Legislation Details

File #: HIST-3051    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 7/24/2006 Final action: 7/24/2006
Title: Introduction of Ordinance Amending Section 11.01.220 of the Culver City Municipal Code relating to Business Tax Certificate Application/Renewal Processing Fee; and Adoption of Resolution to Increase the Business Tax Application/Renewal Processing Fee and to Establish a Business Planning Review Fee.
Attachments: 1. A-5__06_07_24_CTO_Business Tax Plan Proc Fees.doc, 2. A-5 Business Tax Ordinance.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION: Staff recommends the City Council consider 1) the introduction of an Ordinance amending Culver City Municipal Code §11.01.220 relating to the business tax certificate application/renewal processing fee (Attachment 1); and 2) the adoption of a Resolution to increase the business tax certificate application/renewal processing fee and establish a business planning review fee (Attachment 2). BACKGROUND: The following proposal was submitted to the City Council for consideration in “concept form” at the time of adoption of the City’s 2006/07 budget on June 26, 2006. The proposal is now being brought forward per City Council’s instruction for further consideration and direction to staff on its implementation. Every year approximately 2,400 new businesses apply for a business tax certificate from the City’s Treasury Division. Each business is unique, and so is the manner in which each business is charged for its presence in any particular city. The Treasury Division uses substantial staff resources to explain the City’s rates and processes to every new business coming into the City of Culver City so that the business understands the cost of doing business in the City. While some of this communication is initially over the phone, in the final stages it is normally at the public counter. Meeting Date: 07/24/06 Item Number: A-5 AGENDA ITEM: 1) Introduction of Ordinance Amending Section 11.01.220 of the Culver City Municipal Code relating to Business Tax Certificate Application/Renewal Processing Fee; and 2) Adoption of Resolution to Increase the Business Tax Application/Renewal Processing Fee and to Establish a Business Planning Review Fee. Contact Person/Dept.: Nagam Rao/City Treasurer's Office Phone Number: (310) 253 5889 Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No [] Public Hearing: [] Action Item: [x] Attachments: [x] Public Notification: Culver City Chamber of Commerce (7/19/06); Downtown Business Association (7/19/06); Master Notification List (7/19/06) Department Approval: Crystal Alexander (7/13/06) City Manager Approval: Jerry B. Fulwood (07/19/06) City Controller Approval: Marlee Chang (07/19/06)City of Culver City, California City Council Agenda Item Report In subsequent renewal years, while the time at the counter is decreased, the customer contact is increased in the form of auditing and correcting entries and calculation errors on renewals. Additionally, there is an average of 20 to 25 special permits processed per month for business tax customers. The City has been assessing a $45 application/renewal processing fee to cover the cost for the City Treasurer’s Office (CTO) administration of the business tax program for the last sixteen (16) years. In addition, as is often the case for what is described as “current planning” activities, there has been no fee assessed for work performed by the Planning Division of the Community Development Department. Planning’s work is vital to ensure compliance with the Zoning Code and General Plan, which further lends toward a more harmonious relationship between the commercial and residential areas of the community. This is especially the case for home occupation businesses, for which certain kinds of activities are restricted. Establishing a new business planning review fee of $20 in conjunction with the business tax certificate application process, and increasing the business tax certificate application/renewal processing fee to $60, recognizes the significant passage of time since the City last adjusted these business related fees. Currently, Culver City’s business tax certificate fees are only covering 44.4% of the costs incurred by the City Treasurer’s Office and Planning Division to administer the business tax program and conduct a planning review of new in-City businesses. DISCUSSION: Current Business Tax Certificate Program The City does not issue business licenses. Our business tax ordinance exists solely to raise revenues for general municipal purposes, and does not regulate businesses in any way. Accordingly, the business tax certificate that we issue is simply evidence that the business tax has been paid. It is not assurance that the business is in compliance with any City regulatory requirements (or those of any other agency). All new and renewed business tax certificate applications must be processed and administered by the City Treasurer’s Office. Additionally, all new applications must be reviewed for consistency with zoning and building requirements by Planning staff. In-City businesses with a change of location shown on their renewal applications would also be subject to this process. Businesses with offices principally located outside of the City are not reviewed by Planning staff. Current Business Tax Certificate Application and Renewal CostsCity of Culver City, California City Council Agenda Item Report There are regulatory aspects in how the Treasurer’s Office processes business tax certificate applications and renewals. For example, Planning staff reviews all new business tax certificate applications, and location changes for existing certificate holders, for compliance with zoning and building regulations. In effect, there is already a regulatory aspect of the City’s business tax program, but the City is not recovering the costs for this review. The various activities of the City Treasurer’s Office in processing a first time business tax certificate application, or its renewal in subsequent years, involves a number of activities, in addition to the one-on-one interaction with the customer. Attachment 3 lists the major activities involved in processing a business tax certificate application and renewal, and depending upon the level of staff involved, the associated cost to arrive at the direct staff cost. Added to these figures was the proportionate share of the indirect administrative overhead costs. These costs were based on the projected budget figures for 2006/07. Based on these projected cost figures, the cost of processing a business tax certificate renewal is approximately $70. Analysis utilizing the Consumer Price Index (CPI) applied over the period June 1989 and June 2006 yields a projected cost of $73.62, which is listed in Attachment 4. If a business is located in Culver City, the Planning Division must approve the business tax certificate application. The Culver City Zoning Code establishes regulations concerning where and under what conditions a business may operate in the City. The Planning Division verifies if the business meets the zoning requirements, in addition to whether other types of review, like an administrative use permit or a conditional use permit, are required. Additionally, when a business tax certificate is evaluated, the planner must check that the parking requirements that apply to the type of business and location are being met. In some cases, researching planning files and business tax certificate records may be necessary to determine if prior business activity at that specific location constitutes a legal non- conforming use. The Planning Division also assures that businesses that are operated in residential units are limited to low intensity office uses that are clearly secondary to the use of the dwelling, and compatible with surrounding residential uses. Thus, it is the policy of Planning staff to inform the applicant of the home occupation regulations and to make sure the applicant reads and acknowledges receipt of such regulations. Attachment 5 details the major activities for Planning staff in processing a business tax certificate application. Based on these projected cost figures, the cost of processing a business tax certificate application or renewal is approximately $31.59, as shown in Attachment 5. Consistency with User Fee Cost RecoveryCity of Culver City, California City Council Agenda Item Report Policy. Implementing a new business planning review fee will help recover the administrative costs the City is already incurring. In short, it will not create any new requirements, but simply recognize the efforts and related resources already in place. Practices in Other Cities. Other cities issue business receipts/licenses and set minimum fees as needed to recover their total cost of issuance. Business License Application and Renewal Fees in neighboring cities are shown in Attachment 6. Customer Service Impact. Staff believes that this modest fee will have a nominal impact on the business community. As noted above, the cost for obtaining a business tax certificate has remained unchanged since 1990. For businesses renewing their business tax certificate, which have not changed their in-City location, the City Treasurer’s Office processing fee will be adjusted to $60, the same rate to be paid by new businesses. FISCAL ANALYSIS: Proposed New Business Planning Review Fee Based on the proposed rate structure, implementing a new business planning review fee, plus an inflationary adjustment to the business tax certificate application/renewal fee will generate $201,000 to $209,000 on an annual basis. Estimated New Business Planning Review Fee Revenues Projected Figures Annual Activity Current Business License Fees Proposed Business Lic. Appln & Renewal Fee Proposed New Business Planning Review Fee Revenues at CURRENT rates Additional Revenue due to fee change & intro of Planning Review Fee New Applications - Located in City* 900-1,000 $45 $60 $20.00 $40,500-$45,000 $31,500-$35,000 - Located out of City 1,400-1,500 $45 $60 $63,000-$67,500 $21,000-$22,500 Annual Renewals 9,900-10,100 $45 $60 $445,500-$454,500 $148,500-$151,500 Total $549,000-$567,000 $201,000-$209,000 *Excludes commercial property rental, gardeners, handbill distributors and vending machine operators business tax receipts, which are not sent to Planning staff for review.City of Culver City, California City Council Agenda Item Report ATTACHMENTS: 1. Proposed Ordinance 2. Proposed Resolution 3. Cost Analysis for the Business Tax Division at the Application and Renewal Stages; 4. Effect of Adjusting the $45 Fee by the Consumer Price Index; 5. Cost Analysis for the Community Development /Planning Departments’ Business Planning Review Fee; 6. Business License Application and Renewal Fees for Neighboring Cities. MOTION: That the City Council: 1. Introduce for first reading the Ordinance amending Section 11.01.220 of the Culver City Municipal Code relating to the business tax certificate application/renewal processing fee; and 2. Adopt the Resolution increasing the business tax certificate application/renewal processing fees and establishing a business planning review fee. MEETING DATE: 07/24/06 AGENDA ITEM: 1) Introduction of Ordinance Amending Section 11.01.220 of the Culver City Municipal Code relating to Business Tax Certificate Application/Renewal Processing Fee; and 2) Adoption of Resolution to Increase the Business Tax Application/Renewal Processing Fee and to Establish a Business Planning Review Fee. ATTACHMENTS Pages 1. Proposed Ordinance 2. Proposed Resolution 3. Cost Analysis for the Business Tax Division at the Application and Renewal Stages 4. Effect of Adjusting the $45 Fee by the Consumer Price Index 5. Cost Analysis for the Community Development/Planning Departments' Business Planning Review Fee 6. Business License Application and Renewal Fees for Neighboring Cities|1010|1 - 6 - 10 11 12 13 14I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTACNNI_ENT #1 ORDINANCE NO. 2006- AN ORDINANCE OF THE CITY OF CULVER CITY, CALIFORNIA, AMENDING SECTION 11.01.220 OF THE CULVER CITY MUNICIPAL CODE RELATING TO THE BUSINESS TAX CERTIFICATE APPLICATION RENEWAL PROCESSING FEES. WHEREAS, every year approximately 2,400 new businesses apply for business tax certificates from the Treasury Division of the City Treasurer's Office. All new and renewed business tax certificate applications must be processed and administered by the City Treasurer's Office; and WHEREAS, there is a regulatory aspect to the processing of a business tax certificate application/renewal, which consists of Planning staff review of all new business tax certificate applications for compliance with zoning and building regulations. In-City businesses with a change of location at the time of renewal are also subject to this process; and WHEREAS, Section 11.01.220 of the Culver City Municipal Code sets forth a specific dollar amount for the business tax certificate application/renewal processing fee; and WHEREAS, the application/renewal processing fee to cover the costs of the services performed by the City Treasurer's Department has not been adjusted in 16 years, and there has never been a fee assessed for services performed by the Planning Division; and WHEREAS, in the interest of saving City staff time and costs involved in amending, by ordinance, the City's Municipal Code on every occasion where it is 30determined that there should be an increase in fees; and WHEREAS, there is outdated language contained in §§ 11.01.220 (3) and (4) that is no longer applicable today. NOW, THEREFORE, the City Council of the City of Culver City, California, DOES HEREBY ORDAIN as follows: SECTION 1. Section 11.01.220 of the Culver City Municipal Code is hereby amended to read as follows: § 11.01.220 COMPUTATION OF TAXES AND FEES. A business whose tax is based on gross receipts shall compute and pay its business tax and fees as follows: A. Application. At the time an application is made for a business tax certificate, the applicant shall pay an application fee of Forty Five Dollar* ($15.00) in an amount set by resolution of the City Council. B. Renewal. At the commencement of the first renewal period, or at the termination of business in Culver City, should such termination be prior to the commencement of the first renewal period, the tax certificate holder shall file with the City Treasurer, on a form provided by the Treasurer's Office, a verified statement of gross receipts or a verified statement of the cost of operations should the taxable gross receipts be less than the cost of operations, for the initial period and based on the statement shall pay the tax due for the initial period. At the same time, for the first renewal period, the tax certificate holder shall pay a renewal fee of Forty Five DoHare ($45.00) in an amount set by resolution of the City Council and the tax based on the verified -2- I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2---- 30I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 statement of gross receipts or the verified statement of the cost of operations should the taxable gross receipts be less than the cost of operations projected to estimate gross receipts for the renewal period. 1. For each succeeding renewal period, the tax certificate holder shall pay a renewal fee - Re in an amount set by resolution of the City Council and shall file a verified statement of gross receipts, or a verified statement of the cost of operations should the taxable gross receipts be less than the cost of operations, for the preceding twelve (12) month period and shall pay a business tax computed on such statement at the rate specified for the applicable business category. 2. At the time an application is made for a business tax certificate, or at the time of a renewal of a business tax certificate, where the tax is determined by a flat rate, the applicant or tax certificate holder shall pay an application fee or renewal fee of Forty Five Dollars ($15.00) in an amount set by resolution of the City Council in addition to the flat rate tax. 3. Thc business tax period bcginning July 1, 1090 shall end December 31, 1990. Businctmes applying for a business tax certificate during the period July 1, 1990 through December 31, 1990 shall, at the time an -ee e provided by thc Treasurer's Office, a verified statement of gFoss rcccipts or a -e -••-• e e ee- -3- a6 : 2.! e e- e-- C ee 4. 1'. ee- e "' e e ee- e -e. - - e e -••-• receipts bc less than the cost of operations. /1. a. Businesses filing for a renewal of their business tax December 31, 1990, shall compute their business tax as follows: (1) For those businerA-,es whose start data in Culver City is prior to January 1, 1989; the business tax shall be b „cd on one half ( 1 /2) of the taxable gross receipts produced during incurred during calendar y ar 1989 should the taxable gross receipts be lew, than the cost of operations. (2) For those businesses whose start date in Culver City is prior to July 1, 1989 and after January 1, 1989; the business tax shall be based on one half (|1010|/2) of-the-taxable-WASS receipts produced during the period from their start date in Culver City through December 31, 1089 or on one half ( I A) of - e • • • - - • • e - • ! e e • -4-e e e ee-: I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (3) For those businesses whose start date in Culver 31, 1989 or on the cost of operations incurred from their start 0.0 r., • * t • taxable gross receipts be less than the cost-of operations. December 31, 1°90 shall pay no renewal fee. C. Business Planning Review Fee. At the time an application is made for a business tax certificate, or upon renewal if the business has changed location, the applicant shall pay a business planning review fee in an amount set by resolution of the City Council. SECTION 2. Pursuant to Section 619 of the City Charter, this Ordinance shall take effect thirty (30) days after the date of its adoption. Pursuant to Sections 616 and 621 of the City Charter, prior to the expiration of fifteen (15) days after the adoption, the City Clerk shall cause this Ordinance, or a summary thereof, to be published in the Culver City News and shall post this Ordinance or a summary thereof in at least three places within the City. SECTION 3. The City Council hereby declares that, if any provision, section, subsection, paragraph, sentence, phrase or word of this ordinance is rendered or declared invalid or unconstitutional by any final action in a court of competent jurisdiction or by -5- 30reason of any preemptive legislation, then the City Council would have independently adopted the remaining provisions, sections, subsections, paragraphs, sentences, phrases or words of this ordinance and as such they shall remain in full force and effect. APPROVED AND ADOPTED this day of , 2006. I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 i 28 CIO 30 GARY SILBIGER, Mayor City of Culver City, California ATTEST: APPROVED AS TO FORM: CHRISTOPHER ARMENTA, City Clerk CAROL A. SCHWAB, City Attorney -6-ATTACHMENT #2 RESOLUTION NO. 2006-R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, INCREASING THE BUSINESS TAX CERTIFICATE APPLICATION AND RENEWAL PROCESSING FEE AND ESTABLISHING A BUSINESS PLANNING REVIEW FEE. WHEREAS, every year approximately 2,400 new businesses apply for business tax certificates from the Treasury Division of the City Treasurer's Office. All new and renewed business tax certificate applications must be processed and administered by the City Treasurer's Office; and WHEREAS, there is a regulatory aspect to the processing of a business tax certificate application/renewal, which consists of Planning staff review of all new business tax certificate applications for compliance with zoning and building regulations. In-City businesse with a change of location at the time of renewal are also subject to this process; and WHEREAS, pursuant to Section 11.01.220 of the Culver City Municipal Code, the City Council may, by resolution, establish fees for the processing of business tax certificat applications/renewals; and WHEREAS, the application/renewal processing fee to cover the costs of the services performed by the City Treasurer's Department has not been adjusted in 16 years; and there has never been a fee assessed for services performed by the Planning Division; an WHEREAS, the current fee of $45.00 for the processing of business tax certificate applications/renewals does not cover the City's costs; and / / /|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IiWHEREAS, it is the intent that the costs associated with the administration and regulation of business tax certificate applications/renewals be recouped from the applicants; and WHEREAS, these costs are currently calculated to be Sixty Dollars ($60.00) for the services performed by the City Treasurer's Department in the processing of business tax certificate applications/renewals; and Twenty Dollars ($20.00) for the services performed by the Planning staff for all new business tax certificate applications and all renewals where the business has changed its location; and WHEREAS, on July 24, 2006, at a duly noticed public meeting, the City Council considered an increase of the business tax certificate application/renewal fee, and the establishment of a business planning review fee, for the costs involved in processing busines tax certificate applications/renewals; and WHEREAS, after giving the public an opportunity to be heard and considering al information before it, the City Council approved said fees; and WHEREAS, the fees established herein are based upon the reasonable cost of providing the services for which the fees are imposed. NOW, THEREFORE, the City Council of the City of Culver City, California, DOES HEREBY RESOLVE as follows: 1. The fees established in Exhibit "A," attached hereto, are hereby adopted.|1010|I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 282. This Resolution shall take effect concurrently with Ordinance No. 2006- APPROVED and ADOPTED this 24 th day of July, 2006. GARY SILBIGER, MAYOR City of Culver City, California ATTEST: APPROVED AS TO FORM: CHRISTOPHER ARMENTA, CAROL A. SCHWAB, City Clerk City Attorney I|1010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28|1010|9EXHIBIT "A" The following fees are established for and applicable to the processing of business tax certificate applications and renewals as described in Section 11.01.220 of the Culver City Municipal Code: Business Tax Certificate Application Processing Fee: $60.00 Business Tax Certificate Renewal Processing Fee: $60.00 Business Planning Review Fee: $20.00|10101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (-)Time taken in minutes low I high Average Average Personnel Cost per $ per hour Personnel Category ATTACHMENT #3 COST ANALYSIS FOR THE BUSINESS TAX DIVISION AT THE APPLICATION & RENEWAL STAGES COST ANALYSIS: Senior Account Clerk $38.70 34 46 40.00 $25.80 Acccounting Technician $40.10 8 11 9.50 $6.35 Account Clerk $32.43 4 6 5.00 $2.70 46 63 54.50 $34.85 Indirect Treasury Division costs ( note #1) a 39.83% $13.87 Sub-total: Treasury Division costs $48.72 Indirect Treasury Administration costs (note #2) 43.41% $21.14 Total Transaction cost $69.86 ACTIVITY ANALYSIS: 'Activity 'Level I minutes I minutes Counter Time Senior Account Clerk 15 20 Receipt Processing Senior Account Clerk 8 12 Pull Back-up Docs Senior Account Clerk 1 2 Enter into HdL Senior Account Clerk 10 12 sub-total 34 46 Review Documents Acccounting Technician 2 3 Post in HdL Acccounting Technician 5 7 Review Certificate Acccounting Technician 1 1 sub-total 8 11 File Account Clerk 1 2 Mailing Account Clerk 3 4 sub-total 4 6 Total Time Taken 46 63 Note # 1: The Indirect Treasury Division cost percentage was arrived at as the ratio of the "Maintenance & Operations" cost to the "Personnel Services" cost, using the CAO's recommended figures for the Budget Year 2005/06. The "Maintenance & Operations" cost = $261,514 The "Personnel Cost" = $656,610 Indirect Treasury Division Cost % = $261,514,000 / $656,610 = 39.83% Indirect Treasury Division Cost in $ = 39.90% of $33.64 = $13.42 Note # 2: The Treasury Department's proportionate share of the combined costs of the 3 operating divisions was taken as the basis for its share of the Treasury Adminstration expenses, and referred to as the Indirect Treasury Administration costs. Treasury Division $918,524.00 43.41% Accounting $512,623.00 24.22% Accounting Operations $685,021.00 32.37% total $2,116,168.00 100.00%Consumer Price Index (CPI) The $45 Fee adjusted for CPI Year Ended ATTACHMENT #4 Effect of Adjusting the $45 Fee by the Consumer Price Index If the original Business Tax Application / Renewal Fee had been linked to the Consumer Price Index, then the $45 would have become $73.62 as of 6/30/2006. 6/30/1989 100.00 $45.00 6/30/1990 104.63 $47.08 6/30/1991 108.86 $48.99 6/30/1992 113.17 $50.93 6/30/1993 115.56 $52.00 6/30/1994 116.60 $52.47 6/30/1995 119.47 $53.76 6/30/1996 120.91 $54.41 6/30/1997 122.75 $55.24 6/30/1998 124.58 $56.06 6/30/1999 126.82 $57.07 6/30/2000 131.13 $59.01 6/30/2001 137.19 $61.74 6/30/2002 139.43 $62.74 6/30/2003 143.34 $64.50 6/30/2004 149.56 $67.30 6/30/2005 154.59 $69.57 6/30/2006* 163.61 $73.62 * since June 2006 figures are not yet available, the actual figures for May 2006 were taken Source: U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index - Urban Wage Earners & Clerical Workers for Los Angeles, Riverside, and Orange County, CAATTACHMENT #5 COST ANALYSIS FOR THE COMMUNITY DEVELOPMENT / PLANNING DEPARTMENTS' BUSINESS PLANNING REVIEW FEE Time taken in minutes Average Personnel Cost per Personnel Category $ per hour low high Average transaction Assistant Planner $41.81 12 67 39.50 $27.53 Total Personnel cost $27.53 Indirect Administrative Overhead Costs: Planning Division costs ( note #1) @ 14.75% $4.06 Total Transaction cost $31.59 Note # 1: Indirect Administrative Overhead Costs: Planning Division This percentage figure was arrived at as the ratio of the "Maintenance & Operations" cost to the "Personnel Services" cost, using the CAO's recommended figures for the Budget Year 2006/07. The "Maintenance & Operations" cost = $141,221 The "Personnel Cost" = $957,658 Indirect Planning Division Cost % = $141,221 / $957,658 =14.75% Indirect Planning Division Cost in $ = 14.75% of $27.53 = $4.06ATTACHMENT #6 BUSINESS LICENSE APPLICATION AND RENEWAL FEES FOR NEIGHBORING CITIES MINIMUM FEE FOR CITY NEW APPLICATION RENEWAL PROCESSING FEE PLANNING FEE RETAIL BUSINESSES CULVER CITY $45.00 $45.00 $45.00 PLUS $1 PER $1,000 GROSS RECEIPTS (GR) LOS ANGELES 0.00 1 0 1 $110.86 FOR UP TO $75,000 (GR) AFTER WHICH $1.48 PER $1,000 (GR) WEST HOLLYWOOD $25.00 $25.00 $24 PLUS $0.48 PER $1,000 (GR) SANTA MONICA $75.00 $75.00 10.6 2 100.27 2 $185.87 PLUS $1.25 PER $1,000 (GR). BEVERLY HILLS 0.00 3 0.00 3 $75.00 PLUS 1.25 PER $1,000 ( GR) OVER $60,000 EL SEGUNDO 88.00 4 88.00 4 $88.00 BASE FEE PLUS $109 PER EVERY EMPLOYEE OVER TEN, PLUS $0.21 PER SQ FOOT ENCLOSED SPACE OVER 5,000 SQ.FEET. INGLEWOOD $0.00 $0.00 $22 PLUS $1.10 PER $1,000 (GR) OR FRACTION THEREOF ABOVE $20,000 TORRANCE 0.00 5 0.00 5 $21.00 $176 PLUS $52 PER PERSON EMPLOYEED AT THAT LOCATION Footnotes: 1. Per discussions in June 2006 with City of Los Angeles staff, they are thinking of introducing fees for the application and renewal of Business Tax Certificates. 2. Fees in Santa Monica are increased by CPI on July 1 each year. 3. Beverly Hills has no Application or Renewal fee, but imposes a Minimum Tax for all activities ranging from $75.00 for Retail, Wholesale and Manufacturing, to $1,152.81 for Professional Services. 4. El Segundo has a Base Tax, plus additional amounts when number of employees and floor space exceeds 10 and 5,000 respectively. 5.Torrance charges flat rate taxes determined by activity.