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File #: 24-218    Version: 1 Name:
Type: Minute Order Status: Action Item
File created: 8/24/2023 In control: City Council Meeting Agenda
On agenda: 9/18/2023 Final action:
Title: CC: ACTION ITEM - (1) Discussion of Whether to Review the Penalty Rate Structure for the Nonpayment of Business Tax as per Culver City Municipal Code Section 11.01.205; (2) (If Desired) Creation of an Ad Hoc Business License Penalty Review City Council Subcommittee and the Appointment of Two Council Members thereto; and (3) Direction to the City Manager as Deemed Appropriate.
Attachments: 1. Attachment_1_ORD 2000-021 - Business Regulations pertaining to nonpayment o.._, 2. Attachment _2_Resolution 2000-R 101 - Non-Payment of Business License Penalty
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CC: ACTION ITEM - (1) Discussion of Whether to Review the Penalty Rate Structure for the Nonpayment of Business Tax as per Culver City Municipal Code Section 11.01.205; (2) (If Desired) Creation of an Ad Hoc Business License Penalty Review City Council Subcommittee and the Appointment of Two Council Members thereto; and (3) Direction to the City Manager as Deemed Appropriate.

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Meeting Date: September 18, 2023

Contact Person/Dept: Onyx Jones, Assistant City Manager
Phone Number: (310) 253-6023

Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []

Public Hearing: [] Action Item: [X] Attachments: [X]

Commission Action Required: Yes [] No [X] Date:

Public Notification: (E-Mail) Meetings and Agendas - City Council (09/13/2023)
Department Approval: John Nachbar, City Manager, (09/12/2023)
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RECOMMENDATION

Staff recommends City Council (1) discuss whether to review the penalty rate structure for the nonpayment of business tax as per Culver City Municipal Code (CCMC) Section 11.01.205; (2) (If desired) create an Ad Hoc Business License Penalty Review City Council Subcommittee and appoint two Council members thereto; and (3) provide direction to the City Manager as deemed appropriate.


BACKGROUND

The voters of Culver City passed Measure BL in the November 2022 general election to update CCMC Chapter 11.01 - General Licensing for businesses. Measure BL updated Culver City's business license tax to either a flat tax up to $1,000, or 0.13%-0.35% of gross receipts (depending on business type), 4% for oil well operations, and an additional 0.01% for gross receipts over $100,000,000. Measure BL also exempts the first $200,000 in gross receipts and updates the business classifications.
CCMC Section 11.01.205 authorizes City Council to establish penalties for non-payment of business tax through City Council resolution. City Council ado...

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