HomeMy WebLinkAboutAgenda Report - December 21, 1994 PHJ
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CITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Council Action to Set Dates for a Public Meeting and a Public
Hearing Pursuant to Government Code 554954.6 for the Purpose
of Receiving Public Testimony on Proposed Amendment to the
Business License Tax Ordinance
MEETING DATE: December 21, 1994
PREPARED BY: City Attorney
RECOMMENDED ACTION: To set a public meeting for January 4, 1995 and a
public hearing on February 15, 1995 to hear public
testimony on proposed amendment to the City's Business
License Tax Ordinance.
BACKGROUND INFORMATION: Pursuant to Government Code 554954.6, if a City
proposes to increase any general tax, it is first
required to hold a "public meeting" at least
forty-five (45) days before the actual "public hearing" at which the ordinance
increasing such tax is to be adopted. Opportunity for public input must be
offered at both the public meeting and public hearing. This statute further
requires that "the public meeting... shall take place no earlier than ten days
after the first publication of the joint notice pursuant to this subdivision."
In order to comply with this statutory time line, the following schedule should
be followed:
December 21, 1994 - Council action setting date for Public
Meeting and Public Hearing;
January 4, 1995 - "Public Meeting" for the purpose of
receiving public testimony regarding the
proposed increase in business license tax;
February 15, 1995 "Public Hearing" for the purpose of
amending the City's Business License Tax
Ordinance (Introduction)
March 1, 1995 - (If applicable) Second reading and final
adoption of Ordinance
APPROVED
ThIOMAS A. PETERSON v recycled papef
City Managor
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Government Code 554954.6 (2) also requires that at the public meeting (January
4, 1995) certain information on the proposed increase must be provided to the
public. This information includes:
a. The amount or rate of the tax.
b. The activity tax.
c. Estimated revenue to be raised annually by the tax.
d. The method and frequency for collecting the tax.
e. The date, time and location of the required public hearing.
f. Telephone number and address of the person or agency where
additional information can be received concerning the
proposed tax.
This information is contained in the report and description of the tax prepared
by Finance Director Dixon Flynn, which is provided under separate cover to this
Council Communication.
FUNDING: Not applicable.
Respectfully submitted,
Bob McNatt
City Attorney
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CCBUS.LIC/TXTA.OIV
December
December 21, 1994
Honorable Mayor & City Councilmembers
City of Lodi
P. O. Box 3006
Lodi, CA 95241-1910
Gentlemen:
The Central City Revitalization Task Force met Tuesday, December 20, 1994
to review actions taken by the City Council during the Special City Council
meeting December 13, 1994. Discussions during the Task Force meeting
centered around the financing of the project, and in particular the
Business License Tax.
I have attached a copy of the Task Force's recommendations as was presented
during the Special meeting last week. I would appreciate it if you would
take the time to read the attached and consider our position when you set
the date this evening for the Business License Fee hearing.
Thank you for your consideration.
Sincerely,
Tony Segal Chair
Central City Revitalization Task Force
Actachment
Central City Revitalization Task Force
Motions
12/8/94
"The Task Force recommends supporting the $3.5 million project
as proposed by Freedman, Tung, and Bottomley." 8-0 in support
(Bob Johnson absent)
12/8/94
"In concept, the Task Force recommends the funding proposal of
a 50-50 sharing (between the public and private sectors) of the
cost of revitalizing Downtown and Cherokee Lane. Further, the
Task Force recommends the assessment rates as proposed for
the private sector funding. Finally, the Task Force recommends
that after successful establishment of the Assessment
District(s) and sale of the bonds, the public sector funding be
provided through a business license fee increase sufficient to
cover the City's obligation for capital and ongoing costs of the
revitalization projects." 7-0 in support (Bob Johnson and
Virginia Snyder absent)
CITY OI'}�' ODI
Carnegie Forum
. 305 West Pine Street, Lodi
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NOTICE;OF PUBLIC HEARING
Date: January 4,1995 (Public Meeting)
February 15,1995 (Public Hearing)
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Perrin
City Clerk
Telephone: 209 333-6702 .00
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, January 4, 1995, at the hour of 7:00
p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a
Public Meeting, and on February 15, 1995 at the hour of 7:00 p.m., or as soon thereafter
as the matter may be heard, the City Council will conduct a Public Hearing to consider the
following matter:
a) To consider and hear public testimony on the proposed Business License
Tax Ordinance.
Business taxes will be imposed on all businesses, professions, trades,
vocations, enterprises, establishments, occupations or callings conducted
in the City of Lodi to which a business tax may be lawfully applied using
the tax rates in Table 1 (attached). New businesses will not pay more
than the minimum tax in their first year of business whether located in or
outside of the City. The tax will be due and payable annually in January
for the prior year except for new businesses which will pay the minimum
tax at the time issued.
Businesses exempt from the business license tax:
• Minors under the age of 18 with gross receipts of less than $5,000
per year;
• Home occupations with gross receipts of less than $5,000 per year,
• Charitable, religious and non-profit organizations;
• Businesses exempt by Federal or State statutes, laws, franchise
agreements, or other contractual agreements. This includes banks,
insurance companies, their agents and other financial institutions,
cafe musicians, real estate auctioneers, businesses that
manufacture. sell, purchase, possess or transport alcoholic
beverages.
Excluded from the calculation of gross receipts is the following:
• All taxes;
• Discounts, refunds and credits:
• Passive income from investments, dividends and the occasional sale
of property:
• Bad debts;
Amounts received by one party and paid to another party by persons
acting as agents, brokers and trustees.
JVTVCLRKV0RMSW01tCE2DOC 12MY94
PUBLIC HEARINGCE
PROPOSED BUSIKLICENSE TAX
JULY 6,1994
Table 2 (attached) shows the estimated revenue for each of the three
options, and it ranges from $887,00 to $601,000.
All interested persons are invited to present their views and comments on this matter.
Written statements may be filed with the City Clerk at any time prior to the hearing
scheduled herein, and oral statements may be made at said hearing.
By Order of the Lodi City Council:
"-'I.ciq�
J iter M. rrin
Ci Clerk
Dated: December 21,1994
Approved as to form:
Bobby W. McNat!
City Attorney
J %CITYCIRN\FORMS%N0ME2 DOC IM"
BUSINESS LICENSE TAX RATES
TABLE 1
Retail and Services
Gross Receipts
$30
'
1
1
$0 to $200,000
$30
$40
$30
$20
$200,001 to $500,000
$30
$90
$70
$50
$500,001 to $900,000
$30
$150
$110
$80
$900,001 to $5 million
$30
$.60/ $1,000
$.55/$1,000
$.50/$1,000
$5,000,001 and greater
$30
1 $.90/$1,000
1 $.75/$1,000
1 $.60/$1,000
Contractors
Rental Residential Property
$30
'
1
1
Rental Non -Residential Property
$30
$.40/$1,000
$$.35/$1.000
$.30/$1.000
Gross Receipts
$30
5.60/$1,000
$.55/$1,000
I 5.50/$1,000
Public Utilities
Administrative Headquarters
$30
$.90/$1,000
1
1
Gross Receipts
$30
$.40/$1,000
$$.35/$1.000
$.30/$1.000
Professions
Gross Receipts
$30
$.90/$1,000
1 $.75/$1,000
1 $.60/$1,000
Recreation and Entertainment
11oteUlflotel Services
Automobile Dealers
$30
$.02/ Sq Ft
$1.5/Sq Ft
$.01/Sq Ft
Gross Receipts
$30
$.25/$1,000
$.20/$1,000
$.15/$1,000
ManufacturersMiolesalers
Square feet of Building Space
Occupied **
$30
$.02/ Sq Ft
$1.5/Sq Ft
$.01/Sq Ft
' Minimum tax due in the first calendar year of business in Lodi (not prorated)
"" Not to exceed $3,000 per year
BUSINESS LICENSE TAX REVENUES
TABLE 2
Retail and Services
Gross Receipts
'
$0 to $200,000
1,660
$51 million
$ 66,400
$ 49,800
$ 33,200
$200,001 to $500,000
475
jS170.4 millio
$ 42,750
$ 33,250
$ 23,750
$500,001 to $900,000
220
$ 33,000
$ 24,200
$ 17,600
$900,001 to $5 million
158
$348 million
$ 208,800
$191,400
$174,000
$5,000,001 and greater
1 12
1 $123 million
1 $ 110,700
1 $ 92,250
1 $ 73,800
Contractors
Rental Residential Property
'
Rental Non -Residential Property
5
$51 million
$ 20,400
$ 17,850
$ 15,300
Gross Receipts
1025
jS170.4 millio
I S 102,240
1 $ 93,720
1 $ 85,200
Public Utilities
Administrative Headquarters
Gross Receipts
5
$51 million
$ 20,400
$ 17,850
$ 15,300
Professions
Gross Receipts 330 $160 million I S 144,000 1 $120,000 $ 96,000
Recreation and Entertainment
Hotel/Motel Services
Automobile Dealers
Gross Receipts
94
$106 million
I $ 26,510
1 S 21.208
1 S 15,906
Manufacturers/Wholesalers
Square Feet of Building Space
330 120,000 Sq Ft 1 $132,000 1 $99,000 1 $66,000
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