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HomeMy WebLinkAbout2001-09-18; City Council; 16364; Business License Tax RefundsCITY OF CARLSBAD -AGENDA BILL \ a w T’TLE: REFUND TO MALLINCKRODT, INCORPORATED DEPT HDm + / // n AB# 1 MTG. 09/l 8/01 I AND CARLSBAD MlTStiBlSHl FOR DEPT. FIN BUSINESS LICENSE TAXES RECOMMENDED ACTION: Adopt Resolution No. dOa \- W suthorizing a refund to Mallinckrodt, Incorporated of $98595.61 in business license tax. Adopt Resolution No. ~t-~~~ authorizing a refund to Carlsbad Mitsubishi of $2,409.16 in business license tax. ITEM EXPLANATION: Mallinckrodt. Incorporated Mallinckrodt, Incorporated recently paid their business license tax for 2001. As part of renewing their business license, they were required to submit documentation to support their gross receipts for their latest fiscal year. During this verification process, it was determined that Mallinckrodt, Incorporated had overpaid their business license tax for the past three (3) years by $98595.61. The excessive refund amount is due to the fact that Mallinckrodt, Incorporated operates three (3) separate facilities, including one (1) facility in the City of Carlsbad. During the past three (3) years, Mallinckrodt, Incorporated inadvertently reported gross receipts to the City of Carlsbad for all three (3) facilities. The company has subsequently asked for a refund of the overpaid taxes. The Finance Department has reviewed the tax returns for Mallinckrodt, Incorporated for the past three years and agrees that the amount of the refund should be !$98,595.61. Carlsbad Mitsubishi Carlsbad Mitsubishi sold their business to Bob Baker Mitsubishi on April 1, 2001. Carlsbad Mitsubishi had renewed their business license in November 2000, and paid its business license tax for the full year. On April 1, 2001, the newly formed company, Bob Baker Mitsubishi applied for a new business license, and subsequently paid their business license tax for the entire year. Carlsbad Mitsubishi has requested a refund for the period of time after they dissolved their business. The Finance Department 1) confirmed the date Carlsbad Mitsubishi ceased conducting business in the City; 2) audited the refund request by reviewing the financial statements of Carlsbad Mitsubishi for the period of the business license tax payment and confirming the refund amount; and 3) verified that the new company (Bob Baker Mitsubishi) had applied and paid for a business license with the City. Therefore, staff is recommending approval of a refund to Carlsbad Mitsubishi for $2,409.16. Summarv Section 5.04.130 of the Carlsbad Municipal Code requires Council approval of any refund in excess of $500. Therefore, staff is recommending approval of a refund to Mallinckrodt Incorporated for $98,595.61 and a refund to Carlsbad Mitsubishi for $2,409.16. Page 2 of Agenda Bill # 16 ,’ 3 6 l-/ FISCAL IMPACT: The refund of $98,595.61 to Mallinckrodt Incorporated was accrued for in fiscal year 2000-2001. Therefore, there is no fiscal impact in fiscal year 2001-02. The refund of $2,409.16 to Carlsbad Mitsubishi will result in a reduction in business license revenue for fiscal year 2001-2002. EXHIBIT: 1. Resolution No. a0 I- %3, Refunding Business Tax Payment to Mallinckrodt, Incorporated. 2. Resolution No. s(% 1 -a?$ Refunding Business Tax Payment to Carlsbad Mitsubishi. 2 EXHIBIT 1 RESOLUTION NO. 2001-293 5 6 7 8 9 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REFUNDING BUSINESS TAX PAYMENT TO MALLINCKRODT, INCORPORATED WHEREAS, Mallinckrodt, Incorporated renewed their business license with the City of Carlsbad in May of 2001; and WHEREAS, upon reviewing their verification documentation it was discovered that Mallinckrodt, Incorporated had overpaid their business license taxes for the past three years; and WHEREAS, the Finance Department reviewed the tax returns of Mallinckrodt, 11 Incorporated for the past three years and verified the refund amount. 12 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: 13 SECTION 1. That the above recitals are all true and correct. 14 SECTION 2. That a refund of business license tax of $98,595.61 to Mallinckrodt, 15 Incorporated is authorized. 16 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on 17 18 the 18th day of September , 2001, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, and Hall. 19 20 21 NOES: None. ABSENT: Council Member Nyg 22 CLAUDE A. LEWIS, Mayor 23 ATTEST: 24 25 26 c. 1 ICL IT& i 7.. /p;’ /./(A WOOD, City Clerk 27 / 28 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 2 RESOLUTION NO. 2001-294 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REFUNDING BUSINESS TAX PAYMENT TO CARLSBAD MITSUBISHI WHEREAS, Carisbad Mitsubishi sold their business on April 1, 2001 and the company has requested a refund for the period of time after they stopped conducting business in the City; and WHEREAS, upon the sale of.Carlsbad Mitsubishi, a new company was formed under the name of Bob Baker Mitsubishi; and WHEREAS, the Finance Department confirmed the date Carlsbad Mitsubishi ceased doing business in the City, audited and verified the refund amount and verified that the newly formed company (Bob Baker Mitsubishi) applied and paid for a business license. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That a refund of business license tax of $2,409.16 to Carlsbad Mitsubishi is authorized. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 18th day of September , 2001, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, a&d Hall. NOES: None. ABSENT: Council Member N CLAUDE? A. LEWIS, Mayor ATTEST: ” ” E WOOD, City Clerk