Resolution No. 97611
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RESOLUTION NO. 9761
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ESTABLISHING THE RATES FOR BUSINESS LICENSE
TAXES AND RELATED FEES AND DEPOSITS PURSUANT TO
CHAPTER 5 OF THE CODE OF THE CITY OF VERNON,
CALIFORNIA, 1959 AND REPEALING ALL RESOLUTIONS OR
PARTS OF RESOLUTIONS IN CONFLICT THEREWITH
WHEREAS, the City Council has established business license
fees pursuant to Resolution No. 7036, adopted on October 21, 1997; and
WHEREAS, on January 27, 1998, the City Council of the City
of Vernon adopted Ordinance No. 1055, which reorganized the Vernon
City Code to establish general provisions relating to business license
taxes and enforcement of business license taxes under Chapter 5 of the
Vernon City Code; and
WHEREAS, since the procedural and enforcement provisions of
Ordinance No. 1055 did not impose, extend or increase any tax, voter
approval was not required; and
WHEREAS, Ordinance Nos: 1056 and 1057 relating to hufiinP��
license taxes were submitted to the voters of the City of Vernon at a
general municipal election held on April 14, 1998, at which time said
Ordinances received the required approval of at least two-thirds of
the voters of the City voting thereon; and
WHEREAS, Ordinance No. 1055 became effective on April 14,
1998, in accordance with Section 11 of said Ordinance which states that
the Ordinance shall be in full force and effect upon the date of
approval by the voters of Ordinance Nos. 1056 and 1057; and
WHEREAS, pursuant to Vernon City Code Section 5.31, the City
Council of the City of Vernon is authorized to revise the business
Ilicense taxes and related fees and deposit in accordance with
1 the procedure established therein and to set said rates by resolution;
2 and
3 WHEREAS, the City Clerk has prepared a written report setting
4 forth the adjustments to the maximum tax rates required by Vernon City
5 Code Section 5.31, and recommending the rates be revised so that
6 revenues from license taxes remain a significant portion of total
7 revenue available to meet expenditures, a copy of said report is
8 attached hereto as Exhibit A and incorporated by reference; and
9 WHEREAS, the fees established herein do not exceed the
10 reasonable cost of providing the services for which the fees are
11 charged; and
12 WHEREAS, the City Council of the City of Vernon desires to
13 approve the proposed revision to the business license taxes, related
14 fees, and deposits.
15 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
16 CITY OF VERNON AS FOLLOWS:
17 SECTION 1: The City Council of the City of Vernon hereby
18 finds and determines that the recitals contained hereinabove are true
19 and correct.
20 SECTION 2: Business License Fees (V.C.C. Sec. 5.22).
21 Every person doing business or engaged in any business,
22 profession, trade or occupation, or performing any act, or otherwise
23 dealing in or with goods, wares or merchandise, and not elsewhere
24 specifically licensed by other provisions of Chapter 5 of the Vernon
25 City Code, shall pay a license fee for each calendar year or portion
26 thereof for the privilege of doing business in the City of Vernon as
27 follows:
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FOR EVERY PERSON EMPLOYING:
0 or 1 employee (warehousing with
no employees in the City of Vernon
shall pay the minimum of $150.00
per year)
2 to 10 employees
11 to 25 employees
26 to 50 employees
51 to 75 employees
76 to 100 employees
101 to 150 employees
151 to 200 employees
201 to 250 employees
251 to 300 employees
301 to 400 employees
401 to 500 employees
501 to 600 employees
601 to 700 employees
701 to 800 employees
801 to 900 employees
901 to 1,000 employees
1,001 to 1,100 employees
1,101 to 1,200 employees
1,201 to 1,300 employees
1,301 to 1,400 employees
1,401 to 1,500 employees
1,501 to 1,600 employees
1,601 to 1, 700 employees
1,701 to 1,800 employees
1,801 to 1,900 employees
ANNUAL TAX RATE
$ 150.00
230.00
310.00
430.00
575.00
715.00
850.00
995.00
1,140.00
1,285.00
1,430.00
1,570.00
1,720.00
2,000.00
2,285.00
2,570.00
2,855.00
3,140.00
3,420.00
3,700.00
3,990.00
4,270.00
4,555.00
4,835.00
5,125.00
5,405.00
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FOR EVERY PERSON EMPLOYING: ANNUAL TAX RATE
1,901 and more employees $ 5,690.00
Business License Taxes (VCC §§5.23-5.29.
CATEGORY ANNUAL TAX RATE
Central Station Industrial $ 425.00
Protective Service (minimum tax)
§5.23 (a)
Auctioneer §5.24(a) 145.00/day
Still Photography §5.24(b ) 80.00/day
Taxicab Service §5.24(c) 215.00/year
Vehicle Towing Service §5.24(d) 215.00/year
Peddler §5.25(a) 265.00/year
Catering Vehicle -Cold Food 230.00/year
§5.25 (b) (1)
Catering Vehicle -Hot Food 280.00/year
§5.25 (b) (1) (i) and (ii)
Catering Vehicle -Daily §5.25(b)(2) 65.00/day
Peddler/Caterer-Transfer §5.25(d) 80.00/transfer
Peddler §5.25(e) 760.00/year
Fruit/Vegetable Vendor §5.25(f) 230.00/year
Junk/Scrap Metal Dealer §5.27(a) 1,710.00/year
Rag or Paper Dealer §5.27(b) 1,120.00/year
Secondhand Pipe Dealer §5.27(c) 1,710.00/year
Shows, Circuses, etc. §5.29(a) 215.00/day
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CATEGORY
Sideshow §5.29(b)
Structure Moving (Deposit) §5.64
Structure Moving Permit Fee §5.64
ANNUAL TAX RATE
$ 145.00/day
330.00/per
structure moved
20.00/per
structure moved
into, in, or through
the City
Business License Tax For Warehousing (VCC §5.28).
The minimum warehousing license tax shall be $240.00 per year and
the maximum warehousing license tax shall be $2,390.00 per year. If
the warehousing facility is 5,000 square feet or less, then the minimum
rate applies.
EVERY PERSON ENGAGED IN OR ANNUAL TAX
CARRYING ON THE BUSINESS OF
WAREHOUSING, THE TAX RATE PER
SQUARE FOOT SHALL BE:
First 5,000 sq. ft. $ 240.00
All square footage over 5,000 sq. $ 0.0420
ft.
EACH ADDITIONAL OFFSITE ANNUAL TAX
WAREHOUSING FACILITY, THE TAX RATE
PER SQUARE FOOT SHALL BE:
First 5,000 sq. ft. $ 240.00
All square footage over 5,000 sq. $ 0.0210
ft
Every person engaged in or carrying on the business of
warehousing in conjunction with a manufacturing business and where said
business has 100 employees or more at the same location, the business
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license fee will be based on the number of employees, and the
warehousing activity at the same location is exempt from the square
footage fee.
Special Taxes (VCC §5.35 - 5.39).
MINIMUM TAX
Hazardous waste treatment, storage $ 6,000.00/year
or disposal facilities (§5.35)
Hazardous waste treatment, storage $ 6,000.00/year
or disposal by or on behalf of
related corporate entities (§5.36)
Hazardous waste treatment, storage $ 0.35/gallon
or disposal by or on behalf of
related corporate entities (§5.36)
Waste to energy facilities (§5.37) $ 1.00/ton
per calendar year
Solid waste materials processing
and recycling facilities (§5.38)
Lead -acid battery recycling
facilities (§5.39)
$ 1.00/ton
per calendar year
$ 0.35/ton
based on gross
weight
SECTION 3: Central Station Industrial Protective Service
(V.C.C. Sec. 5.23).
Every person engaged in conducting a central station
protective signaling system for watchmen, fire alarm or supervisory
services shall pay:
(a) A minimum license tax pursuant to Section 2 herein each
year at the time of applying for or renewal of the license; and
(b) Two percent (2%) of the gross receipts of business
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arising from the licensee's operations conducted in the City of Vernon,
less the minimum previously paid.
SECTION 4: Penalty Charges (V.C.C. Sec. 5.30).
If license tax is not paid on or before the delinquency date,
a penalty of ten percent (100) of the amount due for the license tax
shall be imposed, and an additional penalty of ten percent (100) of the
original license tax shall be added at the close of business on the last
day of each calendar month thereafter. Every penalty shall become a
part of the license tax required. In no case shall the total penalty
for delinquent license taxes exceed fifty percent (500) of the original
(license tax for each year.
SECTION 5: Motion Picture Production (V.C.C. Sec. 5.65).
Every person conducting, managing or carrying on the business
of taking or producing one or more commercial motion pictures or
commercial television videotapes in the city shall pay the fees set
forth in the filming permit guidelines as approved by the City Council
for location and services established for each day of production in the
city.
SECTION 6: Junk, Secondhand Metal, Rags, Paper, Secondhand
Steel, Pipe and Fittings Dealers (V.C.C. Sec. 5.67).
The applicant for a junk, secondhand metal, secondhand rag,
paper, secondhand steel, pipe and fittings dealership shall file.with
the city clerk along with the application, a bond for $5,250.00
executed on behalf of the City of Vernon by a duly authorized surety
corporation subject to approval by the City Attorney.
SECTION 7: Amended or Duplicate Licenses (V.C.C. Sec. 5.6).
In addition to the fees set forth above, and in addition to
other taxes, fees, charges or deposits which are required by ordinances
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or resolutions of the City of Vernon or applicable State law, each
application for a duplicate business license shall be accompanied by
payment of a fee of $15.00.
SECTION 8: Additional Fees.
In addition to the foregoing, the licensee or permittee shall
pay all other necessary fees or deposits which may be required by other
ordinances or resolutions of the City of Vernon or applicable State
laws in effect.
SECTION 9: The fees provided for herein shall be effective
January 1, 2009, and all other resolutions in conflict with this
resolution are hereby repealed, specifically, but not limited to,
Resolution No. 7036.
SECTION 10: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 24th day of November, 2008.
AT EST:
M NUELA GIRON, Ci y Clerk
Name: Leanis C. Malburg
Title : Mayor / .Ua*Gr Pr-&--T efft
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9761, was
duly adopted by the City Council of the City of Vernon at regular
meeting of the City Council duly held on Monday, November 24, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
MANUELA GIRO ity Clerk
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EXHIBIT A
CITY CLERK'S DEPARTMENT
INTER -DEPARTMENT MEMORANDUM
DATE: November 19, 2008
TO: Honorable Mayor Leonis C. Malburg and Honorable City
Council Members
FRO Manuela Giron, City Clerk
RE: Determination of Business License Tax Rates Commencing
January 1, 2009
Gentlemen:
Business License Ordinance Nos. 1055, 1056 and 1057 became effective
on April 14, 1998, the date upon which they were approved by the
voters.
Sections 5.31 and 5.40 of the Vernon City Code provide a mechanism
by which the tax rates can be increased. The City Clerk needs to
submit a written report to the City Council setting forth the
allowable adjustments that may be made to the tax rates together
with a recommendation to revise the rates.
Attached hereto is the recommended business license tax increases.
Revenues from business license taxes remain a significant portion of
total revenue available to meet expenditures, and the recommended
business license tax rates do not exceed the maximum tax rates
authorized pursuant to Chapter 5 of the Vernon City Code.
The City Council needs to determine, by resolution, the adjusted
business license tax and fee schedule for implementation on
January 1, 2009.
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City of Vernon
Business License Fees
Calendar Year 2009
The recommended Rates for 2009, where changed, were calculated by multiplying the original
1997/1998 rates by 1.2, and then rounding to the nearest even $5 increment. Unchanged rates
and those that are stated as a percentage remain at the original level.
The Maximum Rates for 2009 were calculated by multiplying the original 1997/1998 rates by the
ratio of the March 2008 CPI divided by the March 1997 CPI. In actual numbers:
March 2008 CPI = 223.6 (from Bureau of Labor Statistics - CUURA421SAO)
March 1997 CPI = 159.8 (from Bureau of Labor Statistics - CUURA421 SAO)
Resulting Ratio = 1.399249061
Resulting 2009 Rates and Maximum Rates
Recommended
Manufacturing Employment
Original
Rate
2009 Rate
Maximum Rate
0 -1 Empl
$
125.00
$
150.00
$
174.91
2 -10 Empl
$
190.00
$
230.00
$
265.86
11 -25 Empl
$
260.00
$
310.00
$
363.80
26 -50 Empl
$
360.00
$
430.00
$
503.73
51 -75 Empl
$
480.00
$
575.00
$
671.64
76 -100 Empl
$
595.00
$
715.00
$
832.55
101 -150 Empl
$
710.00
$
850.00
$
993.47
151 -200 Empl
$
830.00
$
995.00
$
1,161.38
201 - 250 Empl
$
950.00
$
1,140.00
$
1,329.29
251 - 300 Empl
$
1,070.00
$
1,285.00
$
1,497.20
301 - 400 Empl
$
1,190.00
$
1,430.00
$
1,665.11
401 - 500 Empl
$
1,310.00
$
1,570.00
$
1,833.02
501 - 600 Empl
$
1,435.00
$
1,720.00
$
2,007.92
601 - 700 Empl
$
1,670.00
$
2,000.00
$
2,336.75
701 - 800 Empl
$
1,905.00
$
2,285.00
$
2,665.57
801 - 900 Empl
$
2,140.00
$
2,570.00
$
2,994.39
901 - 1000 Empl
$
2,380.00
$
2,855.00
$
3,330.21
1001 - 1100 Empl
$
2,615.00
$
3,140.00
$
3,659.04
1101 - 1200 Empl
$
2,850.00
$
3,420.00
$
3,987.86
1201 - 1300 Empl
$
3,085.00
$
3,700.00
$
4,316.68
1301 - 1400 Empl
$
3,325.00
$
3,990.00
$
4,652.50
1401 - 1500 Empl
$
3,560.00
$
4,270.00
$
4,981.33
1501 - 1600 Empl
$
3,795.00
$
4,555.00
$
5,310.15
1601 - 1700 Empl
$
4,030.00
$
4,835.00
$
5,638.97
1701 - 1800 Empl
$
4,270.00
$
5,125.00
$
5,974.79
1801 - 1900 Empl
$
4,505.00
$
5,405.00
$
6,303.62
1901 or more Empl
$
4,740.00
$
5,690.00
$
6,632.44
Other Business Activities
Original Rate
2009 Rate
Maximum Rate
Central Station Protective Service
$
355.00
$
425.00
$
496.73
Auctioneer
$
120.00
$
145.00
$
167.91
City of Vernon
Business License Fees
Calendar Year 2009
Still Photography
$
65.00
$
80.00
$
90.95
Taxicab Service
$
180.00
$
215.00
$
251.86
Vehicle Towing Service
$
180.00
$
215.00
$
251.86
Peddler
$
220.00
$
265.00
$
307.83
Catering Vehicle - Cold
$
190.00
$
230.00
$
265.86
Catering Vehicle - Hot
$
235.00
$
280.00
$
328.82
Catering Vehicle - Daily
$
55.00
$
65.00
$
76.96
Peddler / Caterer - Transfer
$
65.00
$
80.00
$
90.95
Peddler (5.25 (e))
$
635.00
$
760.00
$
888.52
Fruit / Vegetable Vendor
$
190.00
$
230.00
$
265.86
Junk / Scrap Metal Dealer
$
1,425.00
$
1,710.00
$
1,993.93
Rag or Paper Dealer
$
935.00
$
1,120.00
$
1,308.30
Secondhand Pipe Dealer
$
1,425.00
$
1,710.00
$
1,993.93
Shows, Circuses, etc.
$
180.00
$
215.00
$
251.86
Sideshow
$
120.00
$
145.00
$
167.91
Structure Moving (Deposit)
$
275.00
$
330.00
$
384.79
Structure Moving Permit Fee
$
15.00
$
20.00
$
20.99
Warehousing
Original
Rate
2009 Rate
Maximum Rate
Primary Warehouse - First 5,000 sq ft
$
200.00
$
240.00
$
279.85
Per sq ft over 5,000 sq ft
$
0.0350
$
0.0420
$
0.0490
Maximum Primary Warehouse Tax
$
1,990.0.0
$
2,390.00
$
2,784.51
Secondary Warehouse - First 5,000 sq ft $
200.00
$
240.00
$
279.85
Per sq ft over 5,000 sq ft
$
0.0175
$
0.0210
$
0.0245
Maximum Secondary Warehouse Tax
$
1,990.00
$
2,390.00
$
2,784.51
Special Taxes
Original
Rate
2009 Rate
Maximum Rate
Hazardous Waste TSDF - Minimum
$
5,000.00
$
6,000.00
$
6,996.25
Hazardous Waste TSD Related - Min
$
5,000.00
$
6,000.00
$
6,996.25
Hazardous Waste TSD Related - $/gal
$
0.30
$
0.35
$
0.42
Waste to Energy Facility - $/ton
$
0.85
$
1.00
$
1.19
Solid Waste Recycling - $/ton
$
0.85
$
1.00
$
1.19
Lead Acid Battery Recycling - $/ton
$
0.30
$
0.35
$
0.42
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: December 8, 2008
TO: Rory Burnett, Finance Director
Sharon Duckworth, City Treasurer
Masami Higa, Internal Control Manager/Controller
Joaquin Leon, Assistant Finance Director
Martha Valenzuela, Director of Personnel/Purchasing Agent
FROM: Nelly Giron, City Clerk
RE: Resolution No. 9761 - A Resolution of the City Council of
the City of Vernon Establishing the Rates for Business
License Taxes and Related Fees and Deposits Pursuant to
Chapter 5 of the Code of the City of Vernon, California,
1959 and Repealing All Resolutions or Parts of Resolutions
in Conflict Therewith
Transmitted herewith is a copy of Resolution No. 9761 referenced
above, which was approved by City Council on November 24, 2008.
Thank you.
NG:dr
c: Resolution No. 9761