HomeMy WebLinkAbout2022-056 - Restructure Non-Cannabis Bussiness License Tax RatesRESOLUTION NO. 2022-056
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA CALLING FOR THE PLACEMENT ON THE
BALLOT OF A MEASURE FOR THE NOVEMBER 8, 2022
GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION
TO THE QUALIFIED VOTERS OF AN ORDINANCE TO
RESTRUCTURE NON -CANNABIS BUSINESS LICENSE
TAX RATES AND PROVIDING FOR THE FILING OF
ARGUMENT AND REBUTTAL STATEMENTS
WHEREAS, as a charter city, and subject to voter approval, the City of Santa Ana
is authorized to levy business license taxes to raise revenue for municipal purposes,
pursuant to Section 5 of Article XI of the California Constitution and Section 200 of the
City Charter; and
WHEREAS, the City's business license tax rate structure appears in Chapter 21
of the Santa Ana Municipal Code; and
WHEREAS, the City wishes to restructure non -cannabis business license tax rates
within the City of Santa Ana to improve tax equity among all business sizes, reflect current
best practices, recognize the impact of home -based businesses and the new "gig"
economy, and to provide a flexible tax holiday period for unlicensed, past due, or under -
assessed businesses, with the intent to have a revenue -neutral fiscal impact to the City;
and
WHEREAS, all taxes imposed by local government are deemed to be either
general taxes or special taxes, pursuant to Section 2(a) of Article XIII C of the California
Constitution; and
WHEREAS, business license taxes are a type of general taxes, which are defined
as any tax imposed for general governmental purposes; and
WHEREAS, Section 2(b) of Article XIII C of the California Constitution provides
that a local agency cannot impose, extend, or increase any general tax unless and until
that tax is submitted to the electorate and approved by a majority vote at an election that
is consolidated with a regularly scheduled general election for members of the governing
body of the local government, except in cases of emergency declared by a unanimous
vote of the governing body; and
WHEREAS, the City Council has called and given notice of a general municipal
election to be held in the City of Santa Ana on November 8, 2022 to elect certain municipal
officers and requested that the Orange County Board of Supervisors consolidate the
City's general municipal election with the statewide general election; and
Resolution No. 2022-056
Page 1 of 22
WHEREAS, pursuant to California Elections Code Section 9222, the City Council
has authority to submit to voters a proposition for the repeal, amendment, or enactment
of any ordinance, to be voted upon at any succeeding regular or special city election, and
if the proposition submitted receives a majority of the votes cast on it at the election, the
ordinance shall be repealed, amended, or enacted accordingly; and
WHEREAS, the City has determined to submit a proposed ordinance to voters at
the November 8, 2022 general municipal election to restructure non -cannabis business
license tax rates.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. The above recitals are true and incorporated herein by reference.
Section 2. The following Ordinance shall be submitted to the voters for
enactment at the City of Santa Ana's general municipal election to be held on November
8, 2022, with identification as determined in accordance with the California Elections
Code:
Yes
Shall Chapter 21 of the Santa Ana Municipal Code be amended to
restructure non -cannabis business license tax rates within the City of
Santa Ana to improve tax equity among all business sizes, reflect
current best practices, recognize the impact of home -based No
businesses and the new "gig" economy, and to provide a flexible tax
holiday period for unlicensed, past due, or under -assessed
businesses, with the intent to have a revenue -neutral fiscal impact to
the City?
Section 3. The text of the Ordinance to be submitted to the voters is attached
to this Resolution as Exhibit A and incorporated herein by this reference.
Section 4. If the proposition receives a majority of the votes cast on it at the
election, the Ordinance shall be enacted accordingly.
Section 5. Pursuant to California Elections Code Section 9280, the City Council
hereby directs the Clerk of the Council to transmit a copy of the Ordinance to the City
Attorney, who shall prepare an impartial analysis of the measure, which shall not exceed
500 words in length.
Resolution No. 2022-056
Page 2 of 22
Section 6. Pursuant to California Elections Code Section 9282, the City Council,
or a member or members of the City Council authorized by that body, or an individual
voter who is eligible to vote on the measure, or bona fide association of citizens, or a
combination of voters and associations, may file a written argument for or against any city
measure, which shall not exceed 300 words in length.
Section 7. Pursuant to California Elections Code Section 9287, if more than one
argument for or more than one argument against the Ordinance is submitted to the Clerk
of the Council within the time prescribed by law, the Clerk shall select one of the
arguments in favor and one of the arguments against the Ordinance for printing and
distribution to the voters, giving preference and priority, in the order named, to the
arguments of the following:
(a) The City Council, or member or members of the City Council
authorized by that body.
(b) The individual voter, or bona fide association of citizens, or
combination of voters and associations, who are the bona fide
sponsors or proponents of the measure.
(c) Bona fide associations of citizens.
(d) Individual voters who are eligible to vote on the measure.
Section 8. In accordance with California Elections Code Section 9285, when an
argument in favor and an argument against the Ordinance have been selected to be
printed in the voter information guide, the Clerk shall send a copy of the argument in favor
of the measure to the authors of the argument against the measure and a copy of an
argument against the measure to the authors of the argument in favor of the measure.
The author or a majority of the authors may prepare and submit a rebuttal argument not
exceeding 250 words. Rebuttal arguments shall be printed in the same manner as the
direct arguments and shall immediately follow the direct argument which it seeks to rebut.
This Section shall only apply to the election on the Ordinance to be held on November 8,
2022.
Section 9. In accordance with California Elections Code Section 10002, the City
Council requests the Orange County Board of Supervisors to permit the county elections
official to render specified services to the City relating to the conduct of an election, for
which the City shall reimburse the County in full for the services performed upon
presentation of a bill to the City. The Board of Supervisors is also requested to consent
and agree to the consolidation of the City's general election with any other election
occurring on November 8, 2022, and the City hereby consents to any such consolidation.
Section 10. The services requested by the City of the county elections official, or
such other official as may be appropriate and authorized to perform, include: the
preparation, printing, and mailing of sample ballots and polling place cards; the
establishment or appointment of precincts, polling places, and elections officers; opening
and closing of polling places, and making such publications as are required by law in
Resolution No. 2022-056
Page 3 of 22
connection therewith; the furnishing of ballots, voting booths, and other necessary
supplies or materials for polling places; the canvassing of the returns of the election and
the furnishing of the results of such canvassing to the Clerk of the Council; and the
performance of such other election services as may be requested by the City.
Section 11. All persons qualified to vote at municipal elections in the City on the
day of election herein provided shall be qualified to vote on the Ordinance hereby
submitted at the general municipal election.
Section 12. In all particulars not recited in the Resolution, the election shall be
held and conducted as provided by law for holding general municipal elections in the City.
Section 13. Notice of the time and place of holding the general municipal election
is given, and the Clerk of the Council is authorized, instructed, and directed to give further
or additional notice of the election in the time, form, and manner as required by law.
Section 14. The Clerk of the Council shall receive the canvass as it pertains to
the general municipal election and shall certify the results to the City Council, as required
by law.
Section 15. Pursuant to California Elections Code Section 9295, this Resolution
and the attached Ordinance will be available for public examination for no fewer than ten
(10) calendar days prior to being submitted for printing in the sample ballot. The
examination period will end on the day that is seventy-five (75) days prior to the date set
for the election.
Section 16. If any section, subsection, sentence, clause, phrase or provision of
this Resolution or the application thereof to any person or circumstances is held invalid
or unconstitutional by any court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of any other provision or applications, and
to this end the provisions of this Resolution are declared to be severable. The City Council
hereby declares that it would have passed this Resolution and each section, subsection,
sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases or provisions thereof be declared
invalid or unconstitutional.
Section 17. This Resolution shall take effect immediately upon its adoption by a
majority of the City Council.
Section 18. The Clerk of Council is hereby directed to certify to the passage and
adoption of this Resolution and to file a certified copy of this Resolution with the Orange
County Board of Supervisors and the Registrarof Voters of Orange County at least eighty-
eight (88) days before the date of the election.
ADOPTED this 21st day of June, 2022.
Resolution No. 2022-056
Page 4 of 22
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: hl. Yv
Jo M. Funk
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
Vicente Sarmiento
Mayor
Hernandez, Lopez, Mendoza, Penaloza,
Phan, Bacerra, Sarmiento (7)
None (0)
None (0)
NOT PRESENT: Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2022 -056 to be the original resolution adopted by the City Council of the
City of Santa Ana on June 21, 2022. ,
Date: ( �/1:1+ O%Z
vC.l�
Daisy Gomez
Clerk of the Council
City of Santa Ana
Resolution No. 2022-056
Page 5 of 22
EXHIBIT A
ORDINANCE NO. INS
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING ARTICLES IV, IX, AND X OF
CHAPTER 21 OF THE SANTA ANA MUNICIPAL CODE TO
RESTRUCTURE NON -CANNABIS BUSINESS LICENSE
TAX RATES AND ADDING ARTICLE XIV TO CHAPTER 21
OF THE SANTA ANA MUNICIPAL CODE TO PROVIDE A
FLEXIBLE TAX HOLIDAY FOR UNLICENSED, PAST DUE,
OR UNDERASSESED BUSINESSES
The People of the City of Santa Ana do ordain as follows:
Section 1. As a charter city, and subject to voter approval, the City of Santa Ana
is authorized to levy business license taxes to raise revenue for municipal purposes,
pursuant to Section 5 of Article XI of the California Constitution, Section 200 of the City
Charter, and Section 2(b) of Article XIII C of the California Constitution.
Section 2. By this Ordinance submitted for voter approval, the City wishes to
restructure non -cannabis business license tax rates within the City of Santa Ana to
improve tax equity among all business sizes, reflect current best practices, recognize the
impact of home -based businesses and the new "gig" economy, and to provide a flexible
tax holiday period for unlicensed, past due, or under -assessed businesses, with the intent
to have a revenue -neutral fiscal impact to the City.
Section 3. Article IV (Exemptions) of Chapter 21 of the Santa Ana Municipal
Code (Licenses), Sections 21-48 and 21-49, is hereby amended to read as follows:
Sec. 21-48. - Business licensing —Specified exemptions.
(a) A business license shall not be required for the conducting of any
entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or
moral subjects whenever the receipts of any such activity are to be appropriated to any
church or school or to any religious or benevolent purpose within the city.
(b) A business license shall not be required for any person under eighteen (18)
years of age, who is a c_ resident of the city, and who is enrolled in an institution of
secondary education; provided, however, such person has no employee or employees
working for him or her.
Resolution No. 2022-056
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(c) A business license shall not be required for any attorney whose only
business done in the city is in the courts operated in this city, nor for any doctor whose
only business done in the city is surgery and/or consultation in a regularly established
hospital in the city; provided, however, that the maintenance of an office facility, or
establishment within the city used in connection with any attorney's appearance in anv
court within the city, or any doctor's surgery or consultation performed at any hospital
within the city shall not be hereby exempted from the city's business licensing
requirements.
(d) A business license shall not be required for any other licensed person
providing professional services not having a fixed place of business within the city and
not engaged in other than the occasional furnishing of professional services wholly
negotiated and contracted for outside the city.
(e) A business license shall not be required for any business done in the city
where the business conducted is only occasional and incidental to a regularly established
business conducted elsewhere.
(f) A business license shall not be required for any commercial traveler whose
business is limited to goods, wares, and merchandise sold or dealt in at wholesale in this
state, or for any salesman or agents representing vendors which have, do, or would
normally supply goods for resale to licensees of the city.
(q) A business license shall not be required for any individual whose business
is limited to providing in -home childcare to immediate or extended familv members The
phrase "immediate or extended family members" shall mean such individual's direct
children, children by adoption, children by marriage grandchildren (direct by adoption
or by marriage) nieces or nephews (direct by adoption or by marriage) and any foster
children or other minor under eighteen (18) years of age living as part of the same
residential household.
Sec. 21-49. - Business licensing —Specified exclusions.
Except as may be otherwise specifically provided in this Chapter, the terms hereof
shall not be deemed to apply or construed to require the payment of a license tax by any
of the following persons:
(12) Banks, including national banking associations, federal credit unions, and
financial corporations, to the extent that a city may not levy a license tax upon them under
the provisions of Article XI I, Section 27 of the State Constitution.
Resolution No. 2022-056
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LS) Insurance companies or associations engaged in the sale and servicing of
insurance and their direct agents, including bailbond agents and life agents, but not
including brokers or bailbond brokers or life and disability insurance analysts or insurance
solicitors to the extent that a city may not levy a license tax upon them under the
provisions of Article XIII, Section 28 of the State Constitution.
(34) Any governmental agency or subdivision and the employees thereof, to the
extent they are engaged in the business of such governmental agencies or subdivisions.
L6) Any state alcoholic beverage licensee engaged in the manufacture, sale,
purchase, possession, or transportation of alcoholic beverages within the state to the
extent that a city may not levy a license tax upon them under provisions of Article XX,
Section 22 of the State Constitution.
Section 4. Article IX (Miscellaneous) of Chapter 21 of the Santa Ana Municipal
Code (Licenses), Section 21-113, is hereby amended to read as follows:
Sec. 21-113. - Telephone services.
Every person engaged in the business of providing telephone services shall pay an
annual business fee according to Section 21-119(2) of this Chapter. For thepurpose G`-
this seGtiOR, "gFOSS reGempts" shall have the same meaning as in SeGtien 24 3, exGept that
only those receipts derived fFoFn providing teleph9ne ;ervipel; within the Gity shall be
n6luded, and fuFtheF e)(Gepting that only FeGeiptG FesultiRg ftem intrastate telephone
RPRO Gel; Shall h 1 J J
Section 6. Article X (Rates and Schedules) of Chapter 21 of the Santa Ana
Municipal Code, Sections 21-116 through 21-121, is hereby amended to read as follows:
ARTICLE X. - RATES AND SCHEDULES
Sec. 21-116. - Applicability of article.
The tax for any license required by any Section of this Chapter shall be set forth in
this article for the particular business involved. The tax and the duration of the license
shall be annual, quarterly, monthly, and daily as indicated in this article. The letter "A"
following the tax shall indicate an annual rate; the letter "Q" shall indicate a quarterly rate;
the letter "M" shall indicate a monthly rate; the letter "D" shall indicate a daily rate. No
letter following the tax shall indicate a variable duration as determined in connection with
other applicable provisions set forth elsewhere in the Santa Ana Municipal Code. In place
of a tax, the letter "C" shall denote a specified charge. The applicability of the charge shall
be determined by the Business License Tax Code provision establishing it. In the place
of either a tax or charge the letter "T" shall denote a specified qualifying threshold
amount The applicability of the qualifying threshold amount shall be determined by the
Business License Tax Code provision establishing it.
Resolution No. 2022-056
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Sec. 21-117. - New business license tax.
(a) A license tax for a new business shall be paid in advance or a deposit taken
in lieu thereof prior to any new business activity being undertaken.
(b) All new businesses for whom flat fees are made the basis for fixing the
amount of such license shall pay in advance an amount equal to one -quarter (Y<) of the
annual fee therefor for each quarter and fraction of a quarter remaining during the period
for which the new license is issued, except as otherwise specified hereinafter.
(c) All new businesses for whom the gross receipts of such business are made
the basis for fixing the amount of such license shall pay their annual fee based on actual
gross receipts received during the period for which the new license is issued. For any
business which is commenced subsequent to April first, the renewal fee shall be based
upon an annualization of the actual gross receipts received during the period for which
the new license is issued. In the event an applicant fails to submit a report of the actual
gross receipts received pursuant to Section 21-77, the fee shall be based on the
collector's estimate of the actual gross receipts received pursuant to Section 21-79. In
lieu of payment in advance, each applicant shall post a deposit in the amount hereinafter
indicated.
(1) All new businesses beginning business on or after April first of the current
year but before April first of the following year shall post a deposit of two hundred dollars
($200.00).
(2) All new businesses beginning business on or after March first of the current
year but before April first of current year shall post a deposit equivalent to one and one -
twelfth (1 1/12 ) of the required deposit for all new businesses beginning April first.
Where an applicant's fee is determined to be in excess of the amount of the
specified deposit, said deficiency shall be added without interest or penalty to the amount
of the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where
an applicant ceases to transact and carry on the business licensed on or before the
expiration of the period for which the new license is issued, and where the applicant's fee
is determined to be in excess of the amount of the specified deposit, the applicant shall
remain liable for said deficiency which shall be deemed due and collectible at the same
time and in the same manner as all other annual gross receipts fees due and payable
upon renewal.
Where an applicant's fee is determined to be less than the amount of the specified
deposit, said surplus shall be applied without interest as a credit against the amount of
the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where an
applicant ceases to transact and carry on the business licensed on or before the
expiration of the period for which the new license is issued, and where the applicant's fee
is determined to be less than the amount of the specified deposit, said surplus may be
Resolution No. 2022-056
Page 9 of 22
requested by applicant as a refund; provided, however, that such request must be made
in writing and must be made within one (1) year of the expiration of the initial license
period.
(d) Notwithstanding subsection (b) above, unless an adjustment or exemption
is obtained pursuant to this Chapter, the minimum tax pursuant to this section shall be
in the amount as specified in Section 21-120n.
Sec. 21-118. - Same; nonresident businesses.
(a) All new businesses located elsewhere, excluding businesses engaged in
the business of pushcart vending or in erecting, maintaining and selling of advertising
space on off -premises commercial advertising signs in the city or engaged in the
operation of coin -operated machines or devices, or engaged otherwise in vending
operations, but transacting and carrying on business in the city, and for whom flat rates
or variable flat rates are made the basis for fixing the amount of such license, shall have
the option of paying the flat rate or variable flat rate amount or basing the amount of their
tax upon their attributable gross receipts in accordance with Section 21-119(1), to which
no basic tax rate amount shall be added, but for which a two -hundred -dollar -annual
deposit shall be required to offset any tax due should applicant cease operation before
the expiration of the license term. Provided further that all such businesses who so elect
shall pay in advance an amount therefor as set forth in Section 21-117, subsection (c)
above. Said deposit to be applied as a credit or to be taken as a refund in the same
manner as is set forth in Section 21-117, subsection (c).
(b) All new businesses located elsewhere, but transacting and carrying on
business in the city for whom gross receipts are made the basis for fixing the amount of
such license, shall base their tax upon attributable gross receipts in a manner similar to
that of all other similarly classified businesses for whom gross receipts are made the basis
for fixing the amount of their license, to which no basic tax rate amount shall be added.
Provided further that all such businesses shall pay in advance an amount therefor as set
forth in Section 21-117, subsection (c) above. Said deposit to be applied as a credit, or to
be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c).
(c) Unless an adjustment of exemption is obtained pursuant to this Chapter,
the minimum tax pursuant to this section shall be teR d011aFS($10 nm Pee YeaF in the
amount as specified in Section 21-120n.
Sec. 21-119. - Gross receipts tax rates.
Gross receipts tax rates for the different classifications are as follows:
(1) Classification "A" —All businesses for which no tax is specified elsewhere in
this article, including, but not limited to: retail businesses and sales at retail, services
(including real estate brokers, real estate developers, insurance brokers, life and disability
insurance analysts, stock and bond brokers, commission agents, brokers or merchants,
Resolution No. 2022-056
Page 10 of 22
building and leaps professional services, ambulance services and recreational
services), hotels, motels, theaters, and food establishments:
For each separate place of business licensed, a basic rate of $60.00, subject to
adjustment for inflation/deflation in accordance with section 21-120 plus:
$0.W0 .65 per $1,000.00 .....
(2) Classification "B"—Manufacturing, processing, wholesale businesses and
sales at wholesale, sales of gasoline and motor fuels, aad-telephone services, and public
utility services:
For each separate place of business licensed, a basic rate of $60.00, subject to
adjustment for inflation/deflation in accordance with section 21-120 plus:
$0-.300.50 per $1,000.00 ...
(3) Classification "C"—Rental of commercial real estate:
For the first property location licensed, a basic rate of $60.00, subiect to
adjustment for inflation/deflation in accordance with section 21-120 plus:
$9-500.65 per $1,000.00 to ...
For each additional property location licensed, a basic rate of $10.00, subject to
adjustment for inflation/deflation in accordance with section 21-120 plus:
$0-500.65 per $1,000.00 to ...
Resolution No. 2022-056
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. ...... ........
(4) Classification e based.
for each separate place of business licensed, a basic rate of $440,80 15.00,
subject to adjustment for inflation/deflation in accordance with section 21-120,
plus:
.. M!"!
Sec. 21-119.1 - Maximum Tax.
The maximum annual business license tax payable for any single business license
required to be obtained pursuant to the Chapter shall not exceed $100,000.00, which
amount together with the basic rate amounts established under Section 21-119 shall be
subject to annual adjustment in accordance with Section 21-120.
Sec. 21-119.4-2. - Holding companies and pass -through entities —tie
Minimum Tax amount-G-niy.
Whenever a business entity or other person functions as a holding company or pass -
through entity and does not directly generate gross receipts within the city, but otherwise
transacts and carries on business within the city, or maintains a business presence in the
city, or is registered as a business entity with the California Secretary of State pursuant
to the California Corporations Code as the same now exists or as may be hereafter
amended from time -to -time with a designated or registered business entity address
located in the city, then the business license tax liability of such business entity or person
under Section 21-119 shall be limited to the app"Gable ba6iG Fate minimum tax amount
OPAY.
Sec. 21-119.23. - Home -based businesses —Alternate tax.
(a) Persons liable under the terms of this Chapter for gross receipts business
license taxes for business conducted from a home residence within the city and whose
-gross receipts therefrom do not exceed the annual amount specified in Section 21-
120h(1)(a) per year shall have the right to elect an alternate flat rate business license tax
as set forth in Section 21-120h of this Chapter for home based businesses and home
based occupations, in lieu of the gross receipts tax which would otherwise be applicable.
Such election shall be made in writing at the time of applicant's original application for a
Resolution No. 2022-056
Page 12 of 22
business license or may be made once annually thereafter at the time of licensee's
application for a renewal license.
(b) Home based businesses and home occupations eligible for election of an
alternate flat rate tax assessment shall be deemed to be those businesses or occupations
conducted from a home residence in the city whose business or occupational use of said
residential premises meets the requirements for a home occupation permit as set forth in
Sections 41-193.1 through 41-607 of this code as the same now exist or as they may be
hereafter amended from time -to -time.
Sec. 21-119.43. - Election of an alternate tax assessment basis —Effect.
In every case where a licensee exercises a right under this Chapter to elect an
alternate tax assessment basis the effect of said election shall be as follows:
(a) In the event an existing licensee elects to convert their annual license
assessment to an alternate tax assessment basis with an annual term beginning one (1)
or more calendar quarters before the commencement of their pre-existing tax assessment
basis and ending one (1) or more calendar quarters after the conclusion of their pre-
existing tax assessment basis, then their initial alternate tax assessment shall be subject
to a quarterly proration to account for the reduced number of calendar quarters remaining
in the term of the newly elected tax assessment.
(b) In the event an existing licensee elects to convert their annual license
assessment to an alternate tax assessment basis with an annual term beginning one (1)
or more calendar quarters after the commencement of their pre-existing tax assessment
basis and ending one (1) or more calendar quarters after the conclusion of their pre-
existing tax assessment basis, then their pre-existing tax assessment shall be
retroactively increased prorata by the number of quarters necessary to account for the
quarterly periods remaining between the conclusion of their pre-existing licensing term
and the commencement of their alternate tax assessment licensing term.
Sec. 21-120. - Flat rate and variable flat rate tax schedules: adjustment for
inflation/deflation.
(a) Flat rate and variable flat rate taxes are as set forth in Section 21-120a
through 21-120w-z of this article.
(b) Each tax, including each of its components and any specified deposit
amount required in lieu thereof, together with any other charges which are imposed
pursuant to this chapter, but excluding the individual gross receipts tax rates set forth in
section 21-119, shall be automatically adjusted on November 1 2023 and on November
1 of each year thereafter, upward or downward equivalent to the most recent change in
the annual average of the consumer price index (All Urban Consumers 1982-84 = 100)
as published by the United States Department of Labor for the Los Angeles -Long Beach
Anaheim metropolitan area as the same now exists or as shall be from time to time
amended by the United States Department of Labor.
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(c) For purposes of calculating the annual inflator/deflator factor under this
section the base year shall be that year ending with the quarter ending June 30 2022.
Rates (tax rates basic rate amounts charges specified deposit amounts qualifying
threshold amounts maximum tax cap amounts) shall first be adiusted on November 1,
2023 and thereafter, based on the annually calculated change from the base year
through to September 30 of each successive year. Said change shall be rounded off to
the nearest whole dollar as follows: If the remaining fraction of a dollar is forty-nine one -
hundredths of a dollar or less such fraction shall be omitted. If the remaining fraction of
a percent is fifty one -hundredths of a dollar or more the next highest dollar shall be
applied.
Sec. 21-120a. - Advertising services;,,;; ..pa , amusement services.
(1) ADVERTISING SERVICE:
Distributing samples or posting • •• 00250. 11 '
•• ••
•■ .
AMUSEMENT SERVICES:
(a) Amusement center (a location where mechanical devices or animals are
maintained for furnishing rides or entertainment and which may also
include vending stands):
(iii) More than 10 days9thef:
Base rate................................................................ 1250:00500.00 M
Plus, for each ride or vending stand in excess of 10 ......26 0060.00 Q
(b) Sporting exhibitions.............................................................50 00100.00 D
(c) Carnival, circuses, concerts, tent shows and open air
shows seating not more than 4,000 persons:
Firstday.....................................................................100.00200.00 D
Each additional day.....................................................50 00100.00 D
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(d) Carnival, circuses, concerts, tent shows and open air
shows seating more than 4,000 persons:
First day.......................................................................250 00500.00 D
Each additional
day.....................................................159.00300.00 D
Sec. 21-120b. - "R^ t""GIOSiRg-o t," "fore" or "w*esk" saes; bBuilding
tradesmen-, bus, limousine and taxi companies.
(1\) "BAN11RUPT""GL SING nlIT ... ,.FIRE"(lz—DR'1ter/RECK "S; 1_F=S
prior to the sale if the sale E)RduGte J on the plane of b6isineSS GGVered by the
license, and if the ,;RIF, li m itpel to mh..ndiso then on hand said nla Ge 0
h c and lasts no !GRgeF than thirty (30) days; provided Such peFsen SE)
nertifies to the GE)II^^tor ^ r to o el; sale. there shall hen additional fee
Othov,se....... ........ .................................................................................. conn nnnn
(12) BUILDING TRADESMEN, per individual............................................$35.00 A
(29)999, Ie IMO IclNE TAXI COMPANY:
a. BUS, LIMOUSINE, PeF vehiele.............................................................. nn A
I� TAXI rnnnoA my per vehicle ...................................................... 35.00 A
Sec. 21-120c. - Catering trucks, change in location amendment charge, change in
name amendment charge, christmas tree and pumpkin lots, contractors.
(1) CATERING TRUCKS, per vehicle ......................... .................. $109 00250.00 A
(2) CHANGE IN LOCATION AMENDMENT CHARGE, per license... 40.0015.00 C
(3) CHANGE IN NAME AMENDMENT CHARGE, per license........... TO 0015.00 C
(4) CHRISTMAS TREE LOTS, per lot..............................................100 008.00 DM
(5) PUMPKIN PATCH LOTS, per lot................................................100.008.00 DM
(6) CONTRACTOR —GENERAL CONTRACTOR,
prorated quarterly per contractor................................................120.00300.00 A
(7) CONTRACTOR —SPECIALTY and SUBCONTRACTOR,
prorated quarterly per contractor ................................................ 11-0.00275.00 A
Sec. 21-120d. - Dances, daRGe halls, day nurser es, duplicate license change.
(1) DANCE HALL, PUBLIC .................. ............. ......... ................. .............$2Q0.^0Q A.
Resolution No. 2022-056
Page 15 of 22
.. , .... .
SZF_
(3.1) DANCE, PUBLIC, per dance...................................................................
-$25-.0035.00 D
(52) DUPLICATE LICENSE CHARGE, per license.....................................10.00 C
Sec. 21-120f. - Firework stand.
FIREWORK STAND, per stand.-A$400:00250.00
Sec. 21-120g. - Gardeners or lawn maintenance workers.
GARDENERS OR LAWN MAINTENANCE WORKER, per individual......_ $35.00
AAl
Sec. 21-120h. - Home -based businesses, home occupations, hobby - gratuitous
license charge.
(1) HOME -BASED BUSINESS/HOME OCCUPATION .....................$4- 025.00A
a. QUALIFYING THRESHOLD AMOUNT per licensee .............$50,000.00 T
(2) HOBBY — GRATUITOUS LICENSE CHARGE, per license .....................10.00 C
Sec. 21-120i. - Independent contractors, ice cream trucks, itinerant merchants,
insurance solicitors, initial period application processing charge.
(1) INDEPENDENT CONTRACTOR, per individual..................................$35.00 A
(2) INITIAL PERIOD APPLICATION PROCESSING CHARGE
Per license application...........................................................................15.00 C
(3) ITINERANT MERCHANT.........................................................$400.00250.00 Q
(4) INSURANCE SOLICITOR, per solicitor.................................................35.00 A
(5) ICE CREAM TRUCKS..............................................................$180-:00250.00 A
Sec. 21-120j. - Janitorial and building maintenance services, junk collection.
(1) JANITORS AND BUILDING MAINTENANCE WORKERS,
Perindividual.....................................................................................$35.00 A
(2) JUNK COLLECTION, per vehicle...........................................)100 09250.00 A
Resolution No. 2022-056
Page 16 of 22
Sec. 21-120m. - Minimum gross receipts — qualifying threshold amount / gratuitous
license charge.
MINIMUM GROSS RECEPTS — QUALIFYING THRESHOLD AMOUNT /
GRATUITOUS LICENSE CHARGE
(a) QUALIFYING THRESHOLD AMOUNT per licensee $ 5 000.00 AT
(b) GRATUITOUS LICENSE CHARGE, per license..............................10.00 C
Sec. 21-120n — New Business — minimum tax.
NEW BUSINESS — MINIMUM TAX
Perlicense................................................................................................$10.00 A
Sec. 21-120o. - Off -premises commercial advertising signs.
OFF -PREMISE COMMERCIAL ADVERTISING SIGNS:
(1) Sign faces with gross dimensions equal to or less than three hundred (300)
square feet, per sign face ..................................................... $75 00190.00 A
(2) Sign faces with gross dimensions in excess of three hundred (300)
square feet, per sign face...................................................$100.00250.00 A
Sec. 21-120p. P^wT Ppeddlers, and fGfe ^'^^^' ^^ a ,pushcarts.
(1) PAWNBROKER.........................................$40000 o
(12) PEDDLER, per peddler as principal ...................... $100.0 250.00 A or 10.00 D
(23) PEDDLER, per peddler as independent contractor.............................35.00 A
(34) PRINCIPAL'S PEDDLER'S LICENSE....................................$200-00400.00 A
per each person engaged in peddling in the city.................................35.00 A
(4a) Reserved. PRQFESS10N i eF=ovirF=c,
(5&) PUSHCARTS, per pushcart .......................................... ........... :200 00500.00 A
Sec. 21-120r. - Real estate agents, renewal application processing charge, rental of
residential real estate: residential property rental; residential apartment rental; rooming
house rental; residential mobile home property rental; revalidation application
processing charge.
Resolution No. 2022-056
Page 17 of 22
(1)
REAL ESTATE AGENT, per agent....................................................$35.00
A
(2)
RENEWAL APPLICATION PROCESSING CHARGE
Per license renewal application...........................................................15.00
C
(3)
RESIDENTIAL PROPERTY RENTAL UNIT.................................250063.00
A
Plus per each property rental unit ..................................................
5 0013.00 A
(4)
RESIDENTIAL APARTMENT RENTAL ................... .....................
2fi 0063.00 A
Plus per each apartment rental unit ............. .................... ..............
.5:0013.00 A
(5)
ROOMING HOUSE RENTAL.......................................................25
0063.00 A
Plus per each room rental unit........................................................5-.9913.00
A
(6) RESIDENTIAL MOBILE HOME PROPERTY RENTAL ................25 0063.00 A
Plus per each rental unit space......................................................5 0013.00 A
(7) REVALIDATION APPLICATION PROCESSING CHARGE
Per license revalidation application......................................................10.00 C
Sec. 21-120s. - Sealing of nonidentified or unlicensed machines; shaFpening
se^o;GeG; shoeshine stands, solicitors, swap meet exhibitor.
(1) SEALING OF NONIDENTIFIED OR UNLICENSED MACHINES
Permachine ..................................... ....................................................
$10.00 C
(23) SHOESHINE STAND, fir . ..............15
0035.00 A
(34) SOLICITOR, per solicitor as principal........................................100
00250.00 A
(445) SOLICITOR, per solicitor as independent contractor............................35.00
A
(5&) PRINCIPAL'S SOLICITOR'S LICENSE.....................................200
00400.00 A
Per each person engaged in soliciting in the city..................................35.00
A
(6$)SWAP MEET EXHIBITOR, per participating exhibitor. ....................... 47903.00 D
Sec. 21-120t. - Theatrical performance; tow trucks, trucking and general delivery.
(1) THEATRICAL PERFORMANCE .............................................. $-50: 120.00 D
(2) TRUCKING AND GENERAL DELIVERY, per vehicle ................ 5&80120.00 A
(3) TOW TRUCKS, per vehicle....................................................... 50 00120.00 A
Resolution No. 2022-056
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Sec. 21-120v. - Vending and coin -operated machines.
COIN -OPERATED MACHINES OR DEVICES:
(1) Per $04-90.25 device and over........................................................... $20 nn n
(a) First Machine..............................................................................$ 25.00 A
(b) Per additional device... .........13.00 A
(2)Der $0 05 deyiG and uRde.
Sec. 21-120w. - Warehouses, a!GhFnen and pFivate ^I
(1) WAREHOUSE..........................................................................$44X]IW250.00A
FRXMti.�Liti.. ...
� - BF.sw.cnnsr..r_e:ss.
Section 6. Article XIV (Tax Holiday) is hereby added to Chapter 21 of the Santa
Ana Municipal Code (Licenses) to read in its entirety as follows.
ARTICLE XIV. - TAX HOLIDAY
Sec. 21-143. - Development and Administration of the Tax Holiday Program.
The City Manager and his or her designee shall develop and administer a Tax Holiday
program as authorized and provided in this article.
Sec. 21-144. - Duration and Application of Program.
The Tax Holiday program shall be conducted for the period of twelve 02) months as
specified hereinafter.
(a) All annual license renewals based upon a flat rate shall be for the twelve-
month period beginning January first of the current year and shall expire on the thirty-first
day of December of the current year.
(b) All annual license renewals based upon a variable flat rate shall be for the
twelve-month period beginning July first of the current year and shall expire on the thirtieth
day of June of the following year.
Resolution No. 2022-056
Page 19 of 22
(c) All annual license renewals based upon gross receipts shall be for the
twelve-month period beginning on April first of the current year and shall expire on the
thirty-first day of March of the following year.
(d) All quarterly licenses shall be for the period of three (3) months beginning
on the first day of January and ending on the thirty-first day of March; on the first day of
April and ending on the thirtieth day of June; on the first day of July and ending on the
thirtieth day of September on the first day of October and ending on the thirty-first day of
December.
Sec 21 145 Elements of program; requisites for compliance with program
(a) The provisions of this article shall apply to any persons who are required to
obtain a business license and pay a business license tax under Chapter 21 of the Santa
Ana Municipal Code and who files a business license application and complies with the
following program requisites:
Ski
M For any persons with unlicensed businesses who pay in full all business
license taxes for the current tax year within a ninety (90) day period shall then be excused
from all back tax liability including penalties and interest as described in Section 21-15.
For any persons with licensed businesses that are in arrears for business
license taxes or under -assessed as a result of improperly underreporting business license
tax liabilities and wish to cure an arrears or underreporting may do so. However, the
principal amount of the arrears outstanding or the principal amount of the under-
assessment must be paid in full in order to qualify for a penalty and interest Tax Holiday.
(b) For any business license taxes subject to a Tax Holiday under this program,
the City Manager and his or her designee may enter into an installment payment
agreement in lieu of the complete payment required under subdivision 2 of subsection
(a) of this section Failure of a person paving a business license tax to fully comply with
the terms of the installment payment agreement shall render the waiver of any penalties
and interest applicable thereto null and void unless the City Manager and his or her
designee determines that the failure was due to reasonable cause and the person
substantially complied with the terms of the installment agreement. An installment
agreement under this article shall have a minimum term of six (6) months, by which date
all arrears business license taxes fees and costs must be fully paid. The City Manager
and his or her designee may use their discretion to alter any existing installment
agreement to reflect the intent of the Tax Holiday.
Resolution No. 2022-056
Page 20 of 22
Section 21-146. - Implementation of article.
The City Manager and his or her designee shall adequately publicize the Tax
Holiday program, issue forms and instructions, and take all other necessary actions
needed to implement this article. The City Manager and his or her designee shall have
the discretion to create the application for the Tax Holiday program The Finance and
Management Services Agency shall have the discretion to determine whether a taxpayer
has substantially complied with the requirements of the Tax Holiday program
Section 7. Pursuant to Section 2(b) of Article XII I C of the California Constitution
and California Elections Code Section 9217, if a majority of the voters voting in the
election on this ordinance vote in its favor, the ordinance shall become a valid and binding
ordinance of the City of Santa Ana. The ordinance shall be considered as adopted upon
the date that the vote is declared by the City Council, and shall go into effect ten (10) days
after that date.
Section B. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance. The People of the City of Santa Ana hereby declare that they
would have adopted this ordinance and each section, subsection, sentence, clause,
phrase or portion thereof irrespective of the fact that any one or more sections,
subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 9. Following certification by the Clerk of Council that the citizens of
Santa Ana have approved this ordinance, the Mayor shall sign this ordinance and the
Clerk shall cause the same to be entered in the book of original ordinances and shall
cause the same, or a summary thereof, to be published as required by law.
PASSED, APPROVED, and ADOPTED by the People of the City of Santa Ana this
8th day of November, 2022
Vicente Sarmiento
Mayor
ATTEST:
Daisy Gomez
Clerk of the Council
Resolution No. 2022-056
Page 21 of 22
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
Resolution No. 2022-056
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