Del Mar Municipal Code Ch. 5.16 License Tax Based Upon Business Volume

This Chapter is intended to set out the procedures to be used when the basis for the license tax is the volume of business activity occur-ring after the issuance of the license.

(Ord. No. 388)

Where the amount of the license tax is based on volume of business activity, the applicant shall include with the application an estimate of such basis for the period covered by the license for which the application is made.

The license tax collector shall determine the amount of estimated tax to be paid and may base that determination upon the volume of business accruing during the period preceding the issuance of the license for which the application is made.

A. At the end of the license period or upon the sooner cessation of business within the City, the licensee shall file with the license tax collector a declaration under oath stating the actual basis for the tax occurring during the license term.

B. The license tax collector shall determine the license tax then owing.

C. If the estimated tax paid is less than the license tax determined, the deficiency shall be immediately due and payable from the licensee. If the estimated tax paid is more than the license tax determined, the licensee may request a cash refund or an adjustment of the estimated license tax due for a renewal.

D. In the event that the actual volume exceeds the applicant's estimate by more than 30 percent, the licensee shall pay an administrative penalty fixed by resolution of the City Council.