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Discussion of Penalty Amounts for Late Business Tax Filings and for Late Commercial Refuse Bill Payments
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Meeting Date: October 11, 2017
Contact Person/Dept: Jeff Muir/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Public Notification: (E-Mail) Meetings and Agendas - Finance Advisory Committee (10/06/2017)
Department Approval: Jeff Muir, Chief Financial Officer (10/05/2017)
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RECOMMENDATION
Staff recommends that the Finance Advisory Committee (FAC) discuss the existing late charges for delinquent business tax filings and for late commercial refuse bill payments and provide recommendations to staff.
BACKGROUND/DISCUSSION
The City of Culver City relies upon the payment of taxes and charges for services to fund its operations. Like any other city or business, it is important for the City to receive payments due to it in a timely manner. Late fees are a common strategy, used by both governments and businesses, to encourage timely payments. Aggressive late fees can obviously serve as even more of a deterrent against late payments. In two areas, the City's late fees seem a little out of step with surrounding (or further) cities. Staff would like to discuss these with the FAC.
Business Tax
Section 11.01.205 of the Culver City Municipal Code (CCMC) states:
"Penalty for nonpayment of a business tax shall be established by resolution of the City Council. This penalty provision shall not be construed to preclude or limit the enforcement of the penal provision of this Chapter."
As part of the proposed Cannabis Tax Ordinance, staff will also be proposing to establish late penalties for tax filings by City Council resolution, and intends that there would be consistency with the business tax late penalties.
In October 2000, t...
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