Chico Municipal Code Ch. 3.34 Parking and Business Improvement Area - Additional License Tax

For the purposes of Section 3.34.060, the following definitions shall apply:

A. “Retail” businesses include all businesses not specifically included within other definitions set out in this section and which at least in part sell at retail in the regular course of business. The fact that a substantial part or most of its business consists of other than retail sales does not exclude the business from this classification. To “sell at retail,” as used in the definition of this classification means the making of a “retail sale” or a “sale at retail” as those terms are defined in the Sales and Use Tax Law of the state of California.

B. “Bars” shall mean any place of business that maintains and sells or dispenses any type of alcoholic beverage at “on-sale,” as that term is defined by the Alcoholic Beverage Control Act of the state of California.

C. “Restaurants” shall mean any establishment where food is prepared for human consumption, either on or off the premises.

D. “Theaters” shall mean any place where a theater business is conducted containing a permanent stage or in which motion pictures are exhibited and other exhibitions are presented where an admission charge is made.

E. “Amusements” shall mean any type of business conducted for amusement purposes for which an admission or other charge is made for the purpose of enjoying such amusement. This shall be deemed to include operators or lessees of amusement-type vending machines of all kinds.

F. “Professional and services” shall be deemed to include, but not necessarily be limited to the following: persons or businesses engaging in a pursuit or activity professionally; news and advertising media; printers; photographers, but not sellers of photo supplies; real estate brokers; builders; service stations; repairing and servicing; renting and leasing; laboratories, including dental and optical; hearing aid services; utilities; artists and designers; and vending machine businesses.

G. “Financial, lending and securities institutions” shall be deemed to include all financial, lending or securities institutions that are not exempt by law from paying a business license tax.

H. “Hotels and motels” shall mean the types of businesses devoted to human lodging on a transient basis, as distinguished from apartment houses, roominghouses and other types of concerns that provide human lodging on a more permanent basis.

I. “Auto dealers” shall mean businesses dealing in the sale of motor vehicles, both new and used, and shall include dealers in trucks, farm implements, and all other types of motorized equipment that is moved by motor power on wheels or tracks; but does not include sale of motor vehicle parts when not accompanied by the sale of motor vehicles by the same business.

J. The “number of employees” referred to in Table I of Section 3.34.060 shall mean all persons engaged in the operation or conduct of any business whether as owner, any member of the owner’s family, partner, agent, manager, solicitor, or salesperson, regardless of basis of compensation, and any and all other persons employed or working in such business, including but not limited to students and apprentices working in connection with instruction in any business, for which service the owner, operator, or management receives compensation or a thing of value.

In determining the number of employees, the number of hours worked by all employees, the number of hours worked by all employees during the entire preceding fiscal year shall be added together and the sum thereof divided by 2,000. Any remainder or fraction shall not be considered. However, any amount below the first 2,000 hours shall be considered as 2,000 hours, and, in such event, the business in question shall pay a tax using one employee as a basis for computing the tax due.

Any employee who is paid for working away from the business location for more than 50% of the time for which the employee is paid during a fiscal year shall be deemed an exempt employee, and the employee’s time shall not be included in the computation above, except that a business in which all employees qualify for the exemption shall pay a tax using one employee as a basis for computing the tax due.

(Ord. 1125 §8, Ord. 1189 §1, Ord. 2268)

There is hereby established in the city, a downtown parking and business improvement area, pursuant to the provisions of the Parking and Business Improvement Area Law of 1965, as set forth in part 5, division 18 of the Streets and Highways Code of the state of California (sections 36000, et seq.).

(Ord. 1125 §1)

This chapter is also adopted pursuant to Resolution No. 76 74-75, entitled “Resolution of Intention to Establish the ‘Downtown Parking and Business ImprovementArea’ in the City of Chico,” dated January 10, 1975.

(Ord. 1125 §2)

The aforesaid resolution was heard in the council chambers of the Municipal Building, Fifth and Main Streets, Chico, California, at the hour of 7:30 p.m. on February 4, 1975, and said hearing was at said time continued to 7:30 p.m. on February 18, 1975, at which time said resolution was adopted.

(Ord. 1125 §3)

The description of the boundaries of said area so established by said resolution and by this chapter is as follows:

“DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA

“Beginning at intersection of the easterly line of the Esplanade and the centerline of

Big Chico Creek; thence northerly along the easterly line of the Esplanade to the southerly line of Memorial Way; thence easterly along the southerly line of Memorial Way to the westerly line of Camellia Way and its prolongation to the northerly prolongation of the north-south interior lot lines between Flume Street and Orient Street; thence southerly along the north-south interior lot lines and their prolongation to the southerly line of an alley, said alley lying between East 9th Street and Humboldt Avenue; thence easterly along the southerly line of said alley, 66.0 feet; thence southerly and parallel to Orient Street to the northerly line of Humboldt Avenue; thence westerly along the northerly line of Humboldt Avenue to the north-south interior lot line between Flume Street and Orient Street; thence southerly along the southerly prolongation of said north- south interior lot line to the centerline of Little Chico Creek; thence westerly along the centerline of Little Chico Creek to its intersection with the southerly prolongation of the easterly line of Normal Avenue; thence northerly along the easterly line of Normal Avenue to the northerly line of West 2nd Street; thence easterly along the northerly line of West 2nd Street, 187.8 feet; thence northerly parallel to Salem Street, 132.0 feet; thence easterly parallel to West 2nd Street, 76.2 feet to the westerly line of Salem Street; thence northerly along the westerly line of Salem Street to the southerly line of West 1st Street; thence easterly along the southerly line of West 1st Street to the westerly line of Broadway; thence northerly along the prolongation of the westerly line of Broadway to the westerly line of Shasta Way; thence northerly along the westerly line of Shasta Way to the centerline of Big Chico Creek; thence easterly along the centerline of Big Chico Creek to the point of the beginning.

“The above described improvement area is subdivided into two (2) zones, Zone A and Zone B, described as follows:

“ZONE A

“Beginning at the intersection of the easterly line of Main Street and the centerline of Big Chico Creek; thence southerly along the easterly line of Main Street to the southerly line of East 1st Street; thence easterly along the southerly lie of East 1st Street to the westerly line of Wall Street; thence southerly along the westerly line of Wall Street to the northerly line of East 5th Street; thence westerly along the northerly line of East and West 5th Street to the easterly line of Salem Street; thence northerly along the easterly line of Salem Street to the southerly line of West 1st Street; thence easterly along the southerly line of West 1st Street to the westerly line of Broadway; thence northerly along the prolongation of the westerly line of Broadway to the westerly line of Shasta Way; thence northerly along the westerly line of Shasta Way to the centerline of Big Chico Creek; thence easterly along the centerline of Big Chico Creek to the point of beginning.

“ZONE B

“All the previously described improvement area excluding the above-described Zone A.”

(Ord. 1125 §4)

All businesses, trades, or professions now subject to business license tax under the provisions of Chapter 3.32, situate in either of the zones as described in Section 3.34.050, shall, commencing July 1, 1975, be subject to an additional business license tax in an amount or amounts determined pursuant to the tables set forth below, and the following formula:

Additional business license tax = Basic tax x Benefit zone Factor

TABLE I

TABLE II

(Ord. 1125 §5)

No person is subject to the tax imposed herein by reason of conducting a residential use upon any property within either of the zones described in Section 3.34.050.

(Ord. 1125 §6)

Any new business established in the area of this district shall be exempt from any tax under the provisions of this chapter for the license year during which it commenced business. This shall not be deemed to apply to an existing business that has changed ownership or location within the district.

(Ord. 1125 §7)

The purposes for which the funds raised by said tax shall be devoted to the statutory purposes set forth in section 36000 of the Streets and Highways Code of the state of California, or one or more of said purposes, which are as follows:

A. The acquisition, construction or maintenance of parking facilities for the benefit of the area;

B. Decoration of any public place in the area;

C Promotion of public events which are to take place on or in public places in the areas;

D. Furnishing of music in any public place in the area;

E. The general promotion of retail trade activities in the area.

(Ord. 1125 §9)

The tax provided by this chapter shall be collected at the same time and in the same manner as is provided in this code for the collection of business license taxes.

(Ord. 1125 §10)

The council may contract from time to time with a nonprofit, tax-exempt corporation, the purpose of which, as specified in the purpose clause of its articles, shall be to carry out the purposes for which this tax is levied and as provided in this chapter. In the event such agreement is made, it shall provide that the corporation shall present a budget of proposed expenditures and purposes to the city manager, for investigation and report to the council upon the advisability and feasibility of the proposed expenditures and improvements, and upon approval or modification of approval of the budget requests, the council shall allocate and direct payment of such amounts as it shall determine to the contracting agency by the city administrative services department.

(Ord. 1125 §11, Ord. 2364 §64, Ord. 2439 §25)

In the event the city contracts with a corporation to administer the funds collected under this chapter, any funds collected by voluntary contribution by such corporation from whatever source, shall not be subject to an accounting to city, provided, however, that in any budget presented to the city for the approval of the project, said corporation shall in such budget set out the amount of funds proposed to be used, derived from any source, i.e., tax sources, license tax sources, or voluntary contributions, in order that the city council may appropriately determine the feasibility of the project and the ability of the corporation to finance same.

(Ord. 1125 §12)

The administrative services director shall make available to any contracting corporation with city, a list or record of delinquent assessments made under this chapter. This list shall be furnished at least annually, but not more often than quarterly, and in the latter case, only upon request of the contracting corporation.

(Ord. 1125 §13; Ord. 2113 §1, Ord. 2439 §26)

A. The city may at any time, pursuant to the provisions of section 36080 of the Streets and Highways Code, disestablish the area hereby created. This procedure may be initiated by the council upon its own motion, or upon petition to the council for disestablishment. A petition shall be signed by licensed taxpayers in the area who, (1) in the aggregate, pay more than 50% of the total license taxes paid within the area and assessed in the fiscal year in which the petition is filed, and (2) have signed the same within a 30-day period, and in this connection, the date that each signer signed the petition shall be set opposite the signer’s name.

B. The finance director shall then compute the total amount of taxes paid by each of said signers, and if the total so paid exceeds 50% of the total tax levied and paid under this chapter, then the council shall adopt and publish a resolution of intention mentioned in the aforesaid section 36080.

C. Neither the initiation of the procedure by the council upon its own motion, nor pursuant to the petition herein provided for, shall limit the council’s discretion with respect to the adoption or nonadoption of a disestablishment ordinance.

(Ord. 1125 §14, Ord. 2113 §1, Ord. 2268)