City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt the Ordinance amending Section
11.01.220 of the Culver City Municipal Code relating to Business Tax Certificate
Application/Renewal Processing Fee.
BACKGROUND/DISCUSSION:
At the City Council meeting of July 24, 2006, the Council introduced the Ordinance
by a unanimous vote (5-0).
The Ordinance is brought back tonight for adoption.
FISCAL ANALYSIS:
None.
ATTACHMENTS:
1. Ordinance.
MOTIONS:
That the City Council:
Adopt the Ordinance amending Section 11.01.220 of the Culver City Municipal Code
relating to Business Tax Certificate Application/Renewal Processing Fee.
Meeting Date: 08/14/06 Item Number: C-7
AGENDA ITEM: Adoption of Ordinance Amending Section 11.01.220 of the Culver
City Municipal Code relating to Business Tax Certificate Application/Renewal
Processing 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: [] Attachments: [X]
Public Notification: Culver City Chamber of Commerce (8/09/06); Downtown Business
Association (8/09/06); Master Notification List (8/09/06)
Department Approval: Crystal Alexander
(08/03/06)
City Manager Approval:
Jerry B. Fulwood (08/09/2006)
City Controller Approval:
Marlee Chang (08/09/2006)
MEETING DATE: August 14, 2006
AGENDA ITEM: Adoption of Ordinance Amending Section 11.01.220 of the
Culver City Municipal Code relating to Business Tax Certificate
Application/Renewal Processing Fee.
ATTACHMENTS
Pacies
1. Ordinance
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ATTACFMENT #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 isdetermined 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 ef-FoFty-Five-Dellara
($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 Treasurers 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 FoFt3 i Fivo Dollarc ($15:90) in an
amount set by resolution of the City Council and the tax based on the verified
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28statement 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
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 Fivo Dollarc ($45.00) in an amount set
by resolution of the City Council in addition to the flat rate tax.
3. The bucinocs bx poriod beginning July 1, 1990 shall end
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receipts bo lees than the cost of operations.
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(1) For those businesses whose start date in Culver
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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
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(d110,
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reason 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.
GARY SILBIGER, Mayor
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
CHRISTOPHER ARMENTA, City Clerk CAROL A. SCHWAB, City Attorney
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