesses, tne
annual 11cense fee shall be $50.00.
1 . Awnlnq.
2. BOllers,
not water hearting, steam
flttlng.
3. Burglar Alarm.
4. Cabinet and mill work.
5. CeMent and concrete.
8
..
e
e
6. Electric slgns.
7. Elevator lnstal1atlon.
8.
Excavating,
grading,
trenchl.ng,
pavlng, surfaclng.
9. Fire protectlon en~lneerlng.
10. Flooctllght service.
11. Floorlnq.
12. Glazing.
13. Heating and air condltloning.
14.
House
and
huildlng Moving or
wrecking.
IS. Insulatlon.
16. Landscaplng.
17. Lathinq.
18. !'1asonry.
19. Mlscellaneous.
20. Ornamental ~etals.
21. Painting and decoratino.
22. Pest control.
23. Plasterl.ng only.
24. Refrigeration.
25. Roofing.
26. Screens.
27. Sewer (Sl,OOO surety bond).
28. Sheet metal.
29. Slgns.
9
e
30.
31.
32.
33.
34.
35.
e
Sprinklln9.
Steel.
Tile (cera~ic and mosaic).
Weather stripping.
Vlelchng.
Well drlllinq.
Lathlnq and plasterina comb~ned and w~o
hold a state 11cense for both and who uses
hlS or her own eMployees to do both may be
issued one license coverlng both businesses
for the annual 11cense fee of $50.00.
SECTION 6.
Section 6212C of the Santa Monica
Municlpal Code lS amended to read as follows:
SECTION
contractors.
followlng
6212C.
Subcontractors,
Engaging
in
any
of the
11sted
bus~nesses,
the annual
license fee shall he S50.00.
1. Plumbinq Contractor.
2. Heatinq Contractor.
3. Electrlcal Contractor.
SECTION 7.
Sectlon 6212E of the Santa Monlca
Munlcipal Code is amended to read as follows:
SECTION
6212E.
Gross Receipts ln
Seetlon 6212,
Excess of $50,000. Any person oescribed in
62l2B, and 6212C whose gross
recelpts from work performed ln the Clty of
10
e
e
Santa Monica exceed S50,000 ln additlon to
the fee herelnabove set forth,
shall be
requlred to pay an addltional annual license
fee of $1.00 per each $1,000 or fraction
thereof
of gross reeelpts ln excess of
$50,000 and less than or equal to $100,000
and $1.25 per each $1,000 or fraction thereof
of gross recelpts ln excess of S100,OOO.
SECTION 8.
Section 6219A of the Santa Monlca Hunlcipal
Code is a~ended to read as follows:
SECTIO~ 6219A.
COflmerclal Rental.
Any
person, group, aSRoelatlon, partnershlp, fir~
or corporatlon, whether as the owner or as
t~e agent for the owner, who rents, leases or
has avallable for rent or lease, one or more
co~ercial
bUlldlnq,
industrla1 bUlldinq,
offices or offlce building,
land or vacant
lots that May be utlllzed for commerical,
lndustrial or offlce uses, whether at one or
multiple locatlons,
the annual 11cense fee
shall be $50.00 plus $1.00 per each $1,000 or
fraction thereof of gross recelpts in excess
of $50,000 and less than or equal to $100,000
and Sl.25 per each $I,OOO or fraction thereof
of qross receipts in excess of $100,000.
SECTION 9.
Section 6225 of the Santa Monlca Munlclpal Code
is amended to read as follows:
11
e
-
SECTION
6225.
Merchants-Retail.
Manufacturlng ann selllng anv Goons, wares or
merchandise at retall or selling any goods,
wares
or merchandlse at retail and not
otherwise
speclflcally llcensed by otper
provisions of thlS Code, or not specifically
exempted from the pa~ent of llcenses by this
Code,
the annual license fee shall be $50.00
mlniMum,
plus
$.60 per each $1,000 or
fraction thereof of gross receipts ln excess
of SSO,OOO and less than or equal to $250,000
and $1.25 per each SI,OOO or fractlon thereof
of gross recelpts ln excess of $250,000.
SECTION 10.
Section 6226 of the Santa Monica Municlpal
Code lS amended to read as Tollows:
SECTION
6226.
Manufacturers-
Hholesalers.
Manufacturlng and selllnq any
goods, wares, or Merchandlse at wholesale or
selling
wholesale
goods, wares,
or Merchandise at
and not otherwJ_se specifically
llcensed by other provisions of this Code, or
not speclflcally exeMpted from the payment of
licenses by thlS Code, the annual license fee
shall be $50.00 ~lnlmu~,
plus $.50 per each
$1,000 or fraction thereof of gross recelpts
ln excess of $50,000 and less than or equal
to $250,000 and $1.00 per each $I,OOO or
12
~
e
e
fractlon thereof of oross recelpts in excess
of $250,000.
SECTION 11.
Section 6236 of the Santa Monlca Municipal
Code 18 amended to read as follows:
SECTION
6236.
Professional.
Any
person, qroup, association, partnersDlp, firn
or corporat~on engaoed in a professlon,
voeatlon or call1ng, llsted hereinafter or
not speciflcal1y provldeo for In any other
Sectlon of this Code, the annual license fee
shall be S50.00 plus Sl.00 per each $1,000 or
fraction thereof of gross recelpts In excess
of 850,000 and less than or equal to $100,000
and $3.00 per each SI,OOO or fraction thereof
of gross recelpts ln excess of $100,000.
The professions, voeatlons or callings
referred to herein lne1ude,
11mited to the fo11owlng:
but are not
l. Accountant.
2. Appraiser.
3. Archltect.
4. Assayer.
5. Attorney-at-law.
6. Auditor.
7. 13acterlologist.
8. Bond Broker.
13
_ e
9. Certlfled Public Acountant.
10. Chern st.
II. Chlropodist.
12. Chlropractor.
13. C1Vl1 Englneer.
14. Co~erclal Artlst.
15. CO~~lSnlon ~erchant.
16. Credlt Report.
17. Decorator (Interior).
18. Dental ~echnlclan.
19. Dentlst.
20. Deslqner.
21. Doctor-Medical.
22. Draftsnan.
23. Drugless Practltioner.
24. Electrical Engineer.
25. Electrologist.
26. Geologist.
27. Hypnotlst or Hypnotherapist.
28. Insurance AdJuster.
29. Insurance Broker.
30. Landscape Architect.
31. Manufacturer's Agent.
32. Mechanlca1 Fngineer.
33. Mlnlnq Enqlneer.
34. Ocullst.
14
. e
35. Optician.
36. Optometr1st.
37. Osteopath.
38. Physlc1an.
39. Psych~atr~st.
40. Public~ty Agent.
41. Real Estate Broker.
42. Stock Broker.
43. Surgeon.
44. Surveyor.
45. Tax Counselor.
46. Veterlnary.
~fuenever a State of California license
1S requ1reo to entitle a person to practice a
professlon,
the D1reetor of Finance may
require, before issuing a llcense pursuant to
this Sect lon,
the applicant to exh~nit an
unexp1rea ana unrevokeo license entltling
sald applicant to practlce in the State of
Californ1a.
SECTION 12.
Sectlon 6240 of the Santa r-10nica Municlpal
Code 18 amended to read as follows:
SECTION
6240 .
Serv1ces.
Selling or
,,,hich 1S not
provldlng for
pay any serV1ce
otherwise
speciflcally licensed by other
provisions of thlS Code, or not speciflC'ally
exe~pted from the payment of licenses by th1S
15
e
e
Code,
the annual llcense fee shall be $50.00
Sl.00 per each Sl,OOO or fraction
plus
the reo f
of gross recelpts In excess of
$50,000 and less than or equal to SIOO,OOO
and $3.00 per each $1,000 or fraction thereof
of qross receipts ln excess of $100,000.
The
serVlces
referred
to
hereln
lnc1ude,
but
are
not llmlted to,
the
following:
1.
Advertislng,
Publlcity or Public
Relations Agency.
2. AlarJTI.
3. Anlmal Care or Leaslng.
4. Auto SerVlce Station.
5. Auto Wash.
6.
Auto
Wrecklng.
A
permit is
requ1red prlor to Ilcens1ng
(see Sections
6120 and 6122).
other
7. Barber Shop, Beauty Parlor, or any
establlshment engaged ln tonsorial
JTlanlcurinq, shampooing, halr-dressinq,
arts,
shavlng or faClal massage.
8. Bath House or Bath ~reatMent. A
permit 18 requlred prior to licenslng (see
Sectlons 6120 and 6122).
9. Bookkeeplng.
16
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
.
e
Booking or Theatrical Agent.
Brokerage, Stocks and Bonds.
Caterer.
Check Casninq.
Collection Agency.
Co~erclal Art1st.
Consultant.
Data Proeesslng.
E~ploYMent Bureaus.
Gardenlng and Landscapino.
Fouse,
COfTll"lerc1al
Ru~ldlnq,
Industrial Plant, etc., cleaninq, includln0
janitorlal, household furnishings and
window-washlng services.
21.
22.
Illustrator.
Institutions,
schools, or persons
engaged In the bUS1ness of providing for pay
lnstructlon 1n such matters as art, aviatlon,
beauty culture, self-defense, trade or
business or other accoMplish~ent. A permit
is reau1rerl for dance and physical culture
lnstruction prlor to licenslng (see Sections
6120 and 6122). ThlS sub-section shall not
apply to any gymnaslum conducted in
connectlon wlth any private club or any
publ1C or private school where other courses
of lnstruction are given.
17
.
-
23. Letter
Agency.
~'Jrl tinq
or
Addressing
24.
25.
Lithographer.
Masseur or Masseuse. A per~it is
prl0r to lieenslng (see Sections
requlred
6120 and 6122).
26. ~10rtlclan.
27. Odor Control.
28. Private Investiqation,
Patrol or
Securlty Aqency.
29. Publ1C Stenographlc SerV1ce.
30. Rental of Vehlcles, Trailers,
Appl1ances, etc.
31. Repalr service of any type when not
ln conjunct~on wlth a bus1ness already
llcensed.
32. Research Firm.
33. Storage or Warehouse Facilities.
34. Tallors or Dressmakers.
35. Telephone Answer1ng Service.
36. Ticket Agency.
37. Tree Care.
38. Typewrlter Pepalr.
SECT ION 1 3 .
Sect10n 6240A of the Santa Monica Munlcloal
Code lS repealed.
SFCTION 14.
Sectlon 6116B 1S added to the Santa Monica
Munleipal Code to read as follows:
18
~
.
SECTIOF 61l6B.
Gross Receipts.
(a) "Gross recelpt s," whenever used in
this Artlcle, shall be construed as deflned
ln this Sectlon unless from the context a
dlfferent meaning is
lntended or unless a
nifferent ~eanlng 18 speciflcally defined.
(b) "Gross recelpts" shall mean the
qross receipts for the flscal year COmIDenclnq
on July 1 and ending on June 30 of the
followlng year and shall mean:
(1) The total aMount of the sale
prlce of all sales, the total amount charged
or received for the performance of any act,
serVlce or employMent of whatever nature it
may be, whether such service, act or
emploYJ11ent
is
done
as part of or in
connectlon with the sale of gooos, wares,
merchandise or not,
for WhlCh a charge is
made or eredlt allowed, lncludlng all
recelpts, cash, credits and property of any
kind or nature, any amount for WhlCh ereolt
lS allowed by tne seller to the purchaser
wlthout any deductlon therefrom on account of
the cost of the property sold, the cost of
the Materlals used, labor or service costs,
lnterest paid or payable, losses or any other
expense whatsoever.
19
--
.
(2) The a~ount of any federal
manufacturers'
or
importers'
eXC1se tax
lnc1uded ln tDe price of property sold, even
though the Manufacturer or importer is also
the retailer thereof and whether or not the
amount of such tax is
charqe.
stated as a separate
(3) In connection wlth a person
leaslng or rentlng property, all aMounts paid
by a tenant to a lessor for the services
performed, or Materlals used, or util1tles or
facili tles
furnlshed by tDe lessor on the
premlses or 1n connectlon with the tenant's
use,
possession, or the rlght to possess the
property; any recelpts paid by a tenant to a
lessor for the use or possession of land, or
the right to use or possess land other than
that upon which the bUlldlng or structure is
located but WhlCh lS used or possessed or is
available for use or possesslon hy a tenant
for purposes related to the tenancYi and all
anounts palO as prepald rent.
(4 )
Recelpts
of
any
person
received as
commiSSlons or fees earned, or
charges of any character Made or compensatlon
of any character received, for the
performance of any service by sald person or
20
~-
.
any of sald person's eMployees and receipts
of any person reee1ved as partial or full
COMpensatlon or relMbursenent
for salaries,
payroll taxes, frlnge heneflts and any and
all simllar expenses for persons who are
employees of said person and reC€lpts of any
person
recelved
as
part1al
or
full
compensatlon or re1mbursement for equipI'1ent,
supplies,
utlllt1es,
or other 1tems or
serVlces acquired by sald person ln that
person's naMe and used or consumed ln the
perforMance of serVlces.
( c)
lnelude:
"Gross
receipts"
sha 11
not
(I) The anount of any federal
tax imposed on or with respect to retail
sales whether lmposed upon the retaller or
upon the consumer and reqardless of whether
or not the aMount of federal tax lS stated to
customers as a seoarate charge.
(2) Any California state, Clty,
or city and county sales or use tax requlred
bv law to be lncluded in or added to the
purchase
prlce
and
collected froM the
consUMer or purchaser.
(3) Such part of the sales prlee
of any property previously sold and returned
21
e
e
hy the purchaser to the seller wh~ch is
refunded hy the seller by way of cash or
credit allowances given or taken as part
payment on any property so accepted for
resale.
(4) Cash discounts allowed or
taken on sales.
(5) Rece1pts of persons acting
as agents or brokers, other than receipts
reeelved as commissions or fees earned and
other than net lnterest incoMe earned fro~
marg ln ac count
loans,
or charges of any
cOMpensation of any
character
Made
or
character received for the perforwance of any
serVlce as aqent or brOKer: provided,
however,
any agent or broker dealing in
stocks or other sl~ilar wrltten lnstruements
eVldenelng a riq~t to participate in the
as se ts
of any buslness,
or deallng 1n bonds
or other evidences of indebtedness, who also
deals
in such property as a pr1nc~pal, shall
lnclude in qrass recelpts the a~ount of
tradlng proflts resulting frOM such dealings.
(6) Any refundable deposlt wh~ch
is returned to the depositor.
(7) Gross reeelprs
from any
actlvity for which a business 11cense would
22
e
e
not be requlreo under this Code and WhlCh is
received from incidential actlvltles of the
llcensee.
of
(8) That portion of the receipts
qeneral contractor 11censed under
a
Sections 6212, 6212R, 6212C,
or 6212F. WhlCh
represents
provlded such
payments to
subcontractors
subcontractors
are licensed
under the provlsions of thlS Chapter and that
the qeneral contractor furnishes the Dlrector
of Flnance with the names and addresses of
the subcontractors ana the amounts pain to
each subcontractor.
(9) Gross rece1pts attributable
to sales withln a slngle business entlty when
no net ga1n results,
corporatlons when one
lnterest in the
including affiliated
has at least an 80%
other,
wholly-owned
eorporatlons, and partnershlps and partners.
(10 )
Rad debts taken froM qross
recelpts reported durlna a prior tax year ln
accordance
with
generally
acceptable
accountlng practlces.
(II) Anythlng whleh the City of
Santa Monica nay not lawfully lnclude by
virtue of the Constitution of t"he Unlted
23
It
e
States or the Constitutlon of the State of
Californla.
(d) When,
by reason of the provislons
of the Constltution of the United States or
the Const1tut~on of the State of Cal1fornia,
the bUS1ness license fee lmposed by this
Article cannot be enforced without there
be1ng an apportionMent according to the
aMount of buslness done 1n the city of Santa
~on1ea, or ln the State of Cal1forn1a, as the
case may be, apportlonment rules shall he
established as follows:
(I) The Clty Council from time
to tlme shall adopt by resolution general
gUldelines for apportlonment.
(2) The
Director of Plnance,
wlth the approval of the City Attorney, May
~ake such rules and regulations for the
apportionment of tne tax as are necessary and
deslrable to overCOMe the constitutional
Ob]ect1ons and WhlCh are conslstent with the
general apportlonment Guidelines adopted by
resolution of the Clty Councll. The Dlrector
of Flnance snaIl publish such rules and
regulatlons once ln a newspaper of general
clrculation withln the C1ty of Santa Monica.
Wlthln IO days of the date of publication of
24
e
e
such rules and regulations,
any lnterested
person may file a request with the City Clerk
that the Clty Council review the rules and
regulatlons so published.
The rules and
regulations shall be flnal at the expiration
of the perlod for requesting review ln the
event no reauest for review lS flIed, or ln
the event of the fllinq of a reouest for
reVlew, when the rules and requlatlons have
been aoopted by the C1ty Councll.
(3) The apportlonment shall be
~ade on the bas~s of payroll value and Sltus
of tanqlble property, general expense, or by
reference
to
any
other
method
of
apportionment as wlll fairly determine the
a~ount of gross recelpts derived from or
attrlbutable to engaginq in bUSlness in the
Clty.
Gross reeelpts derived from lsolated
or occasional transactlons at places outside
the City but with~n the State of California,
where the llcensee is not regularly engaged
ln a course of business transactions shall be
deemed gross receipts derlveo frOM enoaglna
in bUSlness in the Clty.
Gross rece~pts
derlved
from or attributable to sources
wlthin the Clty lnclude gross receipts from
tanglble or lntanglble property located or
25
e
e
having a Sltus 1n the City and, when not
contrary to la'tT, <?,TOSS rece1.pts from any
aetlv1tles carrled on ln the C1.ty reqardless
of
whether
carrled
on
in 1nterstate,
1ntrastate, or fore1qn commerce.
SECTION 15.
Section 6127 is added to the Santa
Monlca Mun1cipal Code to read as follows:
SECT ION
6127.
Operation
of
1983-84 Tax Rate Changes.
(a) The amendments to Sectlons
62 09 ,
62 25A,
6212R, 6212C, 62l2F, 6219A, 6225,
6226, 6236, 6240, and 6240A contained
1n the ordinance adopting thlS Section shall
be effect1ve for license year cOMmencing on
July I, 1983, and ending on June 30, 1984, as
follows:
(1) The annual license fee
required by such Sectlons shall be determined
on the basls of the aross receipts reported
in license year 1983-84 ln accordance with
this Code.
( 2 ) The
annual
license
fee
required by the predecessor of such Sections,
as effectlve prlor to the date of of adopt1on
of the ordinance adopting this Section, shall
be deter~ined on the basis of qross recelpts
26
e
e
.
reported
in
license
year
1983-84
in
accordance wlth thlS Code.
(3 ) Th e amount determined. In
accordance with subdivls10n (a){l) of this
Sectlon and the aMount r'!eterJluned in
accordance with subch vislon (a) (2) of this
Section shall he totaled and divided hy 2.
The aMount deterMlned ln accordance wlth this
suhdivis10n shall be the amount of the annual
llcense fee for license year 1983-84.
(4) If a person has previouslv
paid to the C1ty an annual license fee for
llcense year 1983-84 WhlCh is less than the
aMount
deter['luned
ln
accordance
with
the
subdlvlsion
(a) (3)
of this Sectlon,
person shall pay to the Clty on or before
March I, 1984, an aMount equal to the
dlfferenee between the annual license fee
determlned
in accordance
(a) (3 ) of
this Bectlon
with
and
subdlvision
such arn.ount
prev10usly pa1d not lnclur1ing any penalties.
(5 ) If a person nas previously
paid to the Clty an annual license fee for
l.l.cense year 1983-84 ,,,hi en 18 greater than
the aMount determinec'l. ln accordance with
subdlvision (a) (3) of thlS Section, the Clty
shall refund to the person on or before March
27
e
e
1,
1984,
an amount equal to the difference
between such amount prevlously paid not
1ncludlng any penaltles and the annual
license fee determlned ln accordance with
subdivlslon (a) (3) of th1S Section.
( 6 ) For
llcense year 1983-84
only,
and from the effectlve date of this
Sectlnn, in 11eu of the penalties provlded
for ln Sections 6109 and 6112 of thlS COQe, a
penalty of twenty-five percent (25%) shall be
lmposed on the anount of the annual 11cense
fee determlned in accordance with subdlvision
(a) (3) of tlns Section. No person shall be
entltled to a refund of any penalties paid
prior to the effectlve elate of tJois Section.
(7 ) In addition to the penalty
imposed by subdlvlsion (a) (6) of this
Sect lon, a penalty of twenty-flve percent
(25%)
shall he i~posed on the amount of any
annual 11cense fee determined in accordance
wlth
suhdlVlsion (a) (3)
of thlS Section
remalninq unpa1d after March 1, 1984.
(8) The Dlrector of Flnance
shall mall to all persons subJect to an
annual llcense fee pursuant to the Seetlons
set forth ln subd1vlsion (a) of thlS Sectlon,
a statement setting forth the determination
28
.
e
e
..-
of the annual license fee for license year
1983-84.
(b) The
Seetlons
described
ln
subch vlsion (a)
of this Section shall be
fully effectlve, wlthout regard to
suhdlvlsion (a) of this Sectlon and without
other proratlon or other reductlon, except as
required by other provls1ons of this Code,
for l1cense year 1984-85 and each llcense
year thereafter.
(c) For those Dersons suhJect to the
annual license fee required by Sectlons 6209,
62l2R,
6226,
( ccs )
6212C, 6212F, 6219A, 62::>5, 6225A,
6236, ann 6240, the special bUSlness
fee requ1ren by Ordlnance Number 702
or Ord~nance Number 960 (CCS) shall be
11cense
netermlned on the bas1s of the annual 11cense
fee netermined in accordance with subdivislon
(a)(2) of this Seetlon.
(d) On or before March 1, 1985, the
City Manager shall prepare a wrltten report
to the Clty Council descrlblnq the operat1on
of
the
tax
rate chanqes made by the
amendments
contalned
In
the
ordinance
adopting
thlS
Section,
lncluding
the
appropriateness and tax incldence of rates,
the revenue produced,
ana recoMmendatlons
29
f . .
e
e
concernlng any adJustment in the rates. If
the revenues generated by the tax rate
changed made by the aMendMents contalned in
ordlnance adopting this Sectlon substantially
exceed proJected revenues from the changes,
the Clty Council shall conslder a downward
adJustroent of the rates.
SECTIO!\T 16.
Sectlon 6225A lS aoded to the Santa ~onica
Hunlc1pal rooe to read as follows:
SECTION 6225A. Annual License Fee of
ReQulaterl Utillties.
this Code an annual
Whenever bv vlrtue of
license fee is requlred
to be pald by any ut1lity subJect to Artlele
XIII, Sectlon 19 of the Constltutlon of tpe
State of Callfornia, the annual license fee,
notwlthstandinq any provislon to the contrary
contalned in th1S Code, shall be $50.00
Mlnimum, plus $.60 per each $1,000 or
fraction thereof of gross receipts in excess
of S50,OOO and less tran or equal to S250,OOO
and Sl.25 per each Sl,OOO or fraction thereof
of gross recelpts In excess of S250,OOO.
SECTIO~ 17. Any provislon of the Santa Monica Municlpal
Code or appendices thereto inconslstent witD the provisions of
thlS ordlnance, to the extent of such lnconsistencies and no
further, are nereby repealed or ~odlfied to that extent necessary
to affect the provlslons of this ordinance.
30
"
.
e
.,..:11 .
SECTION 19.
If any sectlon, subsectlon, sentence, clause,
or phrase of thlS ordlnance is for any reason held to be invallo
or unconstltutlonal by a deels10n of any court of any co~petent
Jur~ Sdlction,
such declsion shall not affect the validlty of the
remainlng port1ons of the orolnance.
The City Council hereby
declares that lt would have passed this ordinance and each an0
every
section,
subsection,
sentence,
clause or phrase not
declared invalid or unconstltutional wlthout regard to whether
any portlon of the ordlnance would be subsequently declared
lnvalld or unconstitutlonal.
SECTION 20.
The Mayor shall Slgn and the City Clerk shall
attest to the passage of thls ordinance.
ThlS City Clerk shall
cause the same to be puhllshed once in the official newspaper
withln 15 da~s after its adoption.
The ordlnanee shall hecome
effectlve after 30 days from lts adoption.
APPROVED AS TO FORM:
~~. ~~r-
Robert M. Myers
City Attorney
31
'" , I ,..
. e
Santa Monica Bar Association
225 Santa Momca Boulevard '7
SUite 906. Crocker Bank BUlldmg ~ tf!? 8--0/<3
Santa Momca, Cahforma 90401
(213) 451-5633
October 25, 1983
b---R
_~~t
Honorable Ken Edwards, Mayor
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Re: Business License Tax Increase Ordinance
Dear Mayor Edwards:
The Board of Trustees of the Santa Monica Bar Association held
a Special Meeting October 24, 1983 to consider whether the Bar
Association should take a position pro or con on the above
matter which we understand will be before you this evening for
"first reading.t1
The following resolution was duly adopted at the meeting (6 in
favor, 1 opposed, and 1 abstention):
RESOLVED: That the Board of Trustees of the Santa Monica
Bar Association opposes the proposed increase of the
business tax for the professions, occupations and services
catagory by the City Council of the City of Santa Monica.
I was asked to express the position of Board of Trustee of the
Bar Association on the issue. Briefly stated, their opposition
to the proposed increase appears to be based upon strong
feelings that the same is both discriminatory and arbitrary.
These complaints go to the aspects of the nature of the tax
itself, being based in the particular catagory mentioned, on
Ugross receiptstf without regard to the expenses involved in
generating the same, or put in a different manner, the profit
involved. It was generally felt that to tax substantially in
such a manner was not an appropriate way to fairly share the
tax burden. Also, even the so-called "compromise" proposal
does not appear to fairly treat those in the middle and upper
or top catagories and cannot but have adverse effects on
professional services available and the costs thereof in the
community.
V7~Z
tfff-!ft: DURST
President