Monrovia Municipal Code Ch. 5.12 License Tax Schedules

(A) Every person engaged in business in the city, whether or not at a fixed place of business within the city, shall pay a business license tax in an amount as established by resolution of the City Council. A business license tax shall be due for each of the categories of business set forth in this section.

(B) In no event shall the total annual business license tax payable by any single business in any single year exceed 20 times the lump sum tax component of the basic business license tax as established by resolution of the City Council.

(C) Any business with employees who do not work entirely within the city on particular premises shall pay a rate of tax computed on the monthly average of the number of employees who perform work within the city, it being intended that such apportionment bears a fair relationship to the proportion of the taxing activity actually taking place within the city.

(`83 Code, § 5.12.010) (Ord. 85-28 § 3, 1985; Ord. 87-23 § 4, 1987; Ord. 91-22 § 1, 1991; Ord. 93-21 §§ 4, 5, 1993; Ord. 2015-07 §§ 3, 4, 2015)

All business license tax amounts shall be annually adjusted in accordance with the formula set forth in this section.

(A) (1) In May of each year, commencing in 1994, the Finance Department shall determine the April cost- of-living standard as indicated by the Consumer Price Index as prepared by the United States Department of Labor, Bureau of Labor Standards, for the “All Urban Consumers” category of the Los Angeles-Anaheim-Riverside metropolitan area. The index base year to be used shall be 1993 = 442.8 or subsequent indices as may be adopted by the City Council.

(2) The index level for April shall be compared with the index level for April of the preceding year. The percentage increase or decrease shall be applied to all of the dollar amounts contained in the current business license tax resolution adopted by the City Council. The base level for business license taxes shall be as established by Resolution No. 93-52. These percentage increases shall be applied as set forth in division (D) of this section.

(B) The annual adjustment shall not become effective unless specifically adopted by resolution of the City Council. The City Council may modify any tax calculated pursuant to division (A) of this section as the Council may deem appropriate, provided however, that the increase for any single year shall not exceed the limitation set forth in division (C) of this section.

(C) Regardless of the increase in the Consumer Price Index, no basic business license tax increase shall exceed 5% in any single year. There shall be no limit on the percentage of decrease.

(D) Exact dollar amounts determined pursuant to this section shall be used from year to year to calculate business license taxes adjusted for changes in the cost-of-living standard. The tax rate to be charged each business, occupation, and profession shall be the calculated tax rounded downward to the nearest integral dollar, and shall be the rate in effect for the following fiscal year.

(`83 Code, § 5.12.020) (Ord. 93-21 § 6, 1993)

The business license taxes imposed upon businesses, occupations and professions set forth in § 5.12.010 shall be the only business license tax applicable to said businesses, occupations and professions.

(`83 Code, § 5.12.030)

(A) Every individual or firm whose business is limited exclusively to renting, leasing or operating coin- operated vending machines shall pay a tax of 0.006% based upon the entire gross receipts which are directly attributable to the business activities conducted within the city, and no minimum license tax shall be imposed upon any business location, nor shall such license tax be measured by the number of business locations or machines of the taxpayer within the city.

(B) Licenses for the operation of vending machines shall be issued annually in accordance with § 5.08.110 and each machine so licensed shall bear identification devices required pursuant to § 5.08.140.

(C) The annual license fee shall be based upon the entire annual gross receipts for the previous year. A new business limited exclusively to renting, leasing or operating coin-operated vending machines shall pay a license fee based upon an estimated gross income for the first year of operation. The city may require the verification of gross receipts reported by requiring any such licensee to submit copies of tax returns filed with state or federal taxing authorities.

(D) Failure to report gross receipts from such machines shall be grounds for revocation of any license or permit issued pursuant to this section.

(E) Machines operated as an ancillary activity. Every individual or firm operating a coin-operated vending machine and whose business is not exclusively that of renting, leasing or operating such machines shall pay the basic business license fee required pursuant to § 5.12.010 and each machine shall be considered a separate business; provided, however, that the first machine shall be subject to the full basic business license fee and each additional machine thereafter shall be licensed upon the payment of a filing and processing fee which shall be established by resolution of the City Council.

(`83 Code, § 5.12.040) (Ord. 82-31 § 1, 1982; Ord. 93-21 § 7, 1993)

The penalty for failure to pay a business license tax when due shall be as set forth in § 5.04.100.

(`83 Code, § 5.12.050) (Ord. 84-3 § 1, 1984; Ord. 93-21 § 8, 1993)