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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 - 2 - 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 - 3 - 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����