HomeMy WebLinkAbout1981-07-21; City Council; 6684; Constitutional apportionment section. : . CITY OF CARLSBAD
AGENDA BILL NO.
DATE: July 21, 1981
DEPARTMENT: Fi nance
Subject: Constitutional Apportionment Section for the Business License Ordinance
Statement of the Matter
According to the City Attorney, the Carlsbad Municipal Code section pertaining to
business licenses must be ammended to bring this section into compliance with the
state and federal constitutional orovisions.
This ammendment to the code primarily addresses the question of interstate commerce.
License fees may not be assessed by the city that pose an undue burden upon inter-
state commerce. If a business feels that an undue burden exists, the City Council
may be asked to adjust the license fee. Under these rules, a business may request that
the city only assess- license fees based upon business generated within Carlsbad,
This apnortionment of business activity between Carlsbad and non-Carlsbad sources
satifies the constitutional requirements.
A business that feels that the city's business license fee causes an undue burden must
bring this to the attention of the council within six months by requesting a
recomputetion of the license fee. The burden of nroving an undue burden lies with the
business questioning the fee. The council's decision will be final.
Fiscal Impact
This revision to the code could slightly reduce business revenues by allowing some
reductions in the computation of license fees. The exact amount of this "reduction is
not known; however, it should not be significant.
Exhibits
Memo from City Attorney dated 6/16/81.
Ordinance No. ^/7/£jff ammending Title 5, Chapter 5.04 of the Carlsbad Municipal Code,
COUNCIL ACTION:
7-21-81 Council introduced Ordinance No. 6063
APPROVED
DATE:
TO:
FROM:
SUBJECT:
MEMORANDUM
June 16, 1981
Assistant City Manager — Administrative Affairs
City Attorney
CONSTITUTIONAL APPORTIONMENT SECTION FOR THE
BUSINESS LICENSE ORDINANCE
As we recently discussed, the City's business license ordinance
is defective because it does not contain a constitutional
apportionment provision as required by federal and state
constitutions.
The attached ordinance will bring the Carlsbad business license
ordinance into compliance with the constitutional provisions.
The ordinance provides that the City Council shall make the
determination regarding the apportionment of the tax and provides
that the burden of proving the undue burden is on the applicant.
Other amendments to the business license ordinance may be
desirable; however, you decided to delay those amendments. This
ordinance should be placed on the Council agenda as soon as
possible.
VINC
x
BiONDO, JR., City Attorney
DANIEL S . HENTSCHKE, 'Assistant
City Attorney
DSH/mla
Attachment
cc:Finance Director
License Clerk
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ORDINANCE NO. 6063
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 5, CHAPTER
5.04 OF THE CARLSBAD MUNICIPAL CODE BY THE
ADDITION OF SECTION 5.04.085 RELATING TO
CONSTITUTIONAL APPORTIONMENT OF BUSINESS LICENSE
TAXES.
The City Council of the City of Carlsbad, California
does ordain as follows:
SECTION 1: That Title 5, Chapter 5.04 of the Carlsbad
Municipal Code is amended by the addition of Section 5.04.085 to
read as follows:
'5.04.085 Constitutional apportionment. None of the
license tax as provided for by Chapters 5.04 and 5.08 shall be so
applied as to occasion an undue burden upon interstate commerce
or be violative of the equal protection and due process clauses
of the Constitutions of the United States and the State of
'California.
In any case where a license tax is believed by licensee
or applicant for a license to place an undue burden upon
interstate commerce or to be violative of such constitutional
clauses, the licensee or applicant may apply to the City Council
for an adjustment of the tax. Such application may be made
before, at, or within six months after payment of the prescribed
license tax. The burden of proving an undue burden upon
interstate commerce or a violation of the equal protection or
due process clauses of the Constitutions of the United States
and the State of California shall be upon the applicant. The
decision of the City Council shall be final."
EFFECTIVE DATE: This ordinance shall be effective
thirty days after its adoption, and the City Clerk shall certify
to the adoption of this ordinance and cause it to be published
at least once in the Carlsbad Journal within fifteen days after
its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the 21st day of July ,
1981, and thereafter
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PASSED AND ADOPTED at a regular meeting of said City
Council held on the _4th___day of August , 1981, by
the following vote, to wit:
AYES: Council Members Casler, Anear, Lewis and Kulchin
NOES: None
ABSENT: Council Member Packard /
RONALD C./PACKARD, Mayor
MARY H. CASLER, Vice-Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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