2004-076 - Reimburse the City for a Newly Imposed State Mandated Charge on Enterprise Zone Tax Hiring Vouchers

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8 8 8 RESOLUTION NO. 2004-076 bk:9/14/04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING A FEE TO REIMBURSE THE CITY FOR A NEWLY IMPOSED STATE MANDATED CHARGE ON ENTERPRISE ZONE TAX HIRING VOUCHERS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby, finds, determines and declares as follows: A. In June of 1993, the City of Santa Ana was designated a State Enterprise Zone. Over 7,100 acres of the City lie within the Enterprise Zone. B. As part of the Enterprise Zone program, businesses which hire eligible employees may qualify for state income tax credits of tens of thousands of dollars per employee hired. To obtain such a credit, the business must be issued a tax hiring voucher. C. Over the last four years, the City has approved almost 10,000 applications for hiring tax credit vouchers by City businesses located in the City's Enterprise Zone. D. In large part because of its active hiring tax voucher program, the City of Santa Ana has been recognized as the top Enterprise Zone performer in the state E. As of October 1, 2004, the City will be required by a newly adopted State law to pay to the State of California a $10.00 charge for each voucher application submitted to the City for processing. It is appropriate that this charge be paid by the applicant seeking a significant income tax credit rather than by the City's taxpayers in general. Section 2: A $10.00 per application fee is hereby established for each person applying for a Enterprise Zone Hiring Tax Credit. This fee will be collected beginning October 1, 2004. Section 3. That without further action of the City Council this fee shall be incorporated into the City's Miscellaneous Fee Schedule. ADOPTED this 20th day of September, 2004. Resolution No. 2004-076 Page 1 of 2