Torrance Municipal Code Art. 2 Payment of Tax

(Amended by O-297; O-1501; O-1725; O-2129; O-2288; O-2416; O-2843; O-3170; O-3229; O-3354; O-3364)

Effective December 16, 1992, every person carrying on in the City any business or rendering any services, except those businesses expressly enumerated in Chapter 3, shall pay a basic license tax of $138.00* per year, and in addition thereto, shall pay an additional license tax of $40.001 for each person engaged in the business (except owner) up to a maximum of two thousand five hundred (2,500) employees.

(Amended by O-2129)

The additional license tax shall be based on the number of persons engaged in the business in the City on December 31st of the year preceding the year for which the license was issued.

(Amended by O-2288)

For the purpose of computing the additional license tax, person engaged in business shall mean all individuals engaged in the operation or conduct of any business, whether as owner, member of the owner’s family, partner, agent, manager and any and all other persons employed or working in said business for a wage, salary, commission or board and room. Number of persons may be determined by dividing by forty (40) the total number of hours worked per week by all persons engaged in business.

Every applicant applying for the first time for a business license under this Division shall file an affidavit estimating the number of persons he intends or expects to have engaged in the business for the balance of the year for which he is applying, and shall pay the license tax based on such estimate.

(Amended by O-1501; O-1725; O-2129; O-2288; O-2416; O-2843; O-3170; O-3229; O-3354; O-3364)

a) Effective July 1, 1988, every person who carried on a business from a fixed place within the City and which business is not specifically listed elsewhere in this Division, shall pay an annual license tax composed of a basic license tax of $138.00* and an additional license tax of $35.00* for each employee therein.

b) Effective July 1, 1988, every person not having a fixed place of business in the City who engaged in business within the City and which business is not specifically listed elsewhere in this Division shall pay an annual license tax of $135.00* and an additional tax of $35.00* for each employee working within the City of Torrance.

Every person carrying on business as a concessionaire at a fixed place of business in the City shall pay the license taxes as provided in this Division the same as if such business were conducted under a separate roof.

(Amended by O-2129: O-2288; O-2843; O-3170; O-3229; O-3354; O-3364)

a) Every person not having a fixed place of business in the City who carries on the business of a retail route within the City, and which business is not specifically listed elsewhere in this Division, shall pay an annual license tax of $158.002 per year per vehicle.

b) Every person not having a fixed place of business in the City who carries on the business of a wholesale route within the City and which business is not specifically listed elsewhere in this Division shall pay an annual license tax of $112.00* per year per vehicle.

Any person carrying on a business at a fixed place of business for which a license tax has been paid shall not be charged an additional license tax for retail or wholesale routes operated from such business.

Where two (2) or more types of business are carried on at the same address and under one (1) ownership, the license tax shall be paid for the classification of the business conducted for which the higher fee is required.

(Amended by O-743)

The annual license tax shall be due and payable to the City in the Office of the License Supervisor at the time specified in this Division or when not so specified, on the first day of January of each year.

(Amended by O-396)

The daily license tax provided in this Division shall be due and payable to the City in the office of the License Supervisor each day, in advance, and shall become delinquent on the following day.

(Amended by O-809; O-2129; O-2288)

Notwithstanding the provisions of any section of this Division, the basic annual flat rate or plus fee license tax shall be pro-rated so that the applicant shall pay therefor the following amounts:

a) January 1 through March 15-Total tax due

b) March 16 through June 15-Three-fourths of such tax

c) June 16 through September 15-One-half of such tax

d) September 16 through December 15 or after December 15th at the option of the person applying, the total fee for the following year.-One-fourth of such tax

e) Notwithstanding subsections a), b), c) or d)-The minimum fee shall not be less than $1.00.

(Amended by O-3061)

a) Whenever any money is collected or received by the Revenue Administrator, it shall be refunded with the approval of the License Review Board only under the following conditions:

1. Where a refund is specifically authorized by the provisions of law not requiring payment of the license tax;

2. Where the money is paid to secure a license not required by law;

3. Where the amount paid was in excess of the amount required by law;

4. Where the applicant has not at any time after applying for a license actually commenced to engage in the business or performed any act for which a license is required.

b) When a refund is made under the provisions of this Section, the City shall retain from the amount refunded twenty (20) percent thereof for administrative expenses, but not to exceed Twenty-five Dollars ($25.00). If, in the opinion of the City Manager or the City Council, the City was at fault, such retained amount may be waived.

c) All requests for refunds shall be made in writing to the Revenue Administrator.

d) All refunds payable under the provisions of this Section shall first be applied to pay any debt owed by the applicant to the City.

(Amended by O-1742)

The License Supervisor shall deposit daily with the City Treasurer all monies collected for licenses, for which the City Treasurer shall issue a receipt.

(Added by O-2129; Amended by O-2288)

In the event a discrepancy exists between the amount of tax paid and the amount of tax due, resulting in an underpayment or overpayment of the tax in an amount of $7.00 or less, the License Supervisor may accept and record such underpayment or overpayment without notification to the taxpayer.

(Amended by O-2843; O-3376)

a) The rate of license tax due and owing on January 1, 1994 shall remain the same as for the same license on January 1, 1993. Commencing, however, on July 1, 1994, the rate of business license tax shall increase by the percentage of increase, if any, of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics between the months of May 1993 and May 1994.

b) Annually thereafter, if the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor for the month of May shall stand at the same index number as in May 1994 (using the price prevailing during the years 1982-84 as a base of 100) then the amount of the taxes in this Division 3 shall remain as written herein.

c) If the said index for said month shall stand at other than the index number in May 1994, then the amount of fees provided in this Division 3 shall be increased or decreased a corresponding amount; provided, however, that the fees shall be rounded to the nearest dollar, except as provided in Sections 35.7.3 and 35.8.4

d) The amount of adjustment shall be determined by the Director of Finance, who shall provide such adjustment figures each calendar year thereafter.

e) In the event the said bureau shall revise the said index, the Director of Finance shall accept the method of revisions or conversion recommended by the bureau.

f) If the said bureau shall discontinue the preparation of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor, using prices prevailing in the year 1982-84 as a base of 100, and if no transportation table prepared by the Bureau is available which is applicable to the years 1982-84, then the fees shall be increased or decreased on the basis of any other nationally recognized indicator of increases or decreases in consumer product prices.

(Added by O-3298; amended by O-3313)

a) A tax is hereby imposed upon every person owning or operating a commercial office building in the City at the rate of five (5) cents per gross square foot per year, except as provided in Section 31.2.20 below.

b) The amount of tax shall be determined by the Director of Finance annually, and shall be billed to the owner or operator annually. Said tax shall be increased or decreased in relation to the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor.

c) If the said Index for said month shall stand at other than 130.5 then the amount of fees provided in this Section may be increased a corresponding amount; provided, however, that the fees shall be rounded to the nearest one-tenth of one cent, but shall not be less than five (5) cents per square foot, except as provided in Sections 35.7.3 and 35.8.4

d) The amount of adjustment shall be determined by the Director of Finance, and she shall provide such adjustment figures annually thereafter.

e) In the event the said Bureau shall revise the said Index, the Director of Finance shall accept the method of revisions or conversion recommended by the Bureau.

f) If the said Bureau shall discontinue the preparation of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor, using prices prevailing in the years 1982-84 as a base of 100, and if no transposition table prepared by the bureau is available which is applicable to the years 1982-84, then the fees shall be increased or decreased on the basis of any other nationally recognized indicator of increases or decreases in consumer product prices.

(Added by O-3298)

The tax imposed by this Article shall be effective July 1, 1990.

(Added by O-3298)

a) For purposes of Section 31.2.17, the term "commercial office building" shall mean any building which is used to the extent of more than fifty percent (50%) for office uses.

b) For purposes of Section 31.2.17, the term "office uses" shall mean those uses which are customarily associated with offices where such work as clerical, consulting or computing is performed, including, but not by way of limitation, professional offices, such as legal, medical, dental, engineering, scientific, fine arts, literary, social services, architects, designers, employment agencies, secretarial services, accounting, stocks and bonds, typing and labeling services, travel agencies, public relations, escrow offices, mortgage or loan offices, insurance agencies, collection agencies, advertising agencies, and business offices, both general and corporate, but not including banks, savings and loans or laboratories.

(Added by O-3298)

The tax imposed by this Article shall be calculated on the gross floor area of each building identified as a commercial office building; provided, however, that such tax shall be applied only to those commercial office buildings, or portions of commercial office buildings, which exceed five thousand (5,000) square feet in area.

(Added by O-3298)

Any person against whom a determination is made under Section 31.2.14 of this Article may petition for a redetermination within thirty (30) days after service upon the person of notice thereof. If a petition for redetermination is not filed within the thirty (30) day period, the determination becomes final at the expiration of the period.

(Added by O-3298)

If a petition for redetermination is filed within the thirty (30) day period, the Director shall reconsider the determination and, if the person has so requested in his petition, shall grant him an oral hearing and give him ten (10) days notice of the time and place of the hearing. The Director may continue the hearing from time to time as may be necessary.

(Added by O-3298)

The order or decision of the Director upon a petition for redetermination becomes final thirty (30) days after mailing of notice thereof.

(Added by O-3298)

All determinations made by the Director under this Article are due and payable at the time they become final. If they are not paid when due and payable, a penalty of ten percent (10%) of the amount of the determination, exclusive of interest and penalties, shall be added thereto.

(Added by O-3298)

Any notice required by this Article shall be served personally or by mail.