SR-0 (41)
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CM:MS Santa Monica, California
City Council Information Item: October 18. 1983
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TO: Mayor and City Council
FROM: City Staff
RE: City-Chamber Discussions on Business License Tax Changes
INTRODUCTION
The purpose of this report is to summarize the events and
outcomes of meetings between City and Chamber representatives on
October 17 and 18 regarding business license tax changes.
BACKGROUND
In accordance with City Council request at its September 27th
meeting, the Board of Directors of the Chamber of Commerce
submitted
written comments regarding the proposed business
license tax changes on October 11, 1983 (see Attachment A).
On Monday, October 17, 1983, City and Chamber representatives met
to clarify the Chamber proposal, to review the fiscal impact of
the Chamber proposal and to discuss possible compromises (see
Attachment B) .
This meeting was attended by: Councilmember
Jennings, John Alschuler, C. Michael Dennis, Meganne Steele, Joe
Miko, Dick Messer, Tom Nitti, Gi1 Jamison, Vince Muse11i and
Jerry JacKson. The outcome of this meeting was consensus on the
elements of a City-Chamber compromise Proposal to be reviewed in
detail on October 18.
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On Tuesday, October 18, 1983, City and Chamber representatives
met to review the fiscal impact of the City-Chamber compromise
and to ensure agreement on other elements of the proposed
business license tax revisions. This meeting was attended by
Mayor Edwards and everyone present at the October 17 meeting,
except Councilmember Jennings and Dick Messer. The outcome of
this meeting was consensus on the following City-Chamber
Compromise Proposal.
City-Chamber Comprom~se Proposal
1) Amend the Chamber proposal of october 11 as detailed on
Attachment C.
2) Provide by ordinance for: a) a staff review and report on the
appropriateness and tax incidence of rates and caps in the
business license tax ordinance during planning for the 1985-86
Budget~ and b) if the revenues generated by the new rate
structure substantially exceed current projections, consideration
will be given to a downward adjustment of the rates.
3) The gross-receipts definition presented in the September 27,
1983 staff report shall be revised considering the features
outlined in Attachment D, and clarifying the tax treatment of
licensees ~ho hire other licensees.
4} Facilitate development and administration of apportionment
standards:
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a. Concurrent with City Council adoption of ordinance
revisions, Council to adopt general policy guidelines for
apportionment by resolution.
b. Establish a City-Chamber Working Group on apportionment
rules
to
meet
biweekly
during
the development of
apportionment standards and thereafter as new apportionment
standards are developed.
c. Ensure that the ordinance provides clear procedures for
appeals to City Council on an exception basis regarding
business license tax administrative rUlings/standards.
Prepared by: Meganne Steele
Sr. Administrative Analyst
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