O2158
F:\atty\muni\Jaws\mjm\smallbusinessexempt2d-1.doc
City Council Meeting 6-14-05 Santa Monica, California
ORDINANCE NUMBER 2158 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ADDING SECTION 6.04.025 TO THE SANTA MONICA MUNICIPAL
CODE RELATING TO BUSINESS LICENSE TAX EXEMPTIONS FOR SMALL
BUSINESSES
THE CITY COUNCil OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Section 6.04.025 is hereby added to the Santa Monica Municipal
Code to read as follows:
Section 6.04.025. Small business exemption.
(a) The requirements of this Chapter relating to the
payment of business license taxes shall not apply to the
operator of any small business if the business operates from
a physical location within the City and the tax liability of the
business would otherwise be calculated based upon gross
receipts.
1
(b) For purposes of this Section, the term "small
business" is defined as a business with total taxable and
nontaxable annual gross receipts from within and without the
City during the preceding calendar year that do not exceed
Forty Thousand Dollars ($40,000.00).
(c) Any person claiming exemption from the
requirement of paying the business license tax under this
Section shall be required to obtain a business license and
timely file for exemption and subsequent renewals before the
delinquency date. The failure to timely file or renew prior to
the date the taxes would otherwise have been delinquent
pursuant to Section 6.04.160, shall render inapplicable the
exemption provided in subsection (b) above and shall
subject the person to the tax that would otherwise be
payable as well as to any interest and penalty applicable
thereto. Persons claiming exemption shall also be required
to pay the business license application fee, renewal
processing fee, all other applicable City fees, and to obtain
all permits required for the operation of the business.
(d) Any person claiming exemption under this Section
shall submit documentation evidencing the total taxable and
nontaxable gross receipts of the applicant in support of its
initial exemption registration and the annual exemption
2
renewal. Such documentation shall comply with the
requirements established by the Finance Director to ensure
the accuracy and validity of the City's determination on the
exemption claim.
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, is hereby repealed or modified to that extent necessary
to effect 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 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 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 30 days from its adoption.
APPROVED AS TO FORM:
3
Approved and adopted this 14th day of June, 2005.
~
Pam O'Connor, Mayor
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 2158 (CCS) had its introduction on May 25, 2005, and was
adopted at the Santa Monica City Council meeting held on June 14, 2005, by the
following vote:
Ayes: Council members: Mayor O'Connor, Mayor Pro Tern Katz, Bloom,
Genser, Holbrook, McKeown, Shriver
Noes: Council members: None
Abstain: . Council members: None
Absent: Council members: None
- ATTEST'
~..~~~
Maria M. Stewart, City Clerk
4