Ordinance - 1709ORDINANCE NO. 1709
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, AMENDING THE WEST COVINA MUNICIPAL CODE
RELATING TO THE PAYMENT OF BUSINESS LICENSE FEES
BASED ON GROSS RECEIPTS.
WHEREAS, clarification is needed to properly collect business
license fees from businesses that are based on gross receipts.
• NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES
ORDAIN AS FOLLOWS:
SECTION 1. Section 14-28 of the West Covina Municipal Code is
hereby amended to read as follows:
"Sec. 14-28. Licenses nontransferable.
No license granted or issued under the provisions of this
article shall be in any manner transferred or assigned,
nor shall it authorize any person other than those therein
mentioned or named to do business, without the written
consent of the license collector endorsed thereon; at
the time any such license is assigned or transferred, the
person applying for such transfer or assignment shall make
application for a license showing that he is continuing the
same business already licensed and paying a transfer fee as
established in the schedule of fees; provided, however, that,
a transfer or assignment of a license, the fee of which is
based on gross receipts, shall not be authorized."
SECTION 2. Section 14-68, Category Code A: A -II of the West Covina
Municipal Code is hereby amended to read as follows:
"Category Code A: A -II Office and.Commercial Rentals
Offices, stores, industrial plants or any building or
structure of any kind on land located in the city and
rented to a tenant for purposes other than dwelling,
sleeping or lodging. This includes the letting of every
kind and character, whether by an owner,, lessee or sub-
lessee, of such types of rentals. Where a land lease is
in effect for the purpose of effectuating the use of the
property for the purposes noted in this category, then
such rents from said land shall also be subject to the
business licensing provisions herein.
All rentals received by one (1) individual or entity can
be combined in one (1) license.
The fees prescribed in the schedule of fees for the first
unit of gross receipts shall be due and payable at the time
the application for the license is filed. Within thirty
(30) days after the end of the calendar year for which the,
license is issued or upon the transfer of ownership of the
property or at the time an application is filed for the
renewal of the license, whichever is earlier, the licensee
or applicant, as the case may be shall file a declaration
under penalty of perjury specifying the total amount of
gross receipts received during the license period. If any
additional taxes are due upon the basis of the gross
receipts from such properties, the additional tax,shall be
paid at the time the declaration is filed and before any
renewal license is issued. In addition, the license
collector may require the licensee to submit a copy of the
tax return filed with the California Franchise Tax Board
relative to all revenues received by the licensee within
the city during the license year or may require any other
substantiating information specified in Section 16002.5 of
the Business and Professions Code.
As used in this category "gross receipts" means.the total
amount charged or received during the license period
without any deduction whatsoever.
The city council may, by resolution, suspend all or any
portion of said tax imposed under Category A -II for a
period of time as it determines to be equitable in order
to adjust the impact of said tax. At the end of said period
of suspension, the tax shall automatically be reinstated
• in accordance with the amounts set forth in the schedule of
fees."
SECTION 3. Section 14-68, Category Code A: A -III of the West Covina
Municipal Code is hereby amended to read as follows:
"Category Code A: A -III Commercial Tenants Occupancy Tax
For the privilege of occupancy of offices, stores, industrial
plants, any building or structure of any kind on land located
in the city and rented to a tenant for purposes other than
dwelling, sleeping or lodging, an excise tax is hereby imposed
upon every tenant of such premises.
Where a land lease is in effect for the purpose of effectuating
the use of the property for the purposes noted in this category,
then such charges for said land shall also be subject to the
excise tax provided for in the schedule of fees.
The fees prescribed in the schedule of fees for the first
unit of gross receipts shall be due and payable at the time
the application for the license is filed. Within thirty
(30) days after the end of the calendar year for which the
license is issued or upon the transfer of ownership of the
property or at the time an application is filed for the
renewal of the license, whichever is earlier, the licensee
or applicant, as the case may be shall file a declaration
under penalty of perjury specifying the total amount of
gross receipts received during the license period. If any
additional taxes are due upon the basis of the gross
receipts from such property, the additional tax shall be
paid at the time the declaration is filed and before any
renewal license is issued. In addition, the license
collector may require the licensee to submit a copy of the
tax return filed with the California Franchise Tax Board
relative to all revenues received by the licensee within
the city during the license year or may require any other
substantiating information specified in section 16002.5
of the Business and Professions Code.
As used in this category "gross receipts" means the total
amount charged or received during the license period
without any deduction whatsoever.
Exempted under this Category A -III are tenants of an entity
subject to taxation under Category A -I or A -II.
The city council may, by resolution, suspend all or any:por.tion
of said tax imposed under Category A -III for a period of time
as it determines to be equitable in order to adjust the impact
of said tax. At the end of said period of suspension, the
tax shall automatically be reinstated in accordance with the
amounts set forth in the- sche.d,ul e.. of. fees.
• SECTION 4. The Mayor shall sign and the City Clerk shall certify
to the passage and adoption of this ordinance and shall cause the same to
be published in the manner prescribed by law.
PASSED AND APPROVED this 13th day of January 1986.
MAYOR
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ATTEST:
fw'-.41�0 AA,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF WEST COVINA )
I, HELENE M. MOONEY, City Clerk of the City of West Covina
do hereby certify that the foregoing Ordinance No. 1709 was regularly
introduced and placed upon its first reading at a regular meeting
of the City Council on the 16th day of December, 1985. That thereafter
said Ordinance was duly adopted and passed at a regular meeting of
the City Council on the 13th day of January, 1986, by the following
vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED AS TO FORM:
City Attorney
•
Bacon, Manners, Chappell, Shearer, Tennant
None
None
— A " & z
City Clerk
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C E R T I F I C A T I O N
I, JANET BERRY, Deputy City Clerk of the City of West Covina, State
• of California, do hereby certify that a true and accurate copy of
Ordinance No. 17 O q was published, pursuant to law, in the San
Gabriel Valley. Tribune, a newspaper of general circulation published
and circulated in the City of West Covina.
Janet
erry,
Deputy
C ty Clerk
City o
West
Covina,
California'
DATED: j����