Rolling Hills Estates Municipal Code Ch. 5.08 Business License Tax Schedule

Footnotes:

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Editor's note— Ord. No. 723, § 3(Exh. A), adopted July 10, 2018, effective January 1, 2019, repealed the former Ch. 5.08, §§ 5.08.010—5.08.220, and enacted a new Ch. 5.08 as set out herein. The former Ch. 5.08 pertained to license fee schedule and derived from Prior code §§ 730—739; Prior code §§ 741—744; Prior code §§ 746—749.2.

The amount of the annual business license tax to be paid to the city by a person engaged in any business within the city in order to obtain a business license under Chapter 5.04 is established as provided in this chapter.

(Ord. No. 723, § 3(Exh. A), 7-10-2018, eff. 1-1-2019)

The following businesses are taxed at the flat rate identified, subject to periodic adjustment as provided in Section 5.08.030:

A. Contractors—General. Every person engaged in the business of a general building contractor or general engineering contractor as licensed by the Contractors State License Board of the California Department of Consumer Affairs or any successor agency is subject to an annual business license tax of three hundred fifty dollars.

B. Contractors—Other. Every person engaged in the business of a specialty contractor or subcontractor, other than a building contractor or general engineering contractor, as licensed by the Contractors State License Board of the California Department of Consumer Affairs or any successor agency is subject to an annual business license tax of one hundred dollars.

C. Delivery Service. Every person not having a fixed place of business within the city, and not otherwise classified under this chapter, who delivers goods, merchandise or wares of any kind by vehicle or who provides any service by the use of vehicles in the city, is subject to an annual business license tax of two hundred fifty dollars.

D. Home Occupations. Every person engaged in a home occupation in accordance with Chapter 17.48 of this code is subject to an annual business license tax of fifty dollars.

E. Horse Trainers. Every person engaged in the business of horse training as defined in Section 5.40.010 of this code is subject to an annual business license tax of three hundred dollars.

F. Landscapers and Gardeners. Every person engaged in the business of landscaping or gardening and who does not hold a specialty contractor's license as provided in subsection B. is subject to an annual business license tax of one hundred dollars.

G. Real Estate Agents and Brokers. Every person engaged in the business of real estate sales or brokerage as licensed by the Bureau of Real Estate of the California Department of Consumer Affairs or any successor agency is subject to an annual business license tax of two hundred dollars.

(Ord. No. 723, § 3(Exh. A), 7-10-2018, eff. 1-1-2019)

The business license tax rates in Section 5.08.020 will be subject to an automatic Consumer Price Index (CPI) adjustment every five years beginning on January 1, 2024. Each CPI adjustment increase will be calculated by computing the percentage upwards change in the annual average, if any, in the CPI index for the previous five-year period ending in June of the prior year, and multiplying that percentage change against the then applicable tax rate in Section 5.08.020. The Consumer Price Index used will be the Consumer Price Index-All Urban Consumers for the Los Angeles, CA Area, not seasonally adjusted, all items index, annual average, as published by the United States Department of Labor, Bureau of Labor Statistics or any successor agency.

By way of example using hypothetical figures, the calculation to determine the CPI adjustment multiplier will be as follows:

1. CPI Annual Average ending June 2024 310

2. CPI Annual Average ending June 2018 280

3. Change in Index (Line 1 minus Line 2) 30

4. % Increase (30 ÷ 280 = .107%) x $100 tax rate = $10.71 increase in tax rate.

(Ord. No. 723, § 3(Exh. A), 7-10-2018, eff. 1-1-2019)

The following businesses are taxed at the specified percentage of gross receipts subject to the minimum tax amount provided in subsection (I):

A. Commercial/Industrial Property Leasing. Every person engaged in the business of leasing property for commercial or industrial uses is subject to an annual business license tax of: (1) two dollars per every one thousand dollars of gross receipts for businesses that cumulatively lease one hundred thousand square feet or less of space; or (2) one dollar for every one thousand dollars of gross receipts for businesses that cumulatively lease more than one hundred thousand square feet of space.

B. Food Service. Every person engaged in the business of the preparation of food for sale and consumption on or off the premises is subject an annual business license tax of fifty cents per every one thousand dollars of gross receipts.

C. Professional Services. Every person engaged in providing a professional service other than contracting that is licensed by the State of California, including any of its departments, bureaus and agencies, or is licensed by an organization specifically authorized to issue licenses or certifications under state law, is subject to an annual business license tax of one dollar per every one thousand dollars of gross receipts.

D. Recreation/Entertainment. Every person engaged in the business of recreation or entertainment (e.g., bowling alleys, golf courses, fitness/health clubs, movie theaters, riding facilities, skating rinks, tennis facilities, etc.) is subject to an annual license tax of three dollars per every one thousand dollars of gross receipts; provided, however, that a recreation/entertainment business with gross receipts of less than one hundred fifty thousand dollars will be subject only to the minimum tax imposed under subsection (I).

E. Residential Care Facilities. Residential care facilities and residential care facilities for the elderly, each as defined in Chapter 17.02 of this code, are subject to an annual business license tax of four dollars per every one thousand dollars of gross receipts.

F. Residential Property Leasing. Every person engaged in the business of leasing four or more residential dwelling units is subject to an annual business license tax of two dollars per every one thousand dollars of gross receipts.

G. Retail/Wholesale Sales. Every person engaged in the business of selling at retail or wholesale any commodities, goods, merchandise or wares is subject an annual business license tax of fifty cents per every one thousand dollars of gross receipts.

H. All Other Businesses Not Elsewhere Classified. Every person engaged in a business that is not otherwise classified in this Chapter 5.08 is subject an annual business license tax of one dollar per every one thousand dollars of gross receipts.

I. Minimum Tax. Any business subject to the annual business license tax in this section based on gross receipts must pay a minimum of one hundred fifty dollars in tax each year regardless of the actual amount of gross receipts. This minimum business license tax amount will be subject to an automatic Consumer Price Index (CPI) adjustment every three years using the same methodology set forth in Section 5.08.030.

(Ord. No. 723, § 3(Exh. A), 7-10-2018, eff. 1-1-2019)