HomeMy WebLinkAbout1995-06-27; City Council; 13213; APPEAL OF BUSINESS LICENSE TAX LATE PENALTY PAYMENT* n Cl@ OF CARLSBAD - AGEVA BILL
AB # *pm '3 at 3 TITLE: APPEAL OF BUSlNESS LICENSE
TAX LATE PENALTY PAYMENT
DEPT. - DEPT. HD. 1
CITY ATT&
CITY MGR.9 -
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RECOMMENDED ACTION:
Adopt Resolution No. 9 5- 1% I denying the appeal by Subway #4584 of the penalties on Business License Tax for the tax years which began on April 1, 1992,
1993 and 1994.
ITEM EXPLANATION:
The Carlsbad Municipal Code (Chapter 3.12) requires all businesses operating in the City of Carlsbad to obtain a tjusiness license from the City of Carlsbad and to pay the business license tax that is calculated on the estimated Gross Receipts for the ensuing twelve month tax period. There is also included in the Municipal Code a provision for the businesses that fail to obtain their business license in a timely fashion to be assessed late and delinquent penalties to be paid in addition to the business license tax for that respective period.
Subway #4584 commenced business in the City of Carlsbad on April 30, 1992
without first obtaining a business license. Mr. Richard Bellon, the owner, continued to operate the business in the City until November 11, 1994, the date
on which an application was filed. Mr. Bellon was informed of the requirement to
~ pay penalties in addition to the business license tax at the time of his filing the
application for a business license. Mr. Bellon is now appealing to the City Council
for a dismissal of the late penalties related to the delinquent payment of the
business license taxes previously referenced. Mr. Bellon's written appeal (Exhibit
A) states the following:
1. The owner of the business had a tremendous amount of details to take care of before opening the business.
2. The owner of the business overlooked the filing for the business license after going through a permit process that was long and complicated; the business license was the only thing overlooked.
I 3. The City of Carlsbad did not inform the owner about the business license tax.
Staff recommends that the appeal be denied. The code is clear on the issue, of
other businesses in the past under the same section of the code.
Also, although the City does take steps to inform new businesses about the tax,
it is the responsibility of the business to find out about the requirements of the jurisdiction in which they are operating. Most cities in California do impose a
business license tax or fee. It is not an unusual requirement.
the assessment of late penalties and similar penalties have been assessed to
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PAGE TWO OF AGENDA BILL NO. 13,213
FISCAL I MPACT:
Subway #a84 has been assessed late penalties of $192.73 for the three year
remitted the three year total business license tax in the amount of $385.45 at the time of
filing the application. If the appeal were granted, it would result in the loss of $192.73
of business' license tax revenue for the fiscal year of 1994-1995.
EXHIBITS:
delinquency of the tax periods of 1992-1993, 1993-1994 and 1994-1995. The owner
a) Letter from Subway #4584 dated January 23, 1995.
b) Resolution No. 95-181 denying the appeal of penalties on business license taxes.
c) Carlsbad Municipal Code Section 5.04.020.
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RESOLUTION NO. 95-181
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA DENYING
THE APPEAL OF PENALTIES ON BUSINESS
LICENSE TAXES
4 11 WHEREAS, the City has received a request to appeal the penalties on a business
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license issued by the City of Carlsbad; and
WHEREAS, Chapter 3.12 of the Carlsbad Municipal Code requires all businesses
operating in the City to obtain a business license and provides for penalties to be : .a assessed for any delinquent taxes; and
9 WHEREAS, the business license taxes paid for the Subway #4584 business were
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California, as follows: 12
NOW, THEREFORE, BE IT RESOLVED by the City Cbuncil of the City of Carlsbad, .11
delinquent for the tax years which began on April 1, 1992, 1993 and 1994.
13 1. That the foregoing recitations are true and correct.
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2. That the appeal of the penalties by the Subway #4584 is denied.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of
3.6
vote, to wit: 17
the City of Carlsbad, California on the 27th day of JUNE , 1995, by the following
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AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
%IAUDE A. LIWB, 'Mayor
ATTEST:
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5.04.010 -
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Chapter 5.04
LICENSING BUSINESSES GENERALLY
sections:
5.04.010 ' Definitions. - . .
5.04.020 License required.
5.04.030 Violations. #-
5.04.040 License nontransferable except
for changed location,
5.04.050 Duplicate licenses. . ..
5.04.060 Separate license for each place .'
of business.
5.04.070 posting and display of lice-.
5.04.080 Exemptions.
5.04.085 Canstihtiod appo&onment. .
5.04.090 Appeals to council.
5.04.100 Uniawfui operation or nuisance:
5.04.1 10 Vested rights.
5.04.120 , . Re€d to issue to hazardous
businesseS"Appe91,
5.04.130 Adjustments. ..
5.04.140 permits or franchises 'h lieu of''
prescribed licenses. -
5.04.010 Detinitions. 2; L': . '
. ' As used in this title the following words and
phrases shall have the following meanings:
(1) "Byiness" includes .professions, trades,
occupations and aiI and every kind of calling
whether ornot carried on for profit; . .. .
(2) "Gross receipts" includes the total
amount of the sale price of ali sales aid the totaL
amount charged or received for the ~erfoxmance
of any act or seMce, of whatever nature it may
be, for which a charge is made or credit ailowed,
whether or not such act or seMe is done as part
of oi in connection with the de of mate-
goods, wares or merchandise. Inciuded in gross
receipts shall be all receipts, cash, credits, and
property of any kind or nature without any
deduction therefkom on account of the cost of
the property sold, the cost of the materiais used,
, labor or service costs, interest paid or payable, or
losses or other expenses whatsoever. Gross
.'
receipts shall also include all receipts from cain operated vending machines. Excluded from
grossreceiptsshailbecashdiscountsallowedand
taken. on des; any tax required by law to be
included in or added to the purchase price and
coilected from the customer or purchase^ such
part of the sale price.of property returned by
purchas@rs upon.recission of the contract &de
asisrefimdedeitherincashorbycredi~and
amounts collected for others where the bushes
is acting as an agent or trustee to the extent thai
kh'amounts are paid to those for whom Col.
lected. (Ord. 6049 $1,1973: Ord. 6040 9 6,1967)
5.04.020 fi&'requird .. ." :
:. .. ,. . . .. -. . ~ .. .
There are imposed upon persons engaged h
' therspecifikd businesses in this title, within thc
city limits,.license taxes in the amounts here!
inafter.prescribeci..The license tax shaU be dut
and pawie before the commencement of an1
.-new business and.deiinquent on and after thc
thirty-first. day after commencement of a nev
business. Rr all previously licensed busin-
the.licensetax shail be due and payable annuaiI!
~nadvanceonthe~dayofthemonthinwhicf
. thebushesswasoriginailyestablishedanddeiin
,.i quent on the tenth day of the following month. Ii
. the- ev~ 'license ta:
.. ,.'before itbecomes deiinquent, his tax shali the1
awbeed by a pew
.:.:$wenty-fiveuercent of the license tax and there
;: 'afterindoriemxen toerdayforeachaddi
tiod deiinquent day; provided however, . . .. r tha
.. the amount o&Kautomatic ix~crease ovk ti~
. . usUaltaxShallin:no.event exceed fifty percent a
"~'theamountoftheusualIicensetaxdue.Nothin
.contained. in tdis. section shall be CoIlStlUed'a
.' .permitlingthe operation of a business which i
., .I . intended to be operated for oniy a limitedpena
T of-time- and on: a nonpermanent basis, such a
athietic events,. camivak, etc., without havin
first- obtained a business license so to do. E%
such license. shail show the number of SUC.
lice% the perid- of time covered thereby, tfi
name: of the person to whom issued, and th
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5.04.020 -
location or place where such business is to be
commenced or conducted, and upon a detach-
able portion of such license, shall also show the
number of such license and the amount of the fee
paid therefor. No error or mistake on the part of
the license collector or any other person in the
determination, stating or collection of the
amount of any license tax 'shall prevent or preju-
dice the coiledion by or for the city of what shall
be actually due from anyone commencing or
conducting any business subject to a license tax,
nor shall the issuance of any license under this
title authorize the commencing or conducting of
any business in any zone, district or location
within the city, contrary to the provisions of any
zoning or other ordinance of the city.
Applications on forms prescribed by the
license collector shall be filed annually by each
licensee before the issuance of a license. Any
e -
provided in this title, any of the information
required to be furnished hereunder to the license
collector for purposes of determining the correct
tax to be collected. (Ord. 6073 0 1, 1983; Ord.
6061 0 1 (part), 1980; Ord. 6049 0 2, 1973: Ord.
6040 8 2, 1967) I
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5.04.030 Yioiations.
It is unlawfid for any person to conduct ~IIY
business within the city without first having
obtained from the city a license so to do, and each
day or portion thereof of conduct of such busi-
ness constitutes a separate violation of this title.
It is unlawful for any person my to make
any false statement or representation for the pur-
PO& of obtaining a business license pursuant to
the provisions of this title. (Ord. 6040 $3,1967)
person intending to engage in the business of
owning, renting, leasing, operating, maintaining
or servicing coin operated vending machines
shall include with the application a list of the
number, type and location of such machines.
For the purposes of determining the correct
tax to be collected, the license collector may at
any time require a licensee to furnish his books of
account and records for inspection and audit and
may require the production of other documents
and information A garding the business as autho-
ked by law. Refusal by a licensee or applicant to
furnish such books of account and records upon
request therefor by the. license collector. shall
automatically revoke any then existing business
license, and shall require the license collector to
refuse to issue any further business licenses to the
person so qfbsing. Any and all books of account
and records fidshed pursuant hereto, and any
and all statements. made by a. licensee for the
purpose of obtaining a business license shall be
confidential in character and shall not be subject
to public inspection or disciosure, except in the
proper proceedings before the city council or a
competent court or tribunal. It is unlawful for
any person to cause to be disclosed, except as
5.04.040 License nontransferable except for
changed location.
No license issued pursuant to this title shall be
transferable; provided, that where a license is
on a business at a particular place, such licensee
may upon application therefor and the paying a
fee of one dollar have the license amended to
authorize the transacting and carrying on of such
business under the license at some other location
to which the business is or is to be moved. (Ord.
6040 0 4,1967)
issued authorizing a person to transact and carry
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5.04.050 Duplicate licenses.
Upon receipt of an &davit filed in the office
of the license collector, by or on behalf of any
licensee, stating that any license has been lost or
destroyed, the license collector shall issue a
duplicate of such license to the licensee therein
named. A charge of one dollar shall be made for
each such duplicate license issued, which sum
shall be paid into the treasury of the city to the
credit of the general fund. (Ord. 6061 9 1 (part),
1980; Ord. 6040 0 5, 1967)
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