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HomeMy WebLinkAboutNS-2131 - Amending Sections 21-61, 21-114, 21-117, 21-118, 21-120, and 21-120p... ,aria 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 1 380 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 2 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 3 382 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. 4 ~ ORDINANCE NS-2131 PAGE 5 383 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 5 384 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. 6 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 7 I I 386 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 8 .,....-~---'----~ 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