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D. In order to assure the effective identification of unlicensed businesses and to <br />enhance the effective collection of the business license taxes, it is appropriate for the City <br />to amend Chapter 21, "The Business License Tax Code", to modify and to add <br />appropriate definitional and administrative provisions for the effective identification, <br />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 appropriate <br />for the City to amend Chapter 21 to add a voluntary elective alternative flat rate tax <br />assessment for home-based businesses doing business in Santa Ana equivalent to the <br />average gross receipts tax assessment paid by licensed home-based businesses for the <br />most recently tax assessment period. For qualifying unlicensed home-based businesses <br />that are in arrears for prior years' taxes it is appropriate that this alternative tax <br />assessment be adopted retro-active to January 1, 2010. For all other qualifying business <br />who are in arrears for prior years' taxes it is appropriate that penalties and interest be <br />abated to an amount equivalent to the amount of the prior years' taxes owing, as computed <br />or determined based upon the business license tax rates and charges in effect for the most <br />current tax year; and, <br />F. In the course of adopting a Business License Tax Penalty Abatement Procedure <br />and modifying the City's Business License Tax Code, it is not the intent of the city council <br />to either increase the scope of the City's business license tax, or impose a higher <br />business license tax rate, or shift any category of business to a higher tax assessment <br />classification. Any changes in definitional terms are intended to clarify the administration <br />of the City's business license tax with regard to changes in state and/or federal law and <br />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 is <br />hereby established for persons required to obtain a business license and pay a <br />business license tax under Chapter 21 of the Santa Ana Municipal Code. <br />Ordinance No. NS-2841 <br />Page 2 of 29