HomeMy WebLinkAboutNS-2161 - Amending Sections and Adding Article XI to Chapter 21 of Santa Ana Municipal Code...ORDINANCE NO. NS- 2161
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA AMENDING SECTIONS 21-
1, 21-72, 21-73, 21-75, 21-76, 21-77,
21-78 AND 21-117 AND ADDING ARTICLE XI
TO CHAPTER 21 OF THE SANTA ANA M I/NICIPAL
CODE, RELATING TO THE BUSINESS LICENSE
TAX.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
~: That section 21-71 of the Santa Ana Municipal Code
is hereby amended to read as follows:
21-71. Term of license; &nnual and quarterly.
Ail annual license renewals shall be for the period of twelve
months as specified hereinafter.
(a) Ail 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) Ail 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.
(c) Ail 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) Ail 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.
ORDINANCE NS-2161
Page 2 ~1 9
$~CTION 2: That section 21-72 of the Santa Ana Municipal Code
is hereby amended to read as follows:
Sec. 21-72 · Term of license; new; annual and quarterly.
(a) Ail new annual licenses issued and based upon a flat rate
shall be for the period of time remaining in 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; provided,
however, that all new annual licenses issued between December first
of the current year and December thirty-first of the current year
shall be for the period of the month of December of the current
year as well as the entire period of the following twelve months
ending on December thirty-first.
(b) Ail new annual licenses issued and based upon a variable
flat rate shall be for the period of time remaining in the twelve
month period beginning July first of the current year and shall
expire on the thirtieth day of June of the following year;
provided, however, that all new annual licenses issued between May
first of the current year and May thirty-first of the current year
shall be for the period of the month of May of the current year as
well as the entire period of the following twelve months ending
June thirtieth.
(c) Ail new annual licenses issued and based upon gross
receipts shall be for the period of time remaining in the twelve
month period beginning April first of the current year and shall
expire on the thirty-first day of March of the following year;
provided, however, that all new annual licenses issued between
March first of the current year and March thirty-first of the
current year shall be for the period of time in the month of March
of the current year as well as the entire period of the following
twelve months ending March thirty-first.
(d) All new quarterly licenses issued shall be for the time
remaining in the individual quarter.
ORDINANCE NS-2161
Page 3
SECTION 3: That section 21-73 of the Santa Ana Municipal Code
is hereby amended to read as follows:
Bec. 21-73. Renewal due dates.
(a) The flat rate license taxes required to be paid by the
provisions of this chapter, if paid annually shall become due and
payable on the first day of December and shall become delinquent on
the first day of January of each year, or if paid quarterly shall
become due and payable on the first day of December, March, June
and September and shall become delinquent on the first day of
January, April, July and October respectively.
(b) The variable flat rate license taxes required to be paid
by the provisions of this chapter, if paid annually shall become
due and payable on the first day of June and shall become
delinquent on the first day of July of each year, or if paid
quarterly shall become due and payable on the first day of June,
September, December and March and shall become delinquent on the
first day of July, October, January and April respectively.
(c) The gross receipts license taxes required to be paid by
the provisions of this chapter, if paid annually shall become due
and payable on the first day of March and shall become delinquent
on the first day of April of each year, or if paid quarterly shall
become due and payable on the on the first day of March, June,
September and December and shall become delinquent on the first day
of April, July, September and January respectively.
(d) The gross receipts license tax and the variable flat rate
license tax for the current year shall each be based respectively
on the filed gross receipts statement and the filed variable flat
rate assessment statement. The flat rate license tax for the
current year shall be based on the schedule of flat rate taxes as
specified by the provisions of this chapter.
(e) Any business holding a currently valid annual city
business license tax receipt and desiring to pay tax quarterly may
elect upon renewal to do so by making application and paying a
quarterly fee equal to twenty-five (25) per cent of the annual
rate.
(f) Ail daily or monthly license taxes shall be paid in
advance.
SECTION 4: That section 21-75 of the Santa Ana Municipal Code
is hereby amended to read as follows:
8mo. 21-75. Notification of flat rate tax due.
Notification of business license tax due, when said taxes are
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ORDINANCE NS-2161
Page 4
based upon flat rates, will be given by first class United States
mail no later than the fifteenth day of December, provided that
failure to receive such notification shall not exempt the licensee
from all requirements under this chapter.
SECTION 5: That section 21-76 of the Santa Ana Municipal Code
is hereby amended to read as follows:
Bee. 2X-76.
Renewal statement; variable fiat rate;
submission end filing; notifioation of
variable flat rate tax renewal.
(a) Where the license is based on a variable flat rate, the
applicant shall submit to the collector, for his or her guidance in
ascertaining the amount of license tax to be paid by the applicant,
a written statement upon a form to be provided by the collector,
written under penalty of perjury or sworn to before a person
authorized to administer oaths, setting forth such information
concerning the nature, location, intended duration and ownership of
applicant's business as well as any additional information required
by the collector to enable him or her to ascertain the amount of
license tax to be paid by said applicant pursuant to the provisions
of this chapter. The filing dates for the submission of renewal
statements and the payment of business license tax due shall be
during the period from the first day of June to the thirtieth day
of June of each calendar year. In the case of a variable flat tax
based upon the number of persons engaged or employed, the statement
shall be for the preceding twelve-month period beginning April
first of the preceding year and ending March thirty-first of the
current year.
(b) Where a category or class of variable flat rate licenses
is based on a variable flat rate applied to a fixed amount or
number which then thereafter does not vary, then, at the discretion
of the collector, the variable flat rate assessment statement may
be omitted and a notification of business license tax due may be
given at the same time and in the same manner as is applied in the
case of flat rate business license. Said business license tax shall
then be due and payable and shall become delinquent in the same
manner as flat rate business licenses.
(¢) Notification of business license tax renewal, when such
taxes are based upon variable flat rates, will be given by first
class United States mail no later than the fifteenth day of May,
provided that failure to receive such notification shall not exempt
the licensee from all requirements under this chapter.
ORDINANCE NS-2161
Page S :225
~: That section 21-77 of the Santa Ana Municipal Code
is hereby amended to read as follows:
Bec. 21-77.
Renewal statement; gross receipts;
submission and filing; notification
of gross receipts tax renewal.
(a) In all cases where the license is based on gross receipts,
the applicant shall submit to the collector, for his or her
guidance in ascertaining the amount of the license to be paid ~y
the applicant, a written statement upon a form to be provided by
the collector, written under penalty of perjury or sworn to before
a person authorized to administer oaths, setting forth such
information concerning the nature, location, intended duration, and
ownership of applicant's business as well as applicant's gross
receipts during the preceding calendar year as may be required by
the collector to enable him or her to ascertain the amount of
license tax to be paid by said applicant pursuant to the provisions
of this chapter. The filing dates for the submission of gross
receipts statements and the payment of business license tax due
shall be during the period from the first day of March to the
thirty-first day of March.
(b) Notification of business license tax renewal, when said
taxes are based upon gross receipts, will be given by first class
United States mail no later than the fifteenth day of February,
provided that failure to receive such notification shall not exempt
the licensee from all requirements under this chapter.
SECTION 7: That section 21-78 of the Santa Ana Municipal Code
is hereby amended to read as follows:
Bec. 21-78.
Miscalculation of tax, application of deposit or
credit amount; effect.
(a) Where the applicant has submitted a timely renewal
statement and remitted the tax owed as required pursuant to
sections 21-76 and 21-77, no penalty or interest shall accrue for
thirty (30) days on any amount ascertained to be deficient, where
said deficiency is determined to be the result of the applicant's
miscalculation of the amount of the business license tax owed.
(b) Where a deposit or credit amount exists and the applicant
has submitted a timely renewal statement, no penalty or interest
shall accrue for thirty (30) days on the any amount ascertained to
be deficient.
(c) Notification of deficient business license tax due, will
be given by first class United States mail given no later than the
fifteenth day of the first month following the due dates for the
submission of renewal statements as set forth in sections 21-76 and
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ORDINANCE NS-2t61
Page 6
21-77.
(d) Failure to receive such notifications shall not exempt
the licensee from all requirements under this chapter.
SEC I_~: That section 21-117 of the Santa Ana Municipal
Code is hereby amended to read as follows:
Soo. 21-1L7. Hew 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) Ail 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 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)
Ail 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)
Ail new businesses beginning business on or after March
first of the current year but before April first of the
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
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ORDINANCE NS 2161
Page 7
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 matter
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 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.
SECTION 9: That Chapter 21 of the Santa Ana Municipal Code is
hereby amended by adding an article thereto, to be numbered XI, and
consisting of sections 21-122, 21-123, 21-124 and 21-125, which
said article reads as follows:
ARTICLE XI. ~SBESSHENT BY LIEN
Beo. 2L-~22. Nonpayment of tax; assessment by lien.
The amount of any business license tax, penalty or interest
imposed by this chapter shall be deemed a debt to the city; and any
person carrying on any such business without first having procured
a business license therefor shall be liable to an action in the
name of the city in any court of competent jurisdiction as
hereinabove provided for in section 21-24.
An action to collect the business license tax must be
commenced within three years of the date the business tax becomes
due. An action to collect the penalty for non-payment of the
business license tax must be commenced within three years of the
date the penalty accrues.
The amount of business license tax, penalty and interest
imposed under the provisions of this chapter is hereby assessed
against the business property on which the tax is imposed in those
instances where the owner of the business and the business property
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ORDinANCE S-2161
Page 8 1
are one and the same, or where the business property is leased or
rented by the owner-lessor as commercial or residential rental
property as hereinabove defined in section 21-3. If the business
license taxes are not paid when due, such tax, penalty and interest
shall constitute an assessment against such business property for
the amount thereof, which lien shall continue until the amount
thereof, including all penalties and interest are paid, or until it
is discharged of record.
The conviction and punishment of any person for transacting
and carrying on any business within the city without a business
license shall not excuse or exempt such person from the application
of the lien provisions of this section; nor shall it serve as a bar
to a civil action brought in the name of the city, in any court of
competent jurisdiction.
Bec. 21-123. Notice of hearing of lien.
The collector shall file with the city manager a written
notice of those persons against whose property the city will file
liens. Upon receipt of such notice the city manager shall present
same to the city council, and the city council shall forthwith, by
resolution, fix a time and a place for a public hearing on such
notice.
The collector shall cause a copy of such notice to be served
upon the owner of the business/business property not less than ten
(10) days prior to the time fixed for such hearing. The collector
shall give notice in the following manner:
(1) By serving it personally, or causing it to be served
personally by a duly authorized agent; or
(2)
By depositing it in the United States mail, postage
prepaid, addressed to the owner of the business/business
property at the address listed in the most recent
property ownership records provided to the city by the
county assessor.
As of the date that the collector causes notice to be served or
mailed shall comprise proper service. When made by mail, service
shall be deemed complete at the time of deposit in the United
States mail.
21-124. Collection of delinquent taxes by special tax
roll assessment.
With the conformation of the report by the city council, the
delinquent business license tax charges contained therein which
remain unpaid by the owner of the business/business property shall
constitute a special assessment against said business property and
shall be collected at such time as is established by the county
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ORDINANCE NS-2161 .~33
Page 9
assessor for inclusion in the next property tax assessment.
The collector shall report to the county assessor for
inclusion in the next property tax assessment the total sum of
unpaid delinquent business license tax charges consisting of the
delinquent business license taxes, penalties, interest at the rate
of twelve (12) percent per annum from the date of recordation to
the date of lien, an administrative charge of fifty dollars
($50.00) and a release of lien filing fee in an amount equal to the
amount charged by the Orange County Recorder's office.
Thereafter, said special assessment may be collected at the
same time and in the same manner as ordinary municipal taxes are
collected, and shall be subject to the same penalties and the same
procedures of sale as provided for delinquent ordinary municipal
taxes. The special assessment liens shall be subordinate to liens
except for those of state, county and municipal taxes with which it
shall be upon parity. The lien shall continue until the assessment
and all interest and charges due and payable are paid. All laws
applicable to the levy, collection and enforcement of municipal
taxes shall be applicable to said special assessments.
Sec. 21-125. Recordation of lien for delinquent charges.
Upon confirmation of the report of delinquent business license
tax charges by the city council, a lien on the real property of the
delinquent business/business property owner for delinquent business
license tax charges which were assessed will be recorded with the
recorder of the county of orange.
~: Sections 1 throUgh 8 of this ordinance shall
become effective on January 1, 1993, subject to the following
modifications:
During the period January 1 through March 31, 1993, all
applicants for an annual license renewal based upon gross
receipts shall pay an amount equal to 125% of the annual
business license tax otherwise due, and all applicants
applying for a new annual business license based on gross
receipts shall post a deposit equal to 125% of the annual
business license tax deposit otherwise due. The business
license granted therefor shall expire March 31, 1994.
During the period January 1 through March 31, 1993, all
applicants for an annual license renewal based upon a
variable rate shall pay an amount equal to 150% of the
annual business license tax otherwise due and all
applicants for a new annual business license based upon
a variable rate shall post a deposit equal to 150% of the
annual business license tax deposit otherwise due.
During the period April 1 through June 30, 1993, all
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ORDINANCE NS-2161
Page 10
applicants for an annual license renewal based upon a
variable rate shall pay an amount equal to 125% of the
annual business license tax otherwise due and all
applicants for a new annual business license based upon
a variable rate shall post a deposit equal to 125% of the
annual business license tax deposit otherwise due. The
bus~nes~ license ~rantad therafor ~hall exDtre June 30,
1994.
Ail other sections of this ordinance shall become effective 30 days
following the date of adoption of this ordinance.
~CTION 11: 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 any one or
more sections, subsections, sentences, clauses, phrases, or
portions be declared invalid or unconstitutional.
SECTION 12: 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 license or penalty or the penal provision
applicable to any violation thereof, nor to affect the validity of
any bond or cash deposit in lieu thereof, required to be posted,
filed or deposited pursuant to any ordinance and all rights and
obligations thereunder appertaining shall continue in full force
and effect.
235
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ORDINANCE NS-2161
Page 11 537
ADOPTED this 15th
ATTEST:
COUNCILMEMBERS:
Young Aye
Pulido Aye
Acosta Aye
Griset
MoGuigan ~=~nt
Norton Nay
Richardson Ay~
day of June 1992.
Mayor
APPROVED AS TO FORM:
city Attorney
CERTIFICATE OF ORIGINALITY & PUBLICATION
State of California
County of Orange
I, JANICE C. GUY, Clerk of the Council, do hereby certify the
attached Ordinance ~5- ~/~ / to be the original ordinance
adopted by the City Council of the City of Santa Ana on
~-/.~'--~ ; and that said ordinance was published in
accordance with the Charter of the city of Santa Ana.
C~he Council, Date
C~ty of Santa Ana