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HomeMy WebLinkAboutAgenda Report - January 4, 1995 (42),� OF CITY OF LODI COUNCIL COMMUNICATION c4tr ��P AGENDA TITLE: Public Meeting To Consider A Revised Business Tax Ordinance MEETING DATE: January 4, 1995 PREPARED BY: Finance Director RECOMMENDATION: That the City Council conduct a Public Meeting to consider the following recommendations set for a Public Hearing on February 15, 1995: a. To adopt Chapter 3.01 of the Municipal Ordinance titled "Business Tax Certification"; and, to amend Chapter 9.16.010B of the Municipal Ordinance to define "solicitor". (Exhibit A) b. To delete Chapter 5.04 of the Municipal Ordinance titled: "Businesses Licenses Generally". (Exhibit B) To adopt the attached Resolution setting the tax rates by business classification as provided under Chapter 3.01, Article Il of the new Municipal Ordinance and to waive penalties for late payments under Chapter 5.04 of the old Municipal Code. (Exhibit C) BACKGROUND: At a special Council meeting on December 13, 1994, the City Council directed staff to return with a revised business tax ordinance and tax rates by January 1995; and, further directed staff to delay the collection of business license taxes due January 1, 1995. Financing services and new facilities The City Council will consider a number of requests to expand City services and to construct new public facilities in the current fiscal year and fiscal year 1995-96. This includes the implementation of an economic development plan to revitalize downtown, the beautification of Cherokee Lane, additional code enforcement for East side residential areas, increasing the number of police officers, adding additional fire services and facilities, park improvements, construction of a performing arts center and construction of a recreation center. The City's current funding levels will not support any significant increases in services or provide funds to finance major capital projects. Over the last three years the City has balanced the annual budget by cutting services by imposing a hire freeze, cutting 32 staff positions and deferring maintenance programs. Current revenues will allow for some growth in services but will not provide the funds necessary for financing significant changes in services or major capital projects. APPROVED: THOMAS A. PETERSON recycled paper 16. City Manager cc -1 Alternative funding sources The City has several funding sources which could be used to finance new services and capital projects. The following is a list of possible revenue sources that could be used to raise additional revenues. This is not a comprehensive list of all possible revenues but is a list of revenues which do not require a two thirds vote of the general public to be enacted by the City Council. Assessment Districts The City has not used assessment districts to finance public improvements or capital maintenance to any extent over the last 20 years. The last assessment district formed by the City was in 1984 to finance a downtown beautification project. Assessment districts could be used more extensively to finance maintenance programs, capital projects and to a limited extent, operating programs. The advantage of an assessment district is that the cost of a project or service is paid for by the beneficiary and not the public from general fund revenues. Assessment districts are used extensively by cities with aggressive growth policies. Assessment districts may require a vote of the benefit group or may be subject to a majority protest. Redevelopment Agency The City does not have a redevelopment agency. A redevelopment agency can provide significant revenues to finance economic development and abate blight; however, it requires at least 5 years before the revenues increase to a level necessary to make a significant impact on city services. In addition, start up costs can be high. The City should seriously consider forming a redevelopment agency to finance economic development and to abate blight; however, this is a long term solution to financing services and capital projects. Increased fees The City has increased user charges and service fees over the last 3 to 5 years to pay for the cost of existing services and to finance the impact of growth on public facilities. Under current City Council policy, fees will continue to be adjusted to match changes in the cost of services. As such, fees will not provide additional funds for general municipal purposes but will continue to ensure that these services do not require added subsidies from the general fund. The following is a list of fees which have increased over the last five years. • Electric Rates • Sewer Rates • Garbage Rates • Fees for recreation programs 0 Fees for park and facility use • Other miscellaneous fees for building inspection, public safety, finance and administration • Impact fees for capital facilities Added tag revenues The instability of tax revenues over the last three years has been a major source of the City's difficulty in balancing the annual budget. The shift of the $1.1 million in property taxes to the State resulted in significant cuts in the City's staffing and services. Sales taxes have grown with the economy for several years and should continue to grow at a rate which reflects the City's plans to promote economic development. San Joaquin County has been benefiting from a shift in population and business from the large metropolitan areas to less expensive and less congested Valley communities. Accordingly, sales taxes have grown, jobs have increased and business has prospered. The City anticipates that sales taxes will continue to grow and provide the revenues necessary to finance growth of existing services over the next two to five years. However, it is important to remember that sales taxes are not a stable source of revenue and are subject to the ups and downs of the economy. There are two tax sources which could have an immediate impact on City revenues and could be used to finance new services and capital facilities, a utility user's tax and the business license tax. These are relatively stable tax sources and could be adopted by the City Council without a public vote for general fund purposes. The utility user's tax is considered to be one of the most equitable tax sources for general fund purposes. It is a broad based tax which is relatively stable. The utility user's tax is paid by the public for use of public utilities, i.e. water, sewer, electric, telephone, cable television, garbage, etc. With a broad tax base (number of utility customers versus number of businesses) the utility user's tax rate can raise more revenue than the business license with a similar tax rate. As such, the utility user's tax can be spread over a larger population than the business license tax and be a lesser burden to each taxpayer. However, the utility user's tax has been a very unpopular tax in many cities where it has been adopted and for this reason is not being considered at this time. The current Business License Tax has been in effect since 1948 and has not been changed since first approved by the City Council. The current tax is a flat rate tax based on the number of employees. The revenue from the business license tax has increased since 1948 from $15,000 per year to $90,000 per year as the number of employees and businesses in Lodi have grown; but it has not kept pace with inflation. Accordingly, the revenues from the business license tax contribute less and less each year to the funds used for general municipal purposes. In addition, there have been a number of legislative changes over the last 46 years which have not been incorporated into the City's current ordinance which should be corrected at this time. Public/Private partnerships For many years, the City has been fortunate to receive a high level support from the private sector in financing public projects, particularly for park expansion and improvements and for the construction of cultural facilities. Private donations have allowed Lodi to provide public facilities and purchase equipment which might not otherwise have been purchased or constructed, i.e., donations by individuals and service clubs to finance park expansion and improvements, donations by the Hutchins Street Square Foundation to finance renovation and expansion of Hutchins Street Square, and donations by the business community to purchase vehicles and equipment for police services. The City should continue to nurture and support private participation in community projects and take pride in the fact that there are so many citizens willing to donate their funds and time to important public projects. However, the private sector is not a normal source of funding for operating and maintaining public facilities. Once the private sector has funded the construction of a public facility, it becomes the public sector's responsibility to fund the long term cost of operating and maintaining this facility. BUSINESS LICENSE TAX In the last year the City has had two consultants recommend that the City revise the business license tax ordinance (Ralph Anderson & Associates and Friedman, Tung, and Bottomley). Their recommendation was made for several reasons and include: • To finance the public share of downtown revitalization and Cherokee Lane Beautification at $4.8 million and $138,000 per year in annual maintenance costs • The current ordinance and tax rates have not been changed since 1948. • The business tax provides the City with .5% of the total general fund revenue compared to the statewide average of 5.8%. • The tax rate is based on number of employees and is regressive. • The current ordinance places an unfair tax burden on labor intensive businesses • Similar types of business are treated differently • Not all businesses are subject to the tax In December 1993, the City reviewed a proposal by Ralph Anderson & Associates to change the City's business license ordinance and tax structure. Their recommendation included the following changes: • That the City adopt a business classification system based on the standard industrial codes and group similar businesses for taxing purposes into three business classes based on profitability. • That the City impose taxes based on "gross receipts" ranging from $.20 to $.90 per $1,000 of gross receipts. Review Process Beginning in February 1994, the City staff and the Chamber of Commerce held a number of public meetings with citizens, the Chamber of Commerce and the business community to review the tax rates proposed by Ralph Anderson & Associates. In March, the Chamber of Commerce conducted a random survey of its' membership to determine whether there was support for a change in the business license tax or not. The survey found that the majority of the members would support an increase in the business license tax and that a flat rate tax was .favored by 61%, gross receipts was favored by 27%, no fee increase was favored by 10% and a combination of gross receipts and flat rate was favored by 2%. Based on this information the City Council directed staff to develop alternative tax rates for review by the Chamber of Commerce, the public and the City Council. Staff made adjustments to the recommendation by Ralph Anderson & Associates and developed a flat rate tax based on gross receipts and square feet of space occupied. Prior to the presentation of the new tax rates, the City Council decided to defer any decision on the business license tax until after the need for new taxes is apparent. Table 1 shows optional tax rates recommended by staff. Table 2 shows the estimated revenues that should be received if these rates are approved. Estimated Revenues The estimated revenues shown in Table 2 range from $600,000 to $886,000. It must be noted that these estimates are based on a limited source of information available to the City on which to estimate revenues. These estimates are a best guess and may be materially different if the tax is approved and revenues collected. Late Penalties Under Chapter 5.04.170 of the Municipal Code, the Finance Director is required to add a penalty of 10% of the business tax due for each month the tax is delinquent. At the December 13, 1994 Council Meeting, the Council directed staff to delay collection of the business tax for 1995 until a decision is made on changing the tax rates. Accordingly, the staff recommends that the City waive penalties for taxes due January 1, 1995. Schedule The following is the schedule of meetings and hearings which must be held to adopt a change in the business license ordinance and tax rates. • Set Public Meeting • Public Meeting • Public Hearing • Second Reading December 21, 1994 January 4, 1995 February 15, 1995 March 1, 1995 • Effective Date of Chapter 5.01 of the Municipal Ordinance March 2, 1995 • Taxes Due April 1, 1995 Dixon Flynn Finance Director Attachments Tax Rates (Table 1) Tax Revenues (Table 2) Draft Ordinance 3.01 and Amended Ordinance 9.16.O10B Ordinance 5.04 Resolution to Adopt Tax Rates BUSINESS LICENSE TAX RATES TABLE 1 Retail and Services Gross Receipts $30 ' 1 $.75/$1,000 1 $.60/$1,000 $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 $.75/$1,000 1 $.60/$1,000 Rental Non -Residential Property $30 $.40/$1,000 $.35/$1,000 $.30/$1,000 Gross Receipts $30 $.60/$1,000 $.55/$1,000 $.50/$1.000 Public Utilities Administrative Headquarters $30 $.90/$1,000 1 $.75/$1,000 1 $.60/$1,000 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 Hotel/Motel Services Automobile Dealers $30 $.02/ Sq Ft $.015/Sq Ft $.01/Sq Ft Gross Receipts $30 $.25/$1,000 $.20/$1,000 $.15/$1,000 Manufacturers/Wholesalers Square Feet of Building Space Occupied ** $30 $.02/ Sq Ft $.015/Sq Ft $.01/Sq Ft * Nliinimum tax due in the first calendar year of business in Lodi (not prorated) * * Not to exceed $3,000 per year BUSINESS LICENSE TAX tr:VENUES TABLE 2 Retail and Services Gross Receipts 330 $160 million ' $120,000 $ 96,000 $0 to $200,000 • 1,660 $51 million $ 66,400 $ 49,800 $ 33,200 $200,001 to $500,000 475 $170.4 millionj $ 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 12 $123 million 1 $ 110,700 $ 92,250 1 $ 73,800 GROUP 2 Contractors Rental Residential Property 330 $160 million ' $120,000 $ 96,000 Rental Non -Residential Property 5 $51 million $ 20,400 $ 17,850 $ 15,300 Gross Receipts 1 1025 $170.4 millionj $ 102,244 1 $ 93,720 $ 85,200 Public Utilities Administrative Headquarters 330 $160 million $ 144,000 $120,000 $ 96,000 Gross Receipts 5 $51 million $ 20,400 $ 17,850 $ 15,300 GROUP 4 Professions Gross Receipts 330 $160 million $ 144,000 $120,000 $ 96,000 Recreation and Entertainment Hotel/Motel Services 1 1 Automobile Dealers 330 20,000 Sq Ft $132,000 $99,000 $66,000 Gross Receipts 94 $106 million $ 26,510 $ 21,208 $ 15,906 Manufacturers/Wholesalers Square Feet of Building Space 1 1 Occupied 330 20,000 Sq Ft $132,000 $99,000 $66,000 ORDINANCE (1995 SERIES) i AN ORDINANCE OF THE CITY OF LODI REPEALING CHAPTER 5.04. AND 9.16.010 B, OF THE LODI MUNICIPAL CODE AND ADDING CHAPTERS 3.01 AND 9.16.010 B TO THE LODI MUNICIPAL CODE RELATING TO BUSINESS TAX CERTIFICATION AND BUSINESS PERMITS WHEREAS, the City's business tax ordinance has not been revised since 1948; and WHEREAS, the City Council established the revision of the business tax ordinance as a high priority at a special Council meeting on December 13, 1994; and WHEREAS, the staff developed a revised business tax ordinance to improve equity and administrative simplicity and to increase revenues for general municipal purposes; and WHEREAS, the revised ordinance was presented to the City Council at a public meeting on January 4, 1995; and WHEREAS, forty-three days have passed between the public meeting on January 4, 1995 and the public hearing on February 15 1995; and WTEREAS, Chapter 5.04 which provides for the regulation of business is deleted and added as Chapter 3.01 to raise revenues for general municipal purposes; and WHEREAS, Chapter 9.16.010 B does not include the definition for a solicitor but refers to the definition in Chapter 5.04 which is to be deleted; NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Lodi as follows: 1. Chapter 5.04, Business Licenses, Taxes and Regulations, is hereby deleted. Title 5 is hereby retitled: "Permits and Regulations". 2. New Chapters 3.01, Business Tax Certification is hereby added. 3. Chapter 9.16.010B, Solicitors and Peddlers is hereby amended. CHAPTER 3.01 BUSINESS TAX CERTIFICATION ARTICLE I. GENERAL PROVISIONS SECTION 3.01.101. PURPOSE The provisions of this chapter are enacted solely to raise revenue for general municipal purposes and are not intended for regulation. SECTION 3.01.102 BUSINESS TAX CERTIFICATION REQUIRED Business taxes are hereby imposed upon all businesses, professions, trades, vocations, enterprises, establishments, occupations, or callings conducting business in the city to which a business tax may lawfully apply, in an amount established by Resolution of the City Council. It shall be unlawful for any person to transact and carry on any business, trade, vocation, enterprise, establishment, occupation, or calling in the City not otherwise exempt without first having procured a business tax certificate from the City or complying with all of the applicable provisions of this chapter. The business tax certificate shall be evidence only of the fact that such business tax has been paid. Neither the payment of the business tax nor the possession of the business tax certificate shall authorize, permit, or allow the doing of any act which the person paying or holding such business tax certificate would otherwise be entitled to do; nor shall it be construed as permission to conduct or carry on business at any place within the City where the conduct or carrying on of such business is prohibited or fails to comply with the City's zoning, planning, or building regulations, nor shall it be construed as permission to conduct or carry on a business in such a manner as to create or maintain a nuisance. SECTION 3.01.103. EXEMPTIONS The following persons and organizations are exempt from the provisions of this Chapter. A. MINORS UNDER THE AGE OF 18. Businesses owned and conducted by minors under the age of eighteen (18) years shall be exempt from the business tax provisions of this chapter where all of the following conditions exist and legal documentation is provided to support that: 1. All persons engaged in the operation of the business are under the age of eighteen (18) years, and 2. All persons engaged in the operation of the business have a bona fide ownership interest in the business, and 3. Gross receipts do not exceed $5,000 per year. B. CHARITABLE, RELIGIOUS, AND NONPROFIT ORGANIZATIONS. 1. Organization activities. The provisions of this chapter shall not be deemed or construed to require the payment of a business tax to conduct, manage, or carry on any business, occupation, or activity of any institution or organization recognized by the State of California or Internal Revenue Service of the United States as a "Domestic Non Profit Organization" to conduct business which is wholly for the benefit of charitable, religious, or nonprofit purposes and from which a profit is not derived, either directly or indirectly, by any person. 2. Nonexempt activities. The exemption provisions of this section shall not be construed to extend to any person, business, corporation, or organization receiving a fee, wage, stipend, salary, remuneration, compensation, or pay for performance of any business, occupation, or activity related to exempt organization activities. Any such person, business corporation, or organization shall be subject to the business tax provisions of this chapter and shall obtain a Business Tax Certificate prior to any business, occupation, or activity being undertaken in the City. 2 C. CONFLICTS WITH FEDERAL AND STATE LAWS OR CONTRACTUAL AG . The provisions of this chapter shall not be construed to require a person to obtain a business tax certificate prior to doing business within the City if such requirement conflicts with the applicable statues, laws, or constitution of the United States or the State of California or other contractual obligations or franchise agreements. The Finance Director may develop administrative guidelines concerning exemptions, apportionment, and any other matters which he determines as necessary for the lawful and effective implementation of this Chapter. D. CERTAIN ROME OCCUPATIONS 1. Every person commencing, transacting, and carrying on in the city any business in his home in a residential zone, not as a nonconforming use, whose annual gross receipts from such business is $5,000 or less shall not be required to pay a business tax. 2. Persons who by reason of age or infirmity are physically unable to earn a livelihood through ordinary means of labor or business, whose annual gross receipts from such business is five $5,000 or less shall not be required to pay a business tax. E. PUBLIC UTILITIES Public utilities engaged in providing services or commodities to the City of Lodi under a franchise agreement shall not be required to pay a business tax. F. DISABLED VETERANS Veterans of the armed forces of the United States qualified under the provisions of the Business & Professions Code Section 16001 shall not be required to pay a business tax. G. RESIDENTIAL RENTAL UNITS Persons renting four or less residential units within the City shall not be required to pay a business license tax. SECTION 3.01.104 DEFINITIONS For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows: A. 'Business" shall mean and include professions, trades, vocations, rentals, leases, enterprises, establishments, and occupations and all and every kind of calling, any of which is conducted for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit or a livelihood actually is earned thereby, whether paid in money, goods, labor, or otherwise, and whether or not the business has a fixed place of business in the City. B. "Finance Director" shall mean the individual designated by the City Manager to collect business taxes pursuant to the provisions of this chapter. C. "Gross Receipts" shall mean and include the total amounts received or receivable from sales, services, rentals, or leases in the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or a credit allowed, whether or not such act or service is done as a part of, or in connection with, the sale or rental of materials, property (real or personal), goods, wares, or merchandise. Included in "gross receipts" shall be receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, rented or leased, the cost of the materials used, labor and service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be the following: 1. Cash and jobber discounts (which reduce selling price and ultimate receipts from sale); 2. Any tax (such as a sales tax, use tax, gas tax, transient occupancy tax, real property transfer tax) which is measured by the sales price and is included in the purchase price and collected from the consumer or purchaser; 3. Any refund that is granted, either in cash or credit, to a purchaser who returns property upon the rescission of a contract of sale; 4. Amounts received by persons acting as agents, brokers or trustees, where such amounts have been collected for and are paid to another party (e.g., amounts collected by salesmen and transmitted to manufacturer or distributor; trust funds received and transmitted by trustee; fees separately itemized on statements and forwarded to a subcontractor or fee consultant as payment for services rendered, provided that a list of subcontractors or consultants and amounts paid is reported to the city; receipts collected for and subsequently paid to a lessor, provided that the name of the lessor and the amount paid is reported to the city); 5. Amounts received as refundable deposits, except those amounts that are forfeited and subsequently taken as business income; 6. Any credit that is granted for property provided by the consumer or purchaser as part of the purchase price (trade-in merchandise), provided that the value of property taken is reported in gross receipts when sold to someone else; 7. Bad debts, when credits are reported in total in the first year and prove uncollectible in a subsequent year; 8. Passive income (e.g., interest on investments, dividends, occasional sale of property or surplus equipment, etc.); and Constitution. 9. Receipts not taxable by virtue of provisions included in the Federal or State 4 E. "Person" shall mean and include all domestic and foreign corporations, associations, syndicates, joint-stock corporations, partnerships of every kind, clubs, Massachusetts trust, business, and other common law trusts, societies, and individuals transacting and carrying on any business in the City, other than an employee. F. "Sworn Statement" shall mean an affidavit sworn to before a person authorized to take oaths or a declaration or certification made under the penalty of perjury. G. "Gross receipts subject to the business tax" shall be that portion of gross receipts relating to business conducted within the City. For businesses with their headquarters located within the City of Lodi, their total gross receipts shall be deemed to be related to business conducted within the City unless an apportionment of gross receipts is requested by the business pursuant to. Section 3.01.509 of this chapter. SECTION 3.01.104 BUSINESS CLASSIFICATIONS For purposes of this chapter, the broad classifications used in this chapter are defined as follows: A. "Administrative Headquarters" - Any business operation where the principal business transacted consists of providing administrative or management related services such as, but not limited to, record keeping, data processing, research, advertising, public relations, personnel administration, legal and corporate headquarters services, to other locations where the operations of the same business are conducted which lead more directly to the production of gross receipts. _ B. "Contractors" - Any person who is licensed as a contractor by the State of California and who undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, is defined as a contractor. The term contractor includes subcontractor and specialty contractor. C. "Manufacturers" - Any person conducting, managing or carrying on a business consisting mainly of manufacturing, packing, or processing any goods, wares, merchandise or produce. D. " Professions" - Any person, group, association, partnership, firm or corporation engaged in a profession or vocation licensed by the State, related to a licensed profession or vocation, and/or requiring a period of specialized training such as, but not limited to, physicians, dentists, attorneys, and accountants. E. "Public Utilities" - Any person, including the City of Lodi, engaged in the business of providing utility services to the general public or to private businesses including such services as electrical, gas, sanitary and garbage,water, sewer, cable television and telephone. F. "Recreation and Entertainment" - Any person engaged in the business of providing directly recreation, entertainment, or amusement services. G. "Rental of Residential Property" - Any person engaged in the business of renting or letting a building or structure to a tenant for purposes of dwelling, sleeping or lodging (i.e., apartment, duplex, condominium or other residential property rental excluding hotels and motels). H. "Rental of Non -Residential Property" - Any person engaged in the business of renting or letting a building or structure to a tenant for purposes of conducting business (i.e., commercial retail space, office buildings, warehouses or other non-residential property use). Space occupied by the owner is exempt. I. "Retail" - Any person conducting, managing or carrying on the business consisting mainly of selling at retail any goods. J. "Services" - Any business providing services, repairs or improvements to or on real and personal property; renting or leasing personal property to businesses or persons; involving the operation of hotel or motel; providing services to persons such as, but not limited to, laundries, cleaning and dyeing, shoe repair, barber and beauty shops, photographic studios, and transportation. K. "Wholesale" - Any person conducting, managing or carrying on the business consisting mainly of selling at wholesale any goods_ L. "Miscellaneous" - Any person engaged in a business not specifically described by other provisions of this ordinance and not otherwise exempt. SECTION 3.01.105. SAVINGS CLAUSE The provision of this chapter are severable. Should any portion of this chapter be deemed invalid by a court of competent jurisdiction, the provisions of Chapter 3.01 shall remain in full force and effect. ARTICLE H. TAX AMOUNTS SECTION 3.01.201. TAX BASIS The amount of the business tax to be paid by the applicant shall be paid at a rate determined by the business classification established by resolution of the City Council. SECTION 3.01.202. TAX RATE The tax rate for all businesses shall be set by Resolution of the City Council. SECTION 3.01.203. MINIMUM TAX The minimum tax which shall be set by resolution of the City Council. In the first calendar year of business between January 1 and December 31 in the City of Lodi, no business will pay more or less than the minimum tax; and in no instance will the tax be prorated. R ARTICLE M. APPLICATION AND RENEWAL I SECTION 3.01.301. BUSINESS TAX CERTIFICATE APPLICATIONS Every person required to have a business tax certificate pursuant to the provisions of this chapter shall make a written application to the Finance Director and submit the following information: A. The nature or kind of business for which the business tax certificate is requested; B. The place where the business is to be conducted and, if the business is not to be conducted at a permanent location, the residence address, identified as such, of the owners of the business; C. If the application is made for the issuance of a business tax certificate to a person to do business under a fictitious name, the names, social security numbers, and residence addresses of the owner(s) of the business; D. If the application is made for the issuance of a business tax certificate to a corporation or partnership, the names, franchise tax number, and residence addresses of the officers or partners thereof; and E. Any further information which the Federal or State Taxing authority or the Finance Director may require to enable the issuance of the business tax certificate. SECTION 3.01.302 BUSINESS TAX CERTIFICATE RENEWALS In all cases, the applicant for the renewal of the business tax certificate required by the provisions of this chapter shall submit to the Finance Director a written statement, upon a form provided by the Finance Director, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth the actual gross receipts earned the preceding calendar or fiscal year as reported to any Federal or State taxing authority to which gross receipts are reported to enable the Finance Director to ascertain the amount of the business tax to be paid. Unless otherwise specifically provided, all annual business taxes required by the provisions of this chapter shall be due and payable on January 1 st of each year and shall be delinquent on January 31st of each year. No renewal of a business tax certificate shall be issued until payment in full of all delinquent business taxes, including accrued interest and applicable penalties thereon is received by the City. It shall be the responsibility of the applicant to ensure renewal of the business tax certificate. ARTICLE IV. BUSINESS TAX CERTIFICATE ISSUANCE SECTION 3.01.401. CONTENT All business tax certificates required by the provisions of this chapter, unless otherwise provided in this chapter, shall be prepared and issued by the Finance Director upon the payment to the City of the proper amount of business tax. Each business tax certificate shall state upon the face thereof the following: 7 A. The name of the person to whom the business tax certificate is issued B. The type of business taxed I C. The location or address of the business taxed D. The date of the expiration of the business tax certificate E. That the possession of the business tax certificate shall not authorize, permit, or allow the person to do any act which such person would not otherwise be lawfully entitled to do. SECTION 3.01.402. POSTING AND KEEPING All business tax certificates issued pursuant to the provisions of this chapter shall be posted and kept in the following manner: A. Any persons transacting and carrying on the business at a permanent location in the City shall keep such business tax certificate posted in a conspicuous place upon the premises where such business is carried on. B. Any persons transacting and carrying on business, but not operating at a permanent location in the City, shall keep such business tax certificate upon them at all times while transacting and carrying on such business. SECTION 3.01.403. DUPLICATES A duplicate business tax certificate may be issued by the Finance Director to replace any business tax certificate previously issued pursuant to the provisions of this chapter, which business tax certificate has been lost or destroyed, upon the filing of a statement of such fact and the payment of a duplicate fee set by resolution of the City Council. SECTION 3.01.404. BRANCH ESTABLISHMENTS A separate business tax certificate shall be issued for each branch establishment or location of business; provided, however, warehouses and distribution plants used in connection with, and incidental to, a business tax pursuant to the provisions of this chapter shall not be deemed to be separate places of business or branch establishments; and provided, further, any person conducting two (2) or more types of business at the same location and under the same management, or at different locations, but which businesses use a single set or integrated set of books and records, may elect to pay only one business tax calculated on all the gross receipts of the businesses, except that a fee set by resolution of the City Council shall be paid upon issuance for each additional branch or location. SECTION 3.01.405. CHANGE OF LOCATION No business tax certificate issued pursuant to the provisions of this chapter shall be transferable; provided, however, where a business tax certificate is issued for a person to transact and carry on a business at a particular place, such person, upon an application therefor and the payment of a fee set by resolution of the City Council, may have the business tax certificate reissued for transacting and carrying on of such business under such business tax certificate at some other location to which it is to be moved. N. ARTICLE V. ADMINIS'T'RATION SECTION 3.01.501. CERTIFICATION OF RECORDS A. CONCLUSIVENESS OF STATEMENTS. No statement required by the provisions of this chapter shall be conclusive as to the matters set forth therein, nor shall the filing of such statements preclude the City from collection by appropriate action such sums as are actually due and payable pursuant to the provisions of this chapter. Such statements and each of the several items therein contained shall be subject to certification by the Finance Director, the deputies of the Finance Director, or authorized employees or representatives of the City, who are hereby authorized to examine such books and records of any certificate holder or applicant for a business tax certificate as may be necessary in their judgment to verify or ascertain the amount of the business tax due. B. RECORD RETENTION. All persons subject to the provisions of this chapter shall keep complete records of all business transactions and shall retain such records for examination by the Finance Director, the deputies of the Finance Director, or authorized employees or representatives of the City, and maintain them for a period of at least three years from the annual due date of the federal tax return or the City business tax return, whichever time period is greater. Records which shall be maintained for audit purposes shall include State and Federal income tax returns, schedules and records included in such returns, and any and all work papers used to prepare such returns. C. EXAMINATION OF RECORDS. All business tax certificate holders, applicants for business tax certificates, and persons engaged in business in the City are hereby required to permit an examination of such books and records for the purposes set forth in this section during regular business hours and at reasonable times. D. EV112Z ST AND PENALTIES. If, subsequent to the examination, it is determined that the business has been delinquent or has non -reported or under -reported gross receipts, thereby underpaying business taxes, the certificate holder shall pay to the City within ten (10) days of notification of the determination of the amount of tax due, interest in the amount equal to the current rate for ninety (90) day Treasury Notes from the date the tax was due, and a penalty in the amount of the business tax due. Interest shall continue to accrue on the additional tax amount until such amount is paid in full. A mistake made in stating the amount of the business tax shall not, in any case, prevent or prejudice the Finance Director from collecting what is actually due from any person or entity carrying on a trade, calling, profession, or occupation subject to a business tax under this chapter. E. DETERMINATION OF TAX AMOUNTS DUE. If any person subject to the tax imposed by this chapter fails to submit information required, or if the Finance Director is not satisfied with records and statements filed, the Finance Director shall determine the amount of the business tax due from such person by means of such information as may be obtainable and shall mail a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Lodi, California, postage prepaid, addressed to the person at their last -known address. E SECTION 3.01.502. INFORMATION CONFIDENTIAL i It shall be unlawful for the Finance Director or designee, or any person having an administrative duty pursuant to the provisions of this chapter, to make known in any manner whatever the business affairs, operations, or financial information obtained by an investigation of the records of any person required to obtain a business tax certificate, or pay a business tax, or any other person visited or examined in the discharge or the official duty of the Finance Director, or of the amount or source of income, profits, losses, or expenditures, or any particular thereof, set forth in any statement or application, or amended statement or application, or copy of either, or in any book containing any abstract or particulars therein to be seen or examined by any person; provided, however, the provisions of this section shall not be construed to prevent: A. Disclosure to, or the examination of records and equipment by, another City official, employee, or agent for the collection of taxes for the sole purpose of administering or enforcing the provisions of this chapter or collecting the business taxes imposed by the provisions of this chapter; B. The disclosure of information to, or the examination of records by, Federal or State officials, or the tax officials of another city or county, if the reciprocal arrangement exists, or to a grand jury or court of law upon a subpoena; C. The disclosure of information and the results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law for proceedings brought to determine the existence of the amount of any business tax liability of such particular taxpayers of the City; D. The disclosure, after the filing of a written request to the effect, to the taxpayer, or to the taxpayers' successors, receivers, trustees, executors, administrators, assignees, or guarantors if directly interested, of information as to items included in the measure of any paid business tax, any unpaid business tax, or any amount of business tax required to be collected, including interest and penalties; further provided, however, that the City Attorney shall approve each such disclosure, and the Finance Director or designee may refuse to make any disclosure referred to in this subsection when, in their opinion, the public interest would suffer thereby; E. The disclosure of the names and business address of persons to whom business tax certificates have been issued and the general type and nature of their business; F. The disclosure, by way of public meeting or otherwise, of such information as may be necessary to the City Council in order to permit the City Council to be fully advised as to the facts if a taxpayer files a claim for the refund of business taxes, or submits an offer of compromise with regard to a claim asserted against them by the City for business taxes, or when acting upon any other similar matter; and City. G. The disclosure of general statistics regarding business taxes collected or business done in the 10 SECTION 3.01.503. FINANCE DIRECTOR ADJUSTMENT POWERS The Finance Director shall have the power, for good cause shown, and documented by the Finance Director as a permanent record: A. To extend the time for filing any required sworn statement; B. To waive any penalties which would otherwise have accrued; C. To adjust the amount of the business tax due; . D. To make refunds or prorations of taxes paid; and. E. To establish a basis or "proxy" to calculate gross receipts for those businesses and classes of business which do not have a "gross receipts" on which to base the tax, i.e. administrative headquarters. SECTION 3.01.504 DEBT TO CITY The amount of any business tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the City. A suit may be brought against any person to enforce the collection of the debt described in this Chapter in any court of competent jurisdiction. The conviction of any person for transacting any business without a certificate shall not excuse or exempt such person from payment of any license due or unpaid at the time of such conviction and nothing herein shall prevent a criminal prosecution for any violation of the provisions of this Chapter. SECTION 3.01.505. DELINQUENCIES AND PENALTIES For failure to pay the business tax required by the provisions of this chapter prior to the delinquency date, the Finance Director shall add a penalty of Ten and no/100ths ($10.00) or ten percent (10%) of the business tax, whichever is the greater, on the first day of each month after the delinquency thereof; provided, however, the total amount of such penalty to be added in no event shall exceed one hundred percent (100%) of the amount of the business tax due. SECTION 3.01.506. ENFORCEMENT A. DUTIES OF THE FINANCE DIRECTOR AND CHIEF OF POLICE. It shall be the duty of the Finance Director to enforce each and all of the provisions of this chapter, and the Chief of Police shall render such assistance in such enforcement as may from time to time be required by the Finance Director. B. INSPECTIONS. The Finance Director, in the exercise of the duties imposed by the provisions of this section, and acting through deputies of duly authorized assistants, shall have the right to enter and examine all places of business free of charge during normal business hours to ascertain whether the provisions of this chapter are being complied with. 11 C. PENALTY FOR VIOLATION. Any person who violates any provision of Section 3.01.102 by transacting and carrying on any business, trade, vocation, enterprise, establishment, occupation, or calling in the City without first having procured a business tax certificate is guilty of an infraction and is subject to punishment as provided for in Chapter 1.12 of this municipal code. SECTION 3.01.507 EVIDENCE OF DOING BUSINFSS When any person, by the use of a sign, circular, card, telephone book, newspaper, other publication, or advertising media, shall advertise, hold out, or represent that they are in business in the City, or when any person holds an active license or permit issued by a government agency indicating that they are conducting a business in the City, and such person fails to deny, by a sworn statement given to the Finance Director or designee, that they are not conducting a business in the City after being requested to do so by the Finance Director or designee, then these facts shall be considered prima facie evidence that such person is conducting a business in the City. SECTION 3.01.508. REMEDIES CUMULATIVE. All remedies prescribed by the provisions of this chapter shall be cumulative, and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. SECTION 3.01.509 APPORTIONMENT When the business tax imposed by this Chapter cannot be enforced without there being an apportionment according to the amount of business done in the City of Lodi, apportionment rules shall be established by the Finance Director. The Finance Director shall conduct an investigation and shall fix as the business tax for the applicant an amount that is reasonable and nondiscriminatory or, if a business tax has already been paid, shall order a refund of the amount over and above the business tax so affixed. In fixing the business tax to be charged, the Finance Director shall have the power to base the business tax upon a percentage of gross receipts, operating expenses, floor space, payroll, number of employees, business taxes paid to other cities, or any other measure which will assure that the business tax assessed shall be uniform with the amount of business done in the City of Lodi, or of businesses of a like nature, so long as the amount assessed does not exceed the business tax set forth in this Chapter. ARTICLE VI. IMPLEMENTATION SECTION 3.01.601. IMPLEMENTATION OF REVISED PROVISIONS For business tax renewals for which business taxes were paid prior to March 1, 1995 or due between January 1, 1995 and March 1, 1995, the tax rate upon renewal will be at the new rate provided in SECTION 3.01. Chapter 9.16.010 Definitions, is hereby deleted. 9.16.010 Definitions. Chapter 9.16.010 Definitions, is hereby added to read as follows: 12 9.16.010 Definitions. i B. "Solicitor" means any person who takes orders, or offers to sell or take orders for any goods wares merchandise or think for future delivery or for services to be performed at anyplace in the city other than a fixed place of business, and who does not follow a fixed route or serve prospective purchasers in the city regularly or continuously. "Solicitor" does not include salesmen or agents for wholesale houses or firms who sell to retail dealers for resale or sell to manufactures for manufacturing purposes or to bidders- for public works or supplies. or newspaper carriers. A synopsis of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published once in full, at least three (3) days prior to the final passage in the Lodi News Sentinel, a newspaper published and circulated in said city, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and shall be available to any interested member of the public. INTRODUCED AND PASSED TO PRINT by the Council of the City of Lodi at its meeting held on the 15th day of February, 1995, on motion of , seconded by AYES: NOES: ABSENT: ATTEST: CITY CLERK APPROVED: CITY MANAGER CITY ATTORNEY and on the following roll call vote: 13 MAYOR D L E -F E17 5.04.01 Chapter 5.04 5.04.250 Application—O ult arts—Peddler nd BUSINESS LICENSES solicitors. GENERALLY 5.04.260 Stickers orm and content Sections: 5.04.270 Stick s—Vehicle- 5.04.010 Purpose. Iss ce. 5.04.020 Definitions. 5.04.280 ckers—Vehicle- 5.04.030 Required. Additional vehicles. 5.04.040 Tax—Fixed place of 5.04.290 Stickers—Vehicle— business. Operation without. 5.04.050 Tax—No fixed place of 5.04 00 Stickers—Vending business. machine—Issuance. 5.04.060 Tax—Flat amount. .04:310 Stickers—Vending 5.04.070 Tax—Grape Festival. machine—Additional 5.04.080 Tax—Home machines. occupations. 5.04.320 Stickers—Vending 5.04.090 Exemptions—Generally. machine—Operation 5.04.100 Exemptions—Delivery without. business. 5.04.330 Revocation and 5.04.110 Exemptions—Chariti suspension. 5.04.120 Exemption —Re us, 5.04.340 Examination of records. educational, frate al, 5.04.350 Appeals. governmental 5.04360 Administration and organization enforcement powers. 5.04.130 Exemptio —Garbage 5.04.370 Violation—Infraction. collector . 5.04.140 Exem ions—Utilities, 5.04.010 Purpose. ban , insurance This ordinance codified in this chapter c panies. was enacted solely to raise revenue for 5.04.150 ontents. municipal purposes, and this chapter is 5.04.160 Payment of fee. not intended for the purpose of regula- 5.04.17 Delinquency. tion. (Prior code § 12-2) 5.04. 0 Branch establishments. 5.0 .190 Multiple businesses at 5.04.020 Definitions. one location. For the purposes of this chapter, the 5.04.200 Transfer. following words and phrases shall have 5.04.210 Carrying or posting. the meanings respectively ascribed to 5.04.220 Application—Generally. them by this section: 5.04.230 Application—New A. Average number of employees, businesses. fixed place of business: "Average number 5.04.240 Application—No fixed place of business. 59 (Lodi 9-97) OEL E TE 5.04.020 of employees" for any business having a tired place of business in the city means the average number of persons emploved daily in the city in the applicant's busi- ness for the twelve-month period ending on the last day of the month next preced- ing the date of such application, and shall be determined by ascertaining the total number of hours of service performed by all employees during such year, exclusive of overtime, and dividing the total number of hours of service thus obtained by the number of hours constituting a day's work, according to the custom or laws governing such employments, and by again dividing the sum thus obtained by the number of working days in such year. In computing the average number of employees, fractions of numbers shall be excluded. B. Average number of employees, no fixed place of business: "Average number of employees" for any business not hav- ing a fixed place of business in the cit means the number of persons employ d daily in the city in the applicant's usi- ness for the period during whit such applicant conducts such busin s in the city and shall be determined ascertain- ing the total number of ho rs of service. exclusive of overtime, rformed by all such employees durin the three days, or less, on which the reatest number of persons are so a ploved, and dividing the total numb of hours of service thus obtained by a number of hours con- stituting a ay's work, according to the custom laws governing such employ- ment and by again dividing the sum thu obtained by the number of working d• - s upon which the total hours of serv- ce is based. In computing the average (Lodi 9-87) 60 number of employees, fractions of num- bers shall be excluded. C. "Business" means professio s. trades, occupations and all and very kind of calling carried on for ofit or livelihood. D. "Employee" means 11 persons engaged in the operation r conduct of any business, whethe as owner, any member of the own s family, partner, agent, manager, so ' itor and any and all other persons a ploved or working in the business. . E. "Fixe place of business" means a place of siness in the city, regularly kept o en with someone in charge there for the transaction of the particu- lar usiness engaged in during the hours c stomary to transact such business, and shall not so qualify unless and until such place of business has been so operated for a period of not less than six months. F. "Peddler" means any person who sells and makes immediate delivery, or offers for sale and immediate delivery, any goods, wares. merchandise or thing, in the possession of the seller, at any place in the city other than from a fixed place of business, and who does not follow a fixed route or serve purchasers in the city regu- larly and continuously. G. "Person" means all domestic and foreign corporations: associations: svndi- cates: joint stock corporations, clubs: Massachusetts, business or common law trusts: societies and individuals com- mencing, transacting and carrying on any business in the city. H. "Solicitor" means any person who sells or takes orders, or otTers to sell or take orders for any goods. wares, mer- chandise or thing, for future delivery, or DELETE 5.04.020 for services to be performed, at any place this chapter, shall constitute a s arate in the city other than a fixed place of violation of this chapter for i ch and business, and who does not follow a fixed everyday that such business is arried on. route or serve prospective purchasers in (Prior code § 12-3) the city regularly or continuously, or any person seeking to: 5.04.040 Tax—Fixe place of 1. Obtain prospective customers for busines application or purchase of insurance of Everyperson mmencing, transact - any type, kind or publication; or ing and carryi on at a fixed place of 2. Obtain subscriptions to books, business in city any businesses other magazines, periodicals, newspapers and than tho enumerated in Sections every other type or kind of publication 5.04 06 and 5.04.070 shall pay an where the aforementioned is not to be annu icense tax based upon the aver - delivered on a fixed route; or age umber of employees employed in 3. Obtain gifts or contributions of s business of fifteen dollars for the money, clothing or any other valuable rst employee, three dollars each for the thing for the support or benefit of any next nine employees, one dollar each for charitable or nonprofit association, orga- the next forty employees and fifty cents nization, corporation or project. each for each additional employee. (Prior "Solicitor" shall not include salesmen code § 12-4) or agents for wholesale houses or firm who sell to retail dealers for resale or 11 to manufacturers for manufacturin ur- 5.04.050 Tax—No fixed place of poses or to bidders for public w rks or business. supplies, or newspaper carri s. (Ord. Every person commencing, transact - 1352 § 12, 1935: (Prior code 12-1) ing and carrying on at other than a fixed place of business in the city any busi- 5.04.030 Required. nesses other than those enumerated in There is imposed u on all business in Sections 5.04.060 and 5.04.070 shall pay the city license tax in the amount pre- an annual license tax based upon the scribed by this c pter. It is unlawful for average number of employees of thirty any person, eit er for himself or for any dollars for the first employee, six dollars other perso to commence, transact or each for the next nine employees, two carry on y business in the city not dollars each for the next forty employees exclude by this chapter, without first and one dollar each for each additional havin rocured a license from the city to employee. (Prior code § 12-5) do , or without complying with any a d all regulations contained in this 5.04.060 Tax—Flat amount. hapter. The carrying on of any business Every person commencing, transact - without first having procured a license ing and carrying on in the city any from the city to do so, or without com- business enumerated in this section shall pliance with any and all regulations of pay a license tax as follows: 61 (Lod( (0-85) DELETE 5.04.060 Business Period Tax Amusement rides and sim- ilar concessions, chil- dren's, per each ..... month $ 5.00 Amusement rides and sim- ilar concessions, adult, per each ........... month 10.00 Astrologers, fortunetellers, etc . ............... quarter 250.00 Auctioneer ............ quarter 25.00 Bowling .............. year 24.00 Bowling and pool or bil- liards .............. year 30.00 Boxing and wrestling .... day 20.00 Carnivals ............. day 100.00 Circuses and side shows . day 100.00 Crane, claw or grab machines, per machine quarter 25.00 Dances ............... day 5.00 Dice or card games, per table .............. quarter 25.00 Junk dealer (resident) ... quarter 15.00 Junk dealer (nonresident) quarter 30.00 Pawnbroker ........... quarter 15.00 Peddlers and solicitors .. day 10.00 Peddlers and solicitors, per- sonally manufactured goods or produce .... quarter 6.00 Pool, billiards .......... year 24.00 Swimming pools ....... year 24.00 Theaters, occasional ..... day 5.00 (Prior code § 12-6) 5.04.070 Tax—Grape Festival. For the purpose of this cha er, the Lodi Grape Festival and at nal Wine i , referred to in this se ion as "fes- " shall be consider to be a fixed of business withi hecityandshall o the directoro financethesumof y -five dollar per day during the l operatio fthe festival. This sum not con tute a tax against the fes - but s 11 be paid on behalf of all ssi aires, exclusive of carnivals al 'ed side shows, officially listed a director of finance by the festival to the first day of actual operation, transact their business wholly upon (Lodi ta85) 62 grounds operated by the festival. Each of the officially listed /licenses sionaires shall upon payment. by tval of the s of twenty-five dollaay, been tied to such license as mthis ch ter be required. Each sucses 11 be ineffect during the pf a ual opera- tion ofthe festival fss conductedon festival grounds ll be displayedand be subject to ar provisions ofthis chapter. (Prior12-7) 5.04.080 Ta Home occupations. Every per n' commmencing, trans- acting an carrying on in the city any busin(e In his home in a residential zo/al f as a nonconforming use, whose anross receipts from such business is ne thousand dollars or less shall be xempt from the payment of a license tax, but shall be required to obtain and display a license issued by the director of finance without charge. Where the annual gross receipts from such business exceeds one thousand dollars, a license tax as prescribed in Section 5.04.080 shall be imposed. Persons who, by reason of age or infirmity, are physically unable to earn a livelihood through ordinary means of labor or business shall be exempt from any tax on business con- ducted from their own homes, as a home occupation, but shall be required to obtain a license to be issued without charge. (Prior code § 12-8) 5.04.090 Exemptions—Generally:' Persons in the categories set out in Sec- tions 5.04. 100 through 5.04.140 shall be exempt from the payment of a license tax, but shall be required to obtain and display a license, which license shall be DELETE issued free of charge by the director of finance. (Prior code § 12-9) 5.04.100 Exemptions—Delivery business. Persons operating without a fixed place of business in the city whose sole business in the city consists of delivering to places of business within the city shall 5.04.090 be exempted from payment of a 1' ense tax; provided, that such person solicit- ing and making immediate de ' ery shall be required to pay an ann license as prescribed in Section 5.0 .040. For the purposes of this sectio the city govern- ment, public library nd public schools shall be considere o be places of busi- ness. (Prior code 12-10) 62-1 (Lodi lass) DELETE 5.04.110 Exemptions—Charities. Any charitable institution, organiza- tion or association organized for charitable purposes and conducted for charitable purposes only shall be exempted from payment of a license tax. (Prior code § 12-I1) 5.04.120 Exemptions—Religious, educational, fraternal, governmental organizations. Any religious, fraternal, educational, military, state, county or municipal orga- nization for the conduct of any business or entertainment, which is open only to the members thereof, or which is con- ducted for the benefit of such organiza- tion and not for the private gain of any person, shall be exempted from payment of a license tax. (Prior code § 12-12) 5.04.130 Exemptio/aage collectors Any person collr ge or refuse under contracent with the city shallbe exemthe pay- ment of a license taortion of such business done ucontract or agreement. (Prior13) 5.04.140 Exe tions—Utilities, ba s, insurance companies. Any publ' utility which pays to the city a tax nder a franchise or similar agreem t; banks, as provided by the State onstitution. insurance com- pa 'es, as provided by the State Constitu- t n: and any person whom the city is not authorized to license under any law or the Constitution of the United States or the state is exempt from the payment of license tax. (Prior code § 12-14) 63 5.04.110 5.04.150 Contents. r/ All licenses shall be prep ed and issued by the director of finan and each license shall state upon th face thereof the following: A. Name of the pe on to whom the license is issued; B. Kind or kin s of business licensed thereby; C. Locatio of such business; D. Date f expiration of such license; E. Su other information as the direct of finance requires. (Prior code § 12-1 .04.160 Payment of fee. ✓ All licenses shall be paid in advance in lawful money of the United States at the office of the director of finance. When a license tax is per day, it shall be due and payable each day. Quarterly licenses shall be due on the first day of January. April, July and October. Annual licenses shall be due on the first day of January, and may be prorated to the nearest quarter - year. (Prior code § 12-16) 5.04.170 Delinquency. Every license tax which is not paid when due and payable is delinquent, and if such license tax is not paid within thirty days from the time it is due and payable, the director of finance..shall add to such tax and collect a penalty often percent of such tax for each month, or fraction thereof, during which such tax is delin- quent. (Prior code § 12-17) 5.04.180 Branch establishments. Separate licenses must be obtained for each branch establishment or location, as if each branch establishment or location D El ETE 5.04.180 were a separate business; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under this chapter are not separate places of business or branch establishments. (Prior code § 12-18) 5.04.190 Multiple businesses at one location. ✓ Whenever any person is engaged in two or more businesses at the same loca- tion, such person shall be issued one license which shall specify on its face all such businesses, and the license tax to be paid shall be computed as if one business were being conducted at such location, except that businesses listed in Section 5.04.060 shall in every case be regarded as separate businesses. (Prior code § 12-19) 5.04.200 Transfer. ✓ No license issued pursuant to this chapter shall be transferred. except and the following conditions: A. When a licensee transfers hi usi- ness from one location to anot in the city, the license previously iss d maybe amended to authorize the c duct of the business at the new locat' n. B. When a licensee ho conducts a business from a fixe lace of business in the city makes a ona fide sale of the business, an a ended license may be issued to auth rize the purchaser to con- duct such b iness at such location, upon the surre er of the old license. C. a license transfers authorized in this ection may be obtained upon ap ication therefor to the director of -nance and payment of a fee of one dol- lar. (Prior code § 12-20) 64 5.04.210 Carrying or posting. A. Every person having a lice e under the provisions of this chapte nd carrying on a business at a fixed ace of business shall keep such licen posted and exhibited in some cons ' uous part of the business. B. Every person havi such a license and not having a fix place of usiness shall carry such lic se with him at all times, or shall ha attached to the vehi- cle or vehicles ed in such business the windshield s 'cker provided for in Sec- tion 5.04.2 .(Prior code § 12-21) 5/Eery Application—Generally. person required to have a lihall make application to the irector of finance of the city. Such application shall be a written statement upon a form provided by the director of finance and shall set forth such informa- tion as may be necessary property to determine the amount of the license tax to be paid by the applicant. (Prior code § 12-22(a)) 5.04.230 Application—New businesses. Every person making application for a license for a business taxable under Sec- tion 5.04.040, which has not been estab- lished in the city for a sufficient length of time to meet the requirements of Section 5.04.020(E), shall pay to the director of Finance the minimum license tax for the business in which he is engaged. The tax thus paid shall be tentative only. Such licensee shall within thirty days after the expiration of the period for which the license was issued, furnish the director of finance with an application as prescribed DELEFE in Section 5.04.220, showing the average number of employees during the period of such license. The license tax shall be ascertained and paid upon the basis of such average number of employees. credit being given for the minimum license tax previously paid. Every person making application under this section shall furnish such information as may be deemed necessary by the director of finance to provide satisfactory proof of intent to establish a fixed place of busi- ness in the city. (Prior code § 12-22(b)) 5.04.240 Application—No fixed place,,-" of business. Every person making application for a license for a business without a fixed place of business in the city and not included in Section 5.04.060 shall pay to the director of finance the minimu license tax for the business in which is engaged. The tax thus paid shall be nta- tive only; and, prior to the expir ion of the period for which such Ii nse was issued, such person shall rnish the director of finance with a pplication as prescribed in Section 5 4.220, showing the average number o employees as pro- vided in Section 5. .020(B). The license tax shall be asc ained and paid upon the basis of ch average number of employees, redit being given for the minimu license tax previously paid. (Prior c de § 12-22(c)) 5.0.250 Application—Occult arts— Peddlers and solicitors. In addition to the requirements of Sec- tion 5.04.220, applicants for a license to conduct the businesses of astrologers, fortunetellers, peddlers and solicitors 65 5.04.230 must also file with the director of f ance a sworn application, in writing, a form to he furnished by the director f finance, /together application shall give a following ation: ame and des ption of appli- ddress, leg and local; n the ca of peddlers and solic- brief scription of the nature of ines nd the goods to be sold and. lov d, the name and address of the er, together with credentials shing the exact relationship; The length of time for which the o do business is desired; E. If a vehicle is to be used, a descrip- tion of same, together with the license number or other means of identification; E. A photograph of the applicant, taken within sixty days immediately prior to the date of the filing of the application, which picture shall be two by two inches showing the head and shoul- ders of the applicant in a clear and dis- tinguishing manner; F. The fingerprints of the applicant, G. A statement as to whether or not the applicant has been convicted of any felony, misdemeanor or violation of any municipal ordinance, the nature of the offense and the punishment or penalty assessed therefor. (Prior code § 12-22(d)) 5.04.260 Stickers—Form and content. Each sticker required by this chapter shall have thereon the words "LODI. CALIFORNIA." or any abbreviation thereof, and shall be of such form and color and contain such information as the director of finance shall determine. (Prior code § 12-23) DELETE 5.04.270 5.04.270 Stickers—Vehicle— Issuance. Upon the issuance of a license, the director of finance shall deliver to the licensee one windshield sticker for each commercial vehicle used by the licensee in the conduct of his business, which windshield sticker shall be attached to the windshield of such vehicle. In the event such vehicle does not have a windshield, such sticker shall be attached in a con- spicuous place in the operator's compart- ment of such vehicle. (Prior code § 12-24) 5.04.280 Stickers—Vehicle— Additional vehicles. If, subsequent to the issuance of any license and prior to its expiration date, any licensee shall use any commercial vehicle in his business for which a wind- shield sticker has not been issued, he shall procure a windshield sticker for such vehicle from the director of finance. Th director of Finance shall furnish s h windshield sticker without cost up o the production of satisfactory proo of the use of such vehicle by the licen e. (Prior code § 12-25) / J 5.04.290 Stickers— ehicle— Operatio without. It is unlawful f any person to drive, operate or use, r cause to be driven, operated or u d. any commercial vehi- cle in the co duct of his business, without a sticker eing attached as required by this c pter, or to remove, deface or cove up such sticker, or to place the sa a upon any vehicle other than a vehi- e used by the licensee in his business. (Prior code § 12-26) 5.04.300 Stickers—Vending ✓ machine—Issuance. Upon the issuance of a licens ,the director of finance shall delive to the licensee one sticker for eac vending machine used by the license in the con- duct of his business, whi sticker shall be attached in a cons 'cuous place on such machine. (Prior ode § 12-27) 5.04.310 Suers—Vending machines. /Iicensee uent to the issuance of any prior to its expiration date, shall use any vending n his business for which a sticker has not been issued, he shall pro- cure a sticker from the director of Finance. The director of finance shall fur- nish such sticker without cost upon the production of satisfactory proof of the use of such machine by the licensee. (Prior code § 12-28) 5.04.320 Stickers—Vending machine—Operation without. It is unlawful for any person to operate or use, or cause to be operated or used, or offer for operation and use in the conduct of his business any vending machine without a sticker being attached as required by this chapter, or to remove, deface or cover up such sticker. or place, cause to be placed or permit the placing of the same upon any such machine other than one used by the licensee in his busi- ness. (Prior code § 12-29) DELETE 5.04.330 Revocation and suspension.----- The uspension.✓The city council shall have the author- ity to revoke or suspend any license issued under the provisions of this chap- ter upon competent information that the licensee has not complied or is not com- plying with any provision of this chapter, any other city ordinance or any require- ment of a competent governmental juris- diction. Any such action taken by the city council shall be in addition to any actions taken or penalties assessed as a result of noncompliance with any law or ordi- nance. (Prior code § 12-30) 5.04.340 Examination of records.-*" For the purpose of ascertaining the correctness of any affidavit filed, or the amount of any license tax paid/ndmay the direc- tor of finance, or aon designat by him for that purauthoriz to examine any paperss and emo- randa bearing upontter, nd may require attendance e on having knowledge in the prnd may takehis testimony witence thereto,with power to admoath to suchperson or persons. (ode § 12-31) 5.04.350 App als. Any perso aggrieved by any decision of an adT&istrative officer or agency with res ct to the issuance or refusal to issues ch license may appeal to the city cou�p6il by filing a notice of such appeal wA the city clerk. The city council shall thereupon fix a time and place for hear- ing such appeal. The city clerk shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Lodi. California, postage 5 prepaid, addressed to such per n at his last -known address. (Prior c9de § 12-32) 5.04.360 Administratiand — enforceme powers. In addition to a other powers con- ferred upon him, a director of finance shall have th power for good cause shownto ex nd the time for filing any required s orn statement for a period of Yethe ding thirty days, and in any to waive any penalty that e otherwise accrued, and shall rther power, with the consent council, to compromise any claim as to the amount of license tax due. He may also require evidence of com- pliance with other ordinances of the city and may make such stipulations as to the location, manner and conduct of busi- nesses as may be reasonable, necessary and in conformity with the ordinances, laws and the police powers of this city as a prerequisite to the issuance of any license prescribed in this chapter. (Prior code § 12-33) 5.04370 Violation—Infraction. Any violation of this chapter is an infraction unless the defendant has been convicted of three or more violations of a particular section within the twelve- month period immediately preceding the commission of the offense, and then the violation of this chapter constitutes a misdemeanor. (Ord. 1397 § 1, 1978) 67 1 Lodi 9-87) RESOLUTION NO ......................... A RESOLUTION OF THE LODI CITYOUNCIL SETTING THE TAX RATES FOR THE BUSINESS LICENSE TAX PROVIDED IN NEW CHAPTER 3.01 OF THE LODI MUNICIPAL ORDINANCE AND WAIVING LATE PENALTIES ON BUSINESS LICENSE TAXES DUE JANUARY 1, 1995 REQUIRED UNDER CHAPTER 5.04 OF THE LODI MUNICIPAL CODE WHEREAS, the City Council adopted Chapter 3.01 of the Lodi Municipal Code, Business Tax Certification; and WHEREAS, Article II, Tax Amounts, requires the business tax rates to be set by resolution of the City Council, and WHEREAS, the City Council has held a public meeting on January 1, and and a public hearing on February 15, 1995 to take public testimony; and, WHEREAS, at a special City Council meeting on December 13, 1994, the City Council directed the Finance Department to delay the collection of the business license tax due January 1, 1995 until after hearings on a new business license ordinance and tax rates. NOW, THEREFORE BE IT RESOLVED by the Lodi City Council as follows: 1. The tax rates required by Article II, Chapter 3.01, Business Tax Certification, and listed in Table 1 are hereby adopted. 2. The estimated revenue from the business license tax is $600,700. 3. Late penalties due January 1, 1995 under the provisions of Chapter 5.04, Business Licenses, Taxes and Regulations, are waived. Dated: I hereby certify that Resolution No. was passed and adopted by the City Council of Lodi in a regular meeting held February 15, 1995 by the following vote: Ayes: Council Members - Noes: Council Members - Absent: Council members - Jennifer Perrin City Clerk BUSINESS LICENSE TAX RATES TABLE 1 GROUP 1 Retail and Services Gross Receipts Gross Receipts 1 $.75/$1,000 ' $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 $.90/$1,000 1 $.75/$1,000 1 $.60/$1,000 GROUP2 Contractors Gross Receipts Rental Residential Property 1 $.75/$1,000 ' Rental Non -Residential Property $30 $.40/$1,000 $.35/$1,000 $.01/Sq Ft Gross Receipts $30 $.60/$1,000 $.55/$1,000 $.50/$1,000 Public Utilities Gross Receipts Administrative Headquarters 1 $.75/$1,000 1 $.60/$1,000 Gross Receipts $30 $.40/$1,000 $.35/$1,000 $.01/Sq Ft Professions Gross Receipts $30 $.90/$1,000 1 $.75/$1,000 1 $.60/$1,000 Recreation and Entertainment Hotel/Motel Services Automobile Dealers $30 $.02/ Sq Ft $.015/Sq Ft $.01/Sq Ft Gross Receipts $30 $.25/$1,000 $.20/$1,000 $.15/$1,000 GROUP 6 Manufacturers/Wholesalers Square Feet of Building Space Occunied ** $30 $.02/ Sq Ft $.015/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 GROUP Retail and Services Gross Receipts 330 $160 million $ 144,000 1 $120,000 $ 96,000 $0 to $200,000 1,660 $51 million $ 66,400 $ 49,800 $ 33,200 $200,001 to $500,000 475 $170.4 million $ 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 nullion $ 208,800 $191,400 $174,000 $5,000,001 and greater 12 $123 million 1 $ 110,700 1 $ 92,250 1 $ 73.800 GROUP2 Contractors Rental Residential Property 330 $160 million $ 144,000 1 $120,000 $ 96,000 Rental Non -Residential Property 5 $51 million $ 20,400 $ 17.850 $ 15,300 Gross Receints 1025 $170.4 million $ 102.240 $ 93,720 $ 85.200 GROUP 3 Public Utilities Administrative Headquarters 330 $160 million $ 144,000 1 $120,000 $ 96,000 Gross Receipts 5 $51 million $ 20,400 $ 17.850 $ 15,300 GROUP4 Professions Gross Receipts 330 $160 million $ 144,000 1 $120,000 $ 96,000 GROUP 5 Recreation and Entertainment Hotel/Motel Services Automobile Dealers 330 20,000 Sq Ft $132,000 $99,000 $66,000 Gross Receipts 94 $106 million $ 26.510 $ 21.208 $ 15.906 GROUP 6 Manufacturers/Wholesalers Square Feet of Building Space Occupied 330 20,000 Sq Ft $132,000 $99,000 $66,000 1 CITY Olb LODI NOTIG_] OF PUBLIC HEARING • Date: January 4,1995 (Public Meeting) Carnegie Forum February 16, 1995 (Public Hearing) 305 West Pine Street, Lodi Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Perrin City Clerk Telephone: 209 333-6702 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. JAWYCLRWORMSINOTICE2.DOC 12/20/94 PUBLIC HEARING ' `TICE PROPOSED BUSIN-4S LICENSE 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: ?Jife r M.rrinlerk Dated: December 21, 1994 Approved as to form: Bobby W. McNatt City Attorney JACITYUMFORMMOTICE2.1)OC 12/20/94 BUSINESS LICENSE TAX RATES TABLE 1 GROUP Retail and Services Gross Receipts $30 ' 1 $.75/$1,000 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 nullion $30 $.60/ $1,000 $.55/$1,000 $.50/$1,000 $5,000,001 and greater $30 $.90/$1,000 1 $.75/$1,000 $.60/$1,000 GROUP 2 Contractors Rental Residential Property $30 ' 1 $.75/$1,000 1 Rental Non -Residential Property $30 $.40/$1,000 $$.35/$1,000 $.30/$1,000 Gross Receipts $30 $.60/$1,000 $.55/$1,000 $.50/$1,000 Public Utilities Administrative Headquarters $30 $.90/$1,000 1 $.75/$1,000 1 Gross Receipts $30 $.40/$1,000 $$.35/$1,000 $.30/$1,000 GROUP4 Professions Gross Receipts $30 $.90/$1,000 1 $.75/$1,000 1 $.60/$1,000 Recreation and Entertainment Hotel/Motel Services I 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 GROUP6 Manufacturers/Wholesalers Square Feet of Building Space I 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 $3,000 per year arl 000`99$ 000`66$ 000`Z£I$ ;d bS 000`OZ 0££ paidnoop 00011LI$ 1 008`802 $ saaleaQ apgowolnV 851 aaBds Btt.pimg3o wag aiBnbs 009`LI $ OOZ`tZ $ saapuas ialomalog OZZ sjaiesaioqA4/s.iaanl3s,InuvW 906`9I $ 9 dnOZiO SOVIZ $ OIS`9Z $ uo'pnu 90i$ V6 sldpoag ssoto ssojf) 00011LI$ 1 008`802 $ saaleaQ apgowolnV 851 suoissajol'I 009`LI $ OOZ`tZ $ saapuas ialomalog OZZ sai�il!;n oilgnd 05L`£Z $ luawumpalua pue uoileaaoag S dn02I0 000`96 $ 000`OZI$ 000`17N $ UOIII!EU 091$ O££ ssojf) 00011LI$ 1 008`802 $ uotii?Eu 8b£$ 851 suoissajol'I ti aflouJ 00£`SI $ 098`Li $ OOVOZ $ UO1I1TIll IS$ S sidpoag sso D 00011LI$ 1 008`802 $ uotii?Eu 8b£$ 851 saaVenbpeag anlls.ilsluluipy 009`LI $ OOZ`tZ $ 000`££ $ OZZ sai�il!;n oilgnd £ dnow OOZ`S8 $ OZL`£6 $ ObZ`ZOI $ 01II!lu VOLI$ SZOi sldiaoag ssoi0 00011LI$ 00t`161S 008`802 $ uotii?Eu 8b£$ 851 Spado.ad lelluapisag-uou pluag 009`LI $ OOZ`tZ $ 000`££ $ OZZ ,Cjaadoza leiluapisag ILIuag 05L`£Z $ OSZ`££ $ OSL`Zb $ SLb sjolaelluoD Z dnouf) 008`£L $ 09Z`Z6 $ OOL`OI I $ UO1THW CZ I$ ZI Jolows PUB 100`000`S$ 00011LI$ 00t`161S 008`802 $ uotii?Eu 8b£$ 851 uoiliP S$ 0; 100`006$ 009`LI $ OOZ`tZ $ 000`££ $ OZZ 000`006$ 01100'009$ 05L`£Z $ OSZ`££ $ OSL`Zb $ SLb 000`005$ 0; i00`OOZ$ OOZ`££ $ 008`6b $ OOb`99 $ 099`I 000`002$ 0; 0$ sldtaoag ssojo saoinlas pus 1i18lag I dn02I0 Z a'Igvs. SaflN3AaH xbs 3SMaDI'I SSaNUSng