HomeMy WebLinkAbout10/6/1999 - STAFF REPORTS (7) jr
DATE: October 6, 1999
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TO: City Council b l'
.r
FROM: Director of Financ e&Treasurer
BUSINESS LICENSE ORDINANCE AMENDMENT-REDUCTION iN TAX ON
AUCTIONS
RECOMMENDATION:
It is recommended that the City Council amend the Business License Ordinance to reduce the
business license tax on Auction Houses from$399 per quarter to S266 per year.
BACKGROUND:
One of the businesses included in the most recent annexation was an auction and antique resale
business. The City's Business License Ordinance sets the tax for auctions at$399 per quarter or
$1,596 per year. When informed of the quarterly requirement,the business owner complained.
Since the City had no other auctions houses with a fixed location,the question had never come
UP.
The requirement for a quarterly payment is unique to this one type of business. All other City
business licenses are renewed annually. The quarterly payment requirement has apply been
part of the ordinance for at least 25 years, and the original rationale for doing so is unknown.
By way of comparison,the annual license tax for both Pawnbrokers(section 3.84.290)and for
Second-hand Dealers(section 3.94.350)is$266. The Police Department's Detective Division
notes no unusual activity or circumstances which would justify the significantly higher charge to
auctions.
The amendment to the Ordinance changes a reference in Section 3.94.020 from the rate
established by Section 3.90.210(r)($399)to Section 3.90.210(p), ($266), and deletes the
reference to quarter years.
Approval of the change would reduce Business License Tax revenue by$1,330 per year. The
total revenue for the fiscal year ended June 30, 1999 was S641,281.
Approved Submitted
Rob W.Parkins Thomas M.Kanarr
City Manager Director of Finance&Treasurer
Attachments: Legislative Draft
Amended Ordinance
I ��
ORDINANCE No.
AN ORDINANCE OF THE CITY OF PALM SPRINGS
CALIFORNIA AMENDING SECTION 3.84.020 OF THE
PALM SPRINGS MUNICIPAL OWN TO DELETE
THE REFERENCE TO "QUARTERN YEAR, AND
TO CHANGE THE RATE REFERENCE FROM
3.90.210(r) TO 3.90.210(p)
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, D038 HEREBY ORDAIN AS
FOLLOWS:
SECTION 1. Section 3.84.020 of the Palm Springs Municipal Code in hereby amended
to read as follows:
3.84,020 Auction- For the busineaa of selling real or personal property
of any kind or description at auction, the tax for each year or fraction
thereof shall be at the rate net forth in Section 3.90.230(p).
SECTION 2. Effective Date. This Ordinance, being an Ordinance relating to taxes
for the usual and current expenses of the City, shall take affect immediately
upon its passage, pursuant to Government Code Section 36937 (d) .
SECTION 3. Severability. In the event any section, subsection, sentence,
clause, phrase, or portion of this Ordinance in for any reason held invalid or
unconstitutional by any court of competent jurisdiction, such portion shall be
deemed as a separate, distinct, and independent provision, and such holding shall
not affect the validity of the remaining portions of this Ordinance.
SECTION 4. Publication. The City clerk in hereby ordered and directed to
certify to the passage of this Ordinance, and to cause the same or e, summary
thereof or a display advertisement, duly prepared according to law, to be
published in accordance with the law.
ADOPTED this day of , 1999.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City clerk Mayor
REVIEWED & APPROVED AS TO FORM:
rb
Legislative Draft
3-84.020, For the business of selling real or pmonal property of any kind or
description at auction, the tax for each gm tw year or fraction thereof shall be at the
rate set forth in Section 3.90.210 (s) (p)