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Business License Tax Penalty Abatement Ordinance <br />Amending SAMC Chapter 21 <br />January 22, 2013 <br />procedure based on the current year's tax rates to allow calculating taxes owing for several years, <br />each year normally having a slightly different tax rate, simplifies the process and lowers costs for <br />participating businesses and promotes ease of administration for the city. <br />In addition, given that the last comprehensive revision to the code was conducted in 1987, the <br />proposed ordinance includes some definitional updates as well as reporting and administrative <br />items. Among these are the options for applicants who are small businesses to post a reduced <br />gross receipts tax deposit, and for home-based businesses to choose a simplified flat rate <br />assessment of ($165) in lieu of reporting gross receipts. For businesses engaged in administrative <br />or management related activities, a simplified alternate method for reporting gross receipts taxes <br />has been added. The limited liability of holding companies and pass-through entities, who owe the <br />minimum basic rate tax amount ($124) only, has also been clarified. The administrative authority <br />to settle claims remains, with the added ability to look at procedural requirements on both a case- <br />by-case and class-by-class basis. To better comply with Propositions 26 and 218, provisions have <br />been added to require adoption of administrative cost recovery fees by council resolution. <br />FISCAL IMPACT <br />There is an estimated $250,000 in anticipated increased business license tax revenue (fund <br />account number 01102002 50045) associated with this action beginning in FY 2013-14. <br />. 3?- T, I ')\?, A-?, I /In <br />Francisco Gutierrez 'Vi <br />Executive Director <br />Finance & Management Services Agency <br />Attachments: Ordinance <br />7501-2