Inglewood Municipal Code § 8-105 Gross Revenue License Fees

In addition to the basic license fees prescribed by Section 8-96.4 and Section 8-104 of this Article, and in lieu of the gross receipts tax imposed by Article 2 of Chapter 8 of the Inglewood Municipal Code commencing with Section 8-23, there is hereby imposed a gross revenue license fee. Said fee shall apply to card club operations Only and shall be additional to and have no effect on the City's share of the pari-mutuel pool imposed by Article 9.5 of the Business and Professions Code commencing with Section 19610.

Should it be determined that Business and Professions Code Section 19610.3, or any section which replaces it, is the sole revenue-producing measure which can be applied to the business of the card club licensee, then all permits and licenses granted pursuant to this Article shall be deemed revoked and all card club operations shall cease.

The gross revenue license fee shall be payable monthly, based on the total monthly gross revenue of the card club so licensed, according to the following schedule:

Total Monthly Gross Revenue	Total Monthly Gross Revenue	Monthly License Fee
Less than $100,000	Less than $100,000	-0-
$100,000 but less than $500,000	$100,000 but less than $500,000	10% of excess over $100,000
$500,000 but less than $2,500,000	$500,000 but less than $2,500,000	$40,000 plus 11% of excess over $500,000
$2,500,000 but less than $5,000,000	$2,500,000 but less than $5,000,000	$260,000 plus 12% of excess of over $2,500,000
$5,000,000 but less than $7,500,000	$5,000,000 but less than $7,500,000	$560,000 plus 13% of excess over $5,000,000
$7,500,000 or more	$7,500,000 or more	$885,000 plus 14% of excess over $7,500,000

(a) Statement of Revenue. Each licensee shall file with the City on or before the fifteenth day of each calendar month a statement, under oath, showing the true and correct amount of gross revenue derived from the card club business, operated pursuant to licenses issued pursuant to this Article, for the operations of the preceding month. Such statement shall be accompanied by the payment of the correct amount of gross revenue license fee due and Owing in accordance with the provisions of Section 8-105. A certification shall be attached to the statement or included therein, which certification or declaration shall be substantially in the following form:

"I hereby declare under penalty of perjury that the foregoing is true and correct.

Licensee, Managing Partner, or Owner"

(Strike out the titles which are not applicable).

At the end of each fiscal year, the licensee shall employ at its expense a nationally recognized firm of certified public accountants to conduct an audit of licensee's financial records in accordance with generally accepted auditing standards. Such audit shall conclude with the expression of the auditor's opinion on the financial statements of the licensee's card club operations in accordance with generally accepted auditing principles. The auditor shall express a separate opinion on the licensee's gross revenues and related permit fees paid to the City for the period then ended. Also, the licensee shall provide the City with an annual update of the evaluation of its internal accounting and administrative controls as outlined in Section 8-96.3 of this Article. Such audit report shall be filed with the City Clerk no later than one hundred twenty days after the fiscal year end. In the event that such evaluation discloses material weaknesses or reportable conditions in the licensee's system of internal accounting and administrative controls, the licensee shall submit a program to the Administrative Officer within thirty days of such evaluation outlining licensee's program to correct such weaknesses or conditions; All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection.

(b) Any failure or refusal of any such licensee to make any statement as required within the time required. or to pay such sums due as gross revenue license fees when the same are due and payable in accordance with the provisions of this Article, shall be and constitute full and sufficient grounds for the revocation or suspension of the permits and licenses issued pursuant to this Article in the sole discretion of the City Council.

(Ord. 93-05 3-16-93; Ord. 97-19 9-2-97; Ord. 02-34 1126-02)

§ 8-105.1. Alternative Gross Revenue License Fees.¶

(1) As an alternative to paying the twenty-five thousand dollar ($25,000) license fee provided for in Section 8-96.4(c), and the license fee set forth in Section 8-105, licensee or lessor may elect to pay a license fee of three million twenty-five thousand dollars ($3,025,000). Said fee shall be nonrefundable regardless of the operational status of the card club. In the event licensee or lessor elects to pay the higher license fee referred to above, an alternative gross revenue license fee schedule shall apply for a period of seventy-two consecutive months after the card club begins operation. Licensee may elect any month after the card club opens as the starting month for use of this alternative license fee schedule.

(2) The alternative license fee schedule provided for in this Section shall be as follows:

Total Monthly Gross Revenue	Monthly License Fee
Less than $100,000	-0-
$100,000 but less than $500,000	4% of excess over $100,000
$500,000 but less than $2,500,000	$16,000 plus 9.5% of excess over $500,000
$2,500,000 but less than $5,000,000	$206,000 plus 11% of excess over $2,500,000
$5,000,000 but less than $7,500,000	$481,000 plus 12.5% of excess over $5,000,000
$7,500,000 or more	$793,500 plus 13.2% of excess over $7,500,000

(3) Upon completion of seventy-two months using the alternative license fee schedule provided for in subsection (2) above, then the licensee shall be eligible to use, for up to thirty-six consecutive months, the license fee schedule found in 8-105.1(3)(a) below.

(a) The new alternative schedule shall be as follows:

LICENSE FEE SCHEDULE "A"

Total Monthly Gross Revenue	Monthly License Fee
Less than $100,000	-0-
$100,000 but less than $500,000	4% of excess over $100,000
$500,000 but less than $2,500,000	$16,000 plus 9.5% of excess over $500,000
$2,500,000 but less than $5,000,000	$206,000 plus 12.5% of excess of over $2,500,000
$5,000,000 but less than $7,500,000	$518,500 plus 13% of excess over $5,000,000
$7,500,000 or more	$831,000 plus 13.5% of excess over $7,500,000

(b) In addition to such other requirements of this regulation, if City allows licensee to use LICENSE FEE SCHEDULE "A," licensee agrees, effective immediately, to comply with all of the following conditions:

Not to loan or advance any funds or assets, to partners, stockholders, directors, key management employees and/or their families or related or affiliated entities;
Not to commingle funds with partners, stockholders, directors, key management employees and/or their families or related or affiliated entities;
To design a recruitment and hiring plan with a goal of at least fifty percent of all new hires being Inglewood residents. In addition to the requirements set forth in subsection (5) below, licensee shall submit an annual report to the City Administrative Officer, or his designate, demonstrating their compliance with this plan. The plan is to be consistent with all applicable Federal, state and local laws;
To allocate at least twenty-five percent of the tax relief savings achieved by its use of Schedule "B," instead of its use of Schedule "A," to marketing and/or promotional activities. It is intended that licensee's overall marketing and promotional expenses will increase above that spent during the average recorded base period of January 1, 2002 through September 30 2002;
To include in its monthly reporting, pursuant to Section 8-105(a), its efforts to meet its requirements under items (3) and (4) above.

(c) In the event that licensee fails to comply with subsection (3)(b) above, the City Administrative Officer shall provide written notice of non-compliance to licensee. If licensee fails to comply within 30 days of the City Administrative Officer's written notice, then licensee will no longer be entitled to use the fee schedule found in 8-105.1(3)(a) (LICENSE FEE SCHEDULE "A").

(d) Upon completion of thirty-six months, or termination of its use by City, using the fee schedule provided for in 8-105.1(3)(a) (LICENSE FEE SCHEDULE "A"), then the licensee shall be permanently eligible to use the fee schedule provided for in 8-105.1(3)(e) (LICENSE FEE SCHEDULE "B") instead of the fee schedule provided for in Section 8-105.

(e) The new alternative schedule shall be as follows:

LICENSE FEE SCHEDULE "B"

Total Monthly Gross Revenue	Monthly License Fee
Less than $100,000	-0-
$100,000 but less than $500,000	10% of excess over $100,000
$500,000 but less than $2,500,000	$40,000 plus 11% of excess over $500,000
$2,500,000 but less than $5,000,000	$260,000 plus 12% of excess of over $2,500,000
$5,000,000 but less than $7,500,000	$560,000 plus 12.5% of excess over $5,000,000
$7,500,000 or more	$872,500 plus 13.2% of excess over $7,500,000

(4) Any license fee which a licensee may elect to pay under this Article may be paid by the lessor of a card club site in full satisfaction of any license fee otherwise required to be paid by the licensee under Sections 8-96.4(c), 8-105 or 8-105.1. Any amounts previously paid by a licensee under such sections shall be credited against the payment made by the lessor. In the event lessor shall have paid the alternative three million twenty-five thousand dollar ($3,025,000.00) license fee provided by this schedule, the licensee, as well as any subsequent licensee who leases the card club from lessor and the lessor or its affiliates if it shall thereafter operate the card club directly, shall be entitled to utilize the alternative license schedules provided in Section 8-105.1 and shall not be required to pay the license fees set forth in Section 8-96.4(c) or Section 8-105. The payment of the alternative three million twenty-five thousand dollar ($3,025,000.00) license fee by lessor shall not mean that lessor is an owner or operator of the card club for any purpose whatsoever.

(Ord. 93-05 3-16-93; Ord. 93-31 12-28-93; Ord. 94-06 3-22-94; Ord. 02-34 11-26-02)

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§ 8-105.2. Records, Reports and Supplemental Information.¶

(1) Each licensed establishment shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue subject to taxes and fees imposed by this Article. Such records shall include but not be limited to a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursements logs and journals, payroll journals, canceled checks and original paid invoices. Such general ledger shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Such records shall be maintained for at least three twelve-month fiscal years and shall be maintained on the premises of the licensed card club and made available for examination and copying by the City or its designee, except there is no obligation to retain bar and restaurant patron tickets.

(2) In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available.

(3) In addition to such other information and data required by this regulation, each licensed establishment shall maintain the following:

(a) If a partnership or corporation:

(1) A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each;

(2) A record of the withdrawals or distributions of funds or assets, to partners or stockholders;

(3) A record of salaries paid to each partner, stockholder and key management employees;

(4) A copy of the partnership or corporate agreement, certificate of limited partnership and accurate corporate stock transfer book, if applicable;

(5) Copies of any and all public filings required by the Securities Exchange Commission.

(b) If a sole proprietorship:

(1) A schedule showing the name and address of the proprietor and the amount and date of his original investment;

(2) A record of subsequent additions thereto and withdrawals therefrom.

(Ord. 93-05 3-16-93)

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§ 8-105.3. Access to Records and Facilities.¶

(1) Notwithstanding the audit requirements specified in Section 8-105 of this Article, the licensee shall allow the Administrative Officer or his designee unrestricted access to all books, records and facilities pertaining to the card club, including, but not limited to, cash-counting rooms. Any information obtained pursuant to this Section or any statement filed by the licensees or permittees shall be deemed confidential in character and shall not be subject to public inspection except in connection with the enforcement of the provisions of this Article. It shall be the duty of the Administrative Officer to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this Article or pursuant to the order of any court of competent jurisdiction.

(2) Any failure or refusal of any permittee or licensee to make and file any statement as required within the time required, or to permit inspection of such books, records, accounts and reports, of such permittee or licensee in accordance with the provisions of this Article shall be and constitute full and sufficient grounds for the revocation or suspension of the permit and licenses of any such permittee or licensee in the sole discretion of the City Council.

(Ord. 93-05 3-16-93; Ord. 97-19 9-2-97)

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