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ORDINANCE NO. NS-2131
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA AMENDING SECTIONS 21-
61, 21-114, 21-117, 21-118, 21-120, AND
21-120p OF CHAPTER 2l OF THE SANTA ANA
MUNICIPAL CODE RELATING TO BUSINESS
LICENSE TAX.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
SECTION 1: That section 21-61 of Chapter 21 of the Santa Ana
Municipal Code, is hereby amended to read as follows:
Sec. 21-61.
Application processing charge.
A minimum charge is required for the processing of any
initial or renewed license application. This charge shall be
in addition to the business license tax and shall not be
prorated. The charge shall not be refunded if the application
is rejected. However, if after receipt of applicant's written
notification of cancellation, no required inspection or
investigation has taken place pursuant to any applicable
provision of this Code, and no business activity has been
transacted or carried on, then in that event a refund request
for all inspection or investigation fees paid exceeding
fifteen dollars ($15.00) may be made pursuant to section 21-87
subsection (d). In no event, however, shall the application
processing charge be made refundable, other than as part of a
refund made pursuant to section 21-87 subsection (b). Provided
further, that the collector may waive the processing charge in
the case of a bonafide nonprofit, charitable, or otherwise
fee-exempt licensee.
The provisions of this chapter notwithstanding, the
fOllowing application categories shall pay an application
processing charge in the amount specified:
(a) Initial period
application processing
charge
$ 15.00
(b)
Renewal
application
charge
processing
$ 15.00
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ORDINANCE NS-2131
PAGE 2
(c) Revalidation
application processing
charge . . . .
$ 10.00
SECTION 2: That Section 21-114 of Chapter 21 of the Santa Ana
Municipal Code, is hereby amended to read as follows:
Sec. 21-114.
Professional services.
Every person engaged in the business
professional services shall be taxed upon the
number of persons engaged or employed in such
accordance with the following schedule:
of providing
basis of the
business, in
(a) Each location in which professional services are
rendered, whether by one or more practicing principals or by
one or more professional independent contractors rendering
professional services pursuant to a contract of employment, or
whether by one or more salaried professional employees engaged
in rendering professional services - one hundred dollars
($100.00);
(b) Each practicing professional principal in excess of
one, engaged in rendering professional services, whether as
owner, or as partner, or officer, or as professional
shareholder - one hundred dollars ($100.00);
(c) Each additional person engaged or employed, either as
professional independent contractor rendering professional
services pursuant to a contract of employment, or whether as
salaried professional employee engaged in rendering
professional services - fifty dollars ($50.00);
(d) Each additional person engaged or employed otherwise
ten dollars ($10.00).
For the purpose of this section, the phrase "each
practicing professional principal" shall be deemed and is
declared to mean the maximum number of persons engaged in
rendering professional services (other than salaried employees
or independent contractors engaging their services pursuant to
a contract of employment and not otherwise sharing in the
profits of the business) and shall be computed based upon the
maximum number of practicing principals engaged in rendering
professional services for anyone-day period during any part
of the preceding business license period.
For the purpose of this section, the phrase "each
additional person engaged or employed" shall be deemed and is
declared to mean the average number of persons, whether
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ORDINANCE NS-2131
PAGE 3
381
licensed practitioners employed or otherwise engaged in
rendering professional services, and not otherwise sharing in
the profits of the business, or whether any other category of
person, directly or indirectly paid for their service ana not
otherwise sharing in the profits of the business.
For the purpose of determining the average number of
persons engaged or employed, the person sUbject to the tax
shall ascertain separately the total number of hours of
service performed by licensed practitioners engaged or
employed during the preceding year, including paid leave, and
the total number of hours of service performed by all other
persons engaged or employed during the preceding year,
including paid leave, in each case dividing the total number
of hours of service by the full time equivalent (2,080 hours).
In computing the average number of persons engaged or
employed, fractions shall be rounded to the nearest whole
number with one-half (.5) or greater being rounded up and less
than one-half (.5) being round down.
In the case of an application for an original license,
applicant shall state both the maximum number of practicing
professionals engaged or intended to be engaged in rendering
professional services and the average number of persons
engaged or employed or intended to be engaged or employed to
assist in the conduct of applicant's business. Thereafter, the
license tax provided for herein shall be based solely upon the
hereinabove set forth method of computation.
SECTION 3: That Section 21-117 of Chapter 21 of the Santa Ana
Municipal Code, is hereby amended to read as follows:
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 (1/4) 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 is 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
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ORDINANCE NS-2131
PAGE 4
January thirty-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
applicant fails to submit a report of the actual gross
receipts received pursuant to section 21-78, 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
January first of the current year but before
November first of the current year shall post a
deposit of two hundred dollars ($200.00).
(2) All new businesses beginning business on or after
November first of the current year but before
January first of following year shall post a
deposit equivalent to one and one-sixth (1-1/6) of
the required deposit for all new businesses
beginning January first.
,
Where 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 applicant's
renewal fee as calculated pursuant to sections 21-78 or 21-79.
Where applicant ceases to transact and carryon the business
licensed on or before the expiration of the period for which
the new license is issued, and where applicant's fee is
determined to be in excess of the amount of the specified
deposit, applicant shall remain liable for said deficiency
which shall be deemed due and collectible at the same time and
in the same matter as all other annual gross receipts fees due
and payable upon renewal.
Where 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 applicant's
renewal fee as calculated pursuant to sections 21-78 or
21-79. Where applicant ceases to transact and carryon the
business licensed on or before the expiration of the period
for which the new l.icense is issued, and where appl icant' s fee
is determined to be less than the amount of the specif ied
deposit, said surplus may be 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 ten dollars
($10.00) per year.
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ORDINANCE NS-2131
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383
SECTION 4A: If Ordinance No. NS-2133, pertaining to
pushcarts, has been adopted prior to the adoption of this ordinance
or is adopted on the same day that this ordinance is adopted, that
section 21-118 of the Santa Ana Municipal Code is amended to read
as follows:
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 ten dollars ($10.00) per year.
SECTION 4B: If Ordinance No. NS-2133, pertaining to
pushcarts, has not been adopted prior to the adoption of this
ordinance and is not adopted on the same day that this ordinance is
adopted, that section 21-118 of the Santa Ana Municipal Code is
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384
ORDINANCE NS-2131
PAGE 6
amended to read as follows:
Sec. 21-118.
Same; nonresident businesses.
(a) All new businesses located elsewhere, excluding
businesses engaged 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 ten dollars ($10,00) per ~ear.
SECTION 5: That Section 21-120 of Chapter 21 of the Santa Ana
Municipal Code, is hereby amended to read as follows:
Sec. 21-120. Flat rate and variable flat rate tax schedules.
Flat rate and variable flat rate taxes are set forth' in
section 21-120a through 21-120z of this article.
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ORDINANCE NS-2131
PAGE 7 385
SECTION 6A: If Ordinance No. NS-2133, pertaining to
Pushcarts, has been adopted prior to the adoption of this ordinance
or is adopted on the same day that this ordinance is adopted, that
section 21-120p of the Santa Ana Municipal Code is amended to read
as follows:
Sec. 21-120p. Pawnbrokers, peddlers,
services, pushcarts.
professional
(1)
PAWNBROKERS . . . . . .
. . . .
400.00 A
(2) PEDDLER, per peddler as principal
or . . . . . . . . . . . . . . .
100.00 A
10.00 D
(3) PEDDLER, per peddler as independent
contractor . . . .. ...
35.00 A
(4) PRINCIPAL'S PEDDLER'S LICENSE
per each person engaged
peddling in the city . . . .
(5) PROFESSIONAL SERVICES
200.00 A
35.00 A
a) Per location, plus . . . 100.00 A
b) Each practicing principal in
excess of one . . . . . 100.00 A
c) Each licensed associate 50.00 A
d) Each additional person 10.00 A
(6) PUSHCARTS, per pushcart 200.00 A
SECTION 6B: If Ordinance No. NS-2133, pertaining to
pushcarts, has not been adopted prior to the adoption of this
ordinance and is not adopted on the same day that this ordinance is
adopted, that section 21-120p of the Santa Ana Municipal Code is
amended to read as follows:
Sec. 21-120p. Pawnbrokers, peddlers, professional
services.
(1) PAWNBROKER . . . . $ 400.00 A
(2) PEDDLER, per peddler as principal 100.00 A
or . . . . 10.00 D
(3) PEDDLER, per peddler as independent
contractor 35.00 A
(4) PRINCIPAL'S PEDDLER'S LICENSE 200.00 A
per each person engaged
peddling in the city 35.00 A
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ORDINANCE NS-2131
PAGE 8
(5) PROFESSIONAL SERVICES
Per location, plus
100.00 A
a)
b)
Each practicing principal in
excess of one
100.00 A
c)
Each licensed associate
50.00 A
d)
Each additional person
10.00 A
SECTION 7: This ordinance shall come into full force and
effect on the first day of the first calendar month following the
effective date of this ordinance.
SECTION 8: The tax rates established by this ordinance shall
be subject to adjustment pursuant to section 21-121 of the Santa
Ana Municipal Code to the same extent as if the tax rates
established by this ordinance had been established by Ordinance No.
NS-1922; provided that any tax liability due under Chapter 21 of
the Santa Ana Municipal Code for which payment was due prior to the
adoption of this ordinance shall be governed by the provisions of
said chapter as they existed prior to this ordinance.
SECTION 9: 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 city Council of
the city of Santa Ana hereby declares that it would have adopted
this ordinance and each section, subsection, sentence, clause,
phrase or portion thereof irrespective of the fact that anyone or
more sections, subsections, sentences, clauses, phrases, or
portions be declared invalid or unconstitutional.
SECTION 10: Neither the adoption of this Ordinance nor the
repeal hereby of any ordinance shall in any manner affect the
prosecution for violation of ordinances, which violations were
committed prior to the effective date hereof, nor be construed as
affecting any of the provisions of such ordinance relating to the
collection of any such tax or penalty or interest or the penal
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ORDINANCE NS-2131
PAGE 9
387
provision applicable thereto and all rights and obligations
thereunder appertaining shall continue in full force band effect.
ADOPTED this
ATTEST:
~.~~Y -Jl{/
ce C. Guy /
Clerk of the Counc
COUNCILMEMBERS:
Young
Acosta
Griset
McGuigan
Norton
Pulido
Richardson
Ave
Nav
Absent
Ave
Nav
Ave
Ave
15th day of Jul Y
D~~
, 1991.
APPROVED AS TO FORM:
~
Edwar . C op r
city Attorne
CERTIFICATE OF ORIGINALITY & PUBLICATION
State of California
County of Orange
I, JANICE C. GUY, Clerk of the Council, do hereby certify the
attached Ordinance liS. 2.13/
to be the original ordinance
adopted by the city Council of the city of Santa Ana on
~/;S/f I ; and that said ordinance was published in
accordance with the Charter of the city of Santa Ana.
f/.;c~'L,$fl 7hl?1
Clerk of the Coun , Date
city of Santa Ana