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11A - ORDINANCE - BUSINESS LICENSE TAX PENALTY ABATEMENT
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11A - ORDINANCE - BUSINESS LICENSE TAX PENALTY ABATEMENT
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Last modified
2/4/2013 9:41:54 AM
Creation date
1/31/2013 4:49:47 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
11A
Date
2/4/2013
Destruction Year
2018
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enforcement, collection and enhanced administration of the City's business license tax; <br />and, <br />E. In order to promote immediate and future ease of administration by the City, as <br />well as encourage participation and compliance by qualifying businesses, it is <br />appropriate for the City to amend Chapter 21 to add a voluntary elective alternative flat <br />rate tax assessment for home-based businesses doing business in Santa Ana <br />equivalent to the average gross receipts tax assessment paid by licensed home-based <br />businesses for the most recently tax assessment period. For qualifying unlicensed <br />home-based businesses that are in arrears for prior years' taxes it is appropriate that <br />this alternative tax assessment be adopted retro-active to January 1, 2010. For all other <br />qualifying business who are in arrears for prior years' taxes it is appropriate that <br />penalties and interest be abated to an amount equivalent to the amount of the prior years' <br />taxes owing, as computed or determined based upon the business license tax rates and <br />charges in effect for the most current tax year; and, <br />F. In the course of adopting a Business License Tax Penalty Abatement <br />Procedure and modifying the City's Business License Tax Code, it is not the intent of <br />the city council to either increase the scope of the City's business license tax, or impose <br />a higher business license tax rate, or shift any category of business to a higher tax <br />assessment classification. Any changes in definitional terms are intended to clarify the <br />administration of the City's business license tax with regard to changes in state and/or <br />federal law and modern business practices. <br />SECTION 2: ESTABLISHMENT OF BUSINESS LICENSE TAX PENALTY <br />ABATEMENT PROCEDURE. An ordinance is hereby adopted establishing a Business <br />License Tax Penalty Abatement Procedure. <br />(a) SHORT TITLE. Section 2 of this ordinance shall be known as the "Business <br />License Tax Penalty Abatement Ordinance." <br />(b) DEFINITIONS. Except where the context otherwise requires, the terms used in <br />this ordinance shall have the meaning given to them in Chapter 21 of the Santa <br />Ana Municipal Code. <br />(c) ABATEMENT PROGRAM. A business license tax penalty abatement program <br />is hereby established for persons required to obtain a business license and pay <br />a business license tax under Chapter 21 of the Santa Ana Municipal Code. <br />SECTION 3: That section 21-3 [Definitions-Specific. definition of "Gross Receipts", <br />definition of "Person", and definition of "Transact and Carry-on'] of Chapter 21 of the <br />Santa Ana Municipal Code are hereby amended and shall read as follows [new <br />language in bold, deleted language in °+ru]: <br />Page 2 <br />11 A-4
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