Compton Municipal Code § 9-3 Additional Tax for Business Licenses for Businesses Conducting Their Operations…

[Added by Ord. #1468, § 6201.1]

As used in this section:

ADDITIONAL TAX FOR A BUSINESS LICENSE

Shall mean the tax established by this Chapter initially, or as may be changed in accordance with the procedures hereinafter prescribed for businesses conducting their activities within a Business Promotion District, in addition to the regular tax imposed upon various businesses generally not in such Business Promotion District.

BUSINESS PROMOTION DISTRICT

Shall mean an area of the City which has been designated a Business Promotion District pursuant to the procedures set forth in this Chapter.

BUSINESSES

Shall mean all types of businesses.

[Added by Ord. #1468, § 6201.2; Ord. #1730, § 1]

a. Whenever this section provides for a hearing and notice therefor, such notice shall be given as follows:

1. One publication in a newspaper shall be published and circulated in the City; and

2. Mailing of such notices, postage prepaid, in a sealed envelope, by the United States mails, addressed to all businesses which conduct activities within any proposed or established Business Promotion District, as shown upon the active business licenses on file with the License Collector, and to all business property owners in such district as shown upon the last equalized assessment roll of the county at the addresses shown on such roll.

3. Both publication and mailing of notices shall be completed at least 10 days prior to the holding of any hearing required by this Chapter, and such notices shall contain the designation of the time and place of the hearing and a statement describing the subject matter of such hearing.

b. Whenever a hearing is held under this Chapter, the Council shall hear all protests and receive evidence for or against the proposed action: the Council shall also rule upon all protests, which determination shall be final; and the Council may continue the hearing from time to time.

[Added by Ord. #1468, § 6201.3]

The purpose and intent of this section is to impose a tax upon the businesses in a Business Promotion District which tax is greater than the general business license tax in the City outside of such a district, and to use the proceeds from the additional tax revenue for the purpose of promoting events which take place in such district which are of a public nature and of general interest and concern to the community and the businesses in the district, and to promote and increase business generally in the Business Promotion District. Such activities may include, but shall not be limited to, the following:

a. Decoration of any public place in the district;

b. Promotion of public events which are to take place on or in public places in such district;

c. Furnishing of music in any public place in the district;

d. The acquisition, construction, or maintenance of public improvements, including parking lots benefiting the district; and

e. The general advertising of the district and development of means to increase business activity in the district.

[Added by Ord. #1468, § 6201.4]

The Council may establish a Business Promotion District by the following procedure:

a. Adoption of a resolution of intention to establish a Business Promotion District which shall contain the following information:

1. A description of the proposed boundaries of such district;

2. The time and place when a hearing shall be held by the Council to determine whether or not to adopt a resolution to establish such district;

3. The uses to which the additional revenue derived from the additional tax for a business license will be put, which shall be the same as those provided for by this section;

4. That the establishment of a Business Promotion district shall cause an additional tax for business licenses for those businesses conducting their activities in such district, and that such increase shall be in accordance with the schedule provided by this section, which schedule shall be set forth at length in the resolution; and

5. That any interested person may file a written protest prior to the hearing and may also appear at the hearing and present evidence; provided, however, no person may attack the proceeding on any ground not stated in a written protest filed prior to the time of hearing.

b. Notice of the hearing provided for by the resolution of intention shall be published and mailed in accordance with Subsection 9-3.2, except, however, such notice shall consist of a complete copy of the resolution of intention to establish a Business Promotion District.

c. The hearing specified in the resolution of intention shall be held prior to the adoption of a resolution establishing a Business Promotion District. Such hearing shall be held in accordance with Subsection 9-3.2.

d. If it is determined by the Council after the hearing that such a district should be created, the Council may approve such a district by adopting a resolution establishing the district. This resolution shall contain the following information:

1. The number, date, and title of the resolution of intention pursuant to which it was adopted;

2. The time and place the hearing was held concerning the formation of such district;

3. The description of the boundaries of such district;

4. A statement that the businesses in the district created by the resolution shall be subject to the provisions of the additional tax provided by this section; and

5. A statement that a Business Promotion District has been created pursuant to the provisions of this section.

[Added by Ord. #1468, § 6201.5]

There is hereby imposed the following tax for a business license for all businesses conducting their activities in a Business Promotion District, which tax is in addition to the regular tax imposed upon various businesses generally not in such Business Promotion District:

a. All businesses in such district shall be subject to this additional taxation if they are subject to taxation by the City under its business license tax regulations.

b. The tax imposed by this Chapter as additional tax for a business license shall be based upon the following schedule:

1. Class I Businesses:

(a) Retail sales where 75% of the gross receipts are derived from such sales;

(b) Secondhand dealers; and

(c) Stock and bond brokers, real estate and personal loan agents, and savings and loan associations.

2. Class II Businesses:

(a) Advertising agencies;

(b) Apartments, motels, and rooming houses with more than two rentals, whether located in one or various locations;

(c) Auto and appliance repairs;

(d) Barber shops;

(e) Beauty shops;

(f) Cafes and restaurants;

(g) Child care;

(h) Contractors;

(i) Equipment rental, including auto and truck rentals;

(j) Gardening;

(k) Hotels;

(l) Manufacturing and processing (including product research and development, newspaper and job printing, and wholesaling);

(m) Massage parlors;

(n) Medical and dental laboratories;

(o) Newspaper and magazine agencies;

(p) Photo studios;

(q) Physical culture studios and gymnasiums;

(r) Public utilities, including gas, electric, telegraph, and telephone;

(s) Trading stamp agencies;

(t) Trailer parks;

(u) Training schools; and

(v) Undertaking establishments. Businesses in this class shall be taxed as an additional tax for a business license twice the ordinary business license tax, not to exceed 3/10% of their gross annual receipts.

3. Class III Businesses:

(a) Attorneys at law;

(b) Accountants, including public and certified public;

(c) Chiropractors;

(d) Electronic data processing centers;

(e) Engineers;

(f) Medical and dental doctors, including osteopaths;

(g) Psychologists;

(h) Public bookkeeping;

(i) Real estate brokers; and

(j) Veterinarians. Businesses in this class shall be taxed as an additional tax for a business license twice the ordinary business license tax, not to exceed 3/10% of their gross annual receipts.

4. Class IV Businesses:

This class shall include all businesses not listed as Classes I, II, or III above. Businesses in Class IV shall be taxes as an additional tax for a business license one times the ordinary business license.

c. New businesses in such district shall be exempt from any assessment under this section for three months after opening their doors for business and will then be assessed in accordance with their classification, with the amount due to be paid on a pro rata basis, depending upon the expired portion of the current business license tax period for which assessments are due and payable.

d. Any business, person, or institution located within the Business Promotion District which is exempt from the payment of a business license tax by the State Constitution shall not be taxed under this section but may make voluntary contributions to the Business Promotion District. Such contributions shall be used for the purposes provided by this section.

[Added by Ord. #1468, § 6201.6]

The collection of the additional tax for a business license for any Business Promotion District shall be made at the same time and in the same manner as any other business license tax. In the event a Business Promotion District shall be established and become effective on a date other than the date when the regular tax upon various businesses becomes due and payable, then in that event additional taxes for business licenses provided for hereunder will be assessed and become due and payable as of said effective date of the establishment of such Business Promotion District with the amount due to be paid on a pro rata basis depending upon the expired portion of the current business license tax period for which assessments are due and payable.

[Added by Ord. #1468, § 6201.7]

Changes may be made in the boundaries of any Business Promotion District by resolution of the Council; however, no changes shall be made unless and until a hearing is held and a notice thereof is given in accordance with Subsection 9-3.2. Such notice shall contain the time and place when the hearing shall be held and a description of the proposed change of the district boundary.

[Added by Ord. #1468, § 6201.8]

Changes may be made in the rate of additional tax for a business license by ordinance of the Council; however, no changes shall be made unless and until a hearing is held and notice thereof is given in accordance with Subsection 9-3.2. Such notice shall contain the time and place where the hearing shall be held and a description of the proposed change in the rate of additional tax for a business license: