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HomeMy Public PortalAboutOrd. 1048 ORDINANCE NO. 1048 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYPdWOOD ADDING DIVISION 4 TO ARTICLE II OF CHAPTER 17 OF THE LYNWOOD CITY CODE LEVYING A LICENSE FEE UPON PERSONS ENGAGED IN ANY TRADE, OCCUPATION OR PROFESSION IN THE CITY. THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES ORDAIN AS FOLLOWS: SECTION 1. Division 4, commencing with Section 17-60, hereby is added to Article II of Chapter 17 of the Lynwood City Code to read as follows: DIVISION 4 LICENSE FEE ON PERSONS ENGAGED IN ANY TRADE, OCCUPATION OR PROFESSION SECTION 17-60. Employee License Fee Commencing January 1, 1979, for the privilege of engaging in or follow- ing any business, trade, occupation or profession as an employee as defined in this section, within the City, a license fee measured by one percent (1%) of the gross receipts in excess of $1,625.00 for each quarterly report period specified herein of each such employee from such business, trade, occupation or profession is hereby imposed and required. From and after said date, it shall be unlawful for any employee to engage in or follow any business, trade, occupation or profession within the City without filing a required return, as defined herein, and paying the license fee when due £or the privilege of en- gaging in or following such business, trade, occupation or profession as an employee as defined in this section. SECTION 17-61. Definitions As used in this division, the following words and phrases will have the meaning here- after assigned to them unless the context clearly requires otherwise. (a) "Employee" shall mean any person engaged in the operation or conduct of any business, whether as owner, any member of the owner's family, partner, agent, manager, solicitor, and any and all other persons employed or working in said business, trade, occupation or profession. (b) "Engaging in or following any business, trade, occupation or profession as an employee" shall mean and include the doing of any work, rendering any kind of personal services, or holding any kind of position, office or job within the City, as clerk, laborer, tradesman, mechanic, manager, official or other employee but shall not mean or include any domestic servants employed in private homes. (c) The words "business, trade, occupation and profession" shall mean and include all and every kind of calling, whether or not carried on for profit, and shall also mean and include the holding of any kind of office or position, either by election or appointment, by any officer or employee of any employer as defined in this Section. (d) "Employer" shall mean and include any person, business, firm, corporation, either public or private, partnership, association, public utility, district, government body or political subdivision, or branch of any municipal, county, state or federal government, or any local public body or agency, or any other kind of organization who or which employs any person in any business, trade, occupation or profession in the City within the meaning of this section, whether or not for profit of the employer. (e) "Licensee" shall mean and include any person required to file a return or to pay a license fee under this section. (f) "Gross receipts" and "compensation" shall have the same meaning and both words shall mean and include the total gross amount of all salaries, wages, commissions, bonuses, or other money payments of any kind or any other considerations having monetary value, which a person receives from or is entitled to receive from or be given credit for by his employer for any work done or personal service rendered in any trade, occupation or profession, including any kind of deductions before "take home" pay is received; but the words "gross receipts" and "compensation" shall not mean nor include amounts paid to traveling salesmen or other workers as allowance or reimbursement £or traveling or other expenses incurred in the business of the employer, except to the extent of the excess of such amounts over such expenses actually incurred and accounted for by the employee to the employer. Where the gross receipts of a person pursuing a trade, occupation or profession within the City are due to work performed or services rendered by such person partly within and partly without the City, the portion of such gross receipts attributable to the City (and subject to tax hereunder) shall be determined as follows: (1)~ If the amount of such gross receipts depends on the volume of business transacted by such person, then the portion of such gross receipts attributable to the City shall be the portion of such gross receipts which the volume of business transacted by such person in the City bears to the volume of business transacted by him within and without the City. -2- (2) In all other cases, the portion of such gross receipts attributable to the City shall be the portion of such gross receipts which the total number of working hours em- ployed within the City bears to the total number of working hours within and without the City. (3) If it is impracticable to apportion such gross receipts as aforesaid either because of the peculiar nature of the services of such person, or on account of the unusual basis of compensation, or for any other reason, then the amount of such gross receipts reasonably attributable to work performed or services rendered in the City shall be determined in accordance with rules or regulations adopted or promulgated by the License Collector for the purpose. (4) The License Collector hereby is authorized, if he deems it practicable to do so, to establish for any such person, based upon data of past experience, a fixed percentage of gross receipts attributable to the City; provided, however, that the License Collector shall condition the establishment of such fixed percent- age upon the obligation of the taxpayer to report immediately to the License Collector any significant change in his mode of performing work or rendering services which might have some effect upon the portion of his gross receipts which is attributable to the City; and provided, further, that any such fixed percentage established by the License Collector is revocable by the License Collector at any time. SECTION 17-62. Withholdin of Fees• Filing of Returns Each employer shall deduct from each payment due each employee the amount of the license fee measured by the compensation due each employee. In determining the amount to be deducted and withheld, the compensation may, at the election of the employer, be computed to the nearest dollar. The payments required to be made on account of such deductions by employers shall be made quarterly to the City for the quarterly periods ending. March 31, June 30, September 30 and December 31 of each year, on or before the last day of the month next following the end of each such quarterly period. The first quarterly return and payment required to be made on account of such deduction shall be made, filed and paid to the Treasurer on or before April 30, 1979, for the quarterly period ending March 31, 1979. Returns and payments for subsequent quarterly periods shall be made quarterly there- after. Said returns shall be on a form or forms furnished by and obtainable from the License Collector and shall be subject to the rules and regulations prescribed by said License Collector. Such employer, in collecting said tax, shall be deemed to hold said tax as a trustee for the benefit of the City, and any such tax collected by such employer from his employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employee; provided, however, that the failure or omission of an employer to deduct such license fees shall not relieve an employee from the payment of such license fees and compliance with the requirements for making returns as provided in this Section or with any regulations promulgated under this Section. -3- When a quarterly return in form and substance satisfactory to the License Collector is not filed by an employer and/or: the license fees are not paid to the City by such employer quarterly, as herein provided, the employee for whom no return has been filed and no payment has been made shall file a return with the License Collector on or before the last day of the month next following the end o£ each such quarterly period, showing in said return his gross receipts subject to license fees for the preceding quarter, and shall file a return with the Treasurer on or before January 31 of each year thereafter showing in said return the gross receipts subject to license fees during the preceding calendar year. If, for any reason, all license fees of a person subject to the provisions of this ordinance were not withheld by his employer from his gross receipts, such person shall file the return required by this section on a form obtainable at the License Collector's office. In addition to the gross receipts earned by him, such return shall show such other pertinent information as may be required by the License Collector. Each person making a return required by this section shall, at the time o£ filing thereof, pay to the City the amount of license fees due under this division; provided, however, that any portion of the license fees deducted at the source shall be deducted on the return and only the balance, if any, shall be due and payable at the time of filing said return. The measure of an employee's liability under the Employee License Fee imposed by Section 17-60 shall be reduced by the extent of his proportional personal liability to pay any other business license fees imposed by this division on such employee as an owner of or partner in the employing business. Such proportional liability of each owner or partner to pay such other license fee shall be measured by his ownership interest in the employing business. An employee shareholder of a professional corporation incorporated pursuant to the laws of the State of California, or a small business corporation which is eligible to and elects to be taxed under the provisions of Chapter 1, subchapter S of the Internal Revenue Code o£ the United States, shall be entitled to a proportional credit against his liability under Section 17-60 for the corporation's payment of any other business license fee imposed by this division. The proportional credit allowed such stockholder employee shall be measured by the percentage of the outstanding stock of the employing corporation owned by such stockholder employee. SECTION 17-63. Duties of License Collector. It shall be the duty of the License Collector to collect and receive all license fees imposed by this division in the manner prescribed by this division, and to keep an accurate record thereof. Said License Collector is hereby charged with the enforce- ment of this division, except as otherwise provided herein, and may prescribe, adopt and enforce rules and regulations relating to the administration and enforcement of this Section, including provisions for the re-examination and correction of returns and payments. The License Collector may prescribe the extent to which any ruling or regulation shall be applied without retroactive effect. -4- Upon disallowing any claim submitted pursuant to Section 17-65 the License Collector shall mail written notice thereof to the claimant at his last known address. The form to be provided to employers withholding the license fee pursuant to Section 17-62 shall require the employer to furnish the following information in addition to other information required by the License Collector: 1. Name of the employer. 2. As to each employee subject to the Employee License Fee: a. The employee's name and Social Security number; b. Employee's gross receipts or compensation; c. The amount of any credit pursuant to Section 17-62; and d. The amount of license fee withheld. The License Collector or any authorized employee, is hereby authorized to examine the books, papers and records of any employer or of any person subject to the license fees for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the license fees due under this division. Every such employer, supposed employer, licensee or supposed licensee is hereby directed and required to furnish to the License Collector, or his duly authorized agent or employee, the means, facilities and opportunity for making such examination and investigations as are hereby authorized. The License Collector is hereby authorized to examine any person, under oath, concerning any gross receipts which were or should have been shown in a return, and for this purpose may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such gross receipts or compensation. The refusal of such examination by any employer or person subject or presumed to be subject to the license fees shall be deemed a violation o£ this division. Any information gained as the result of any returns, in- vestigations, hearings or verifications required or authorized by this section shall be confidential, except for official pur- poses, and except pursuant to judicial order. Any person divulging such information shall, upon conviction therefor, be deemed guilty of a misdemeanor. SECTION 17-64. Interest and Penalties. (a) Original Delinquency Any person who fails to remit any license fee imposed by this division within the time required shall pay a penalty of ten percent (10g) of the amount of the fee in addition to amount of the fee. -5- (b) Continued Delinquency Any person who fails to remit any delinquent remittance on or before a period of six (6) months following the date in which the license fee first became delinquent shall pay a second delinquency penalty of ten percent (10$) of the amount of the license fee in addition to the amount of the fee and the ten percent (10%) penalty first imposed. (c) Fraud. If the License Collector determines that the nonpayment of any license fee due under this division is due to fraud, a penalty of twenty-five percent (250) of the amount of the license fee shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section. (d) Interest. In addition to the penalties imposed any person who fails to remit any license fee imposed by this section shall pay interest at the rate of one-half of one percent (.5~) per month, or fraction thereof, on the amount of the fee, exclusive of penalties from the date on which the license fee first became delinquent until paid. (e) Penalties Mer ed With Tax Every penalty imposed and such interest as accrues under the pro- visions of this section shall become a part of the license fee herein required to be paid. SECTION 17-65. Refund of Tax. Whenever the amount of any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the City under this division, it may be refunded provided a verified claim in writing therefor, stating the specific ground upon which said claim is founded, is filed with the License Collector within one (1) year from the date of pay- ment. The claim shall be audited by the City Treasurer and shall be made on forms provided by the License Collector. If the claim is approved by the License Collector and by the City Treasurer, the excess amount collected or paid may be refunded or may be credited on any amounts then due and payable from the person from whom it was collected or by whom paid, and the balance may be refunded to such person, his administrators or executors. SECTION 17-66. Board of Review. A Board of Review consisting of the City Manager, the City Treasurer and the City Clerk is hereby created. The Board shall select from its members a chairman who shall serve at its pleasure. Any member of the Board may deputize in writing filed with the Board any member of his office to serve in his place on such Board for such period or in such hearing as he may desire. A majority of the members of the Board shall constitute a quorum. The Board shall keep a record of its transactions. The Board shall be deemed to be in the office of the City Manager, shall meet and keep its files in his office and all filings with the Board relating to appeals or otherwise shall be made at such office. Neither the members of the -6- Board nor the members of their offices deputized to serve in their places at any time shall receive any compensation as such members or acting members for their services on the Board. Any person dissatisfied with any decision of the License Collector adversely affecting the rights or interests of such person, which is made under the authority conferred by this division, may appeal therefrom to the Board of Review within twenty (20) days from the day of mailing notice of such decision by the License Collector, as provided in Section 17-65. The Board may affirm, modify or reverse such decision or dismiss the appeal therefrom, as may be just, and shall prescribe such forms, rules and regulations relating to appeals as it may deem necessary. The Board shall approve, modify or disapprove all forms, rules and regulations prescribed by the License Collector in the adminstration and enforcement of this Section; and such forms, rules and regulations shall be subject to and become effective only on such approval. On written application showing good cause, the Board or its chairman may, without hearing, by written order filed with the License Collector, extend for not more than thirty (30) days the time provided in this division for the filing of any return or making any payment. For the period of such extension the penalty in regard thereto shall be waived. SECTION ?.. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of com- petent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance or its application to other persons or places. The City Council hereby declares that it would have adopted this ordinance, and each section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions, or the application thereof to any person or place, be declared invalid or unconstitutional. SECTION 3. The City Clerk hereby is authorized and directed to cause a copy of this ordinance to be published in the LYNWOOD PRESS, a newspaper of general circulation in the City, within fifteen (15) days after the adoption hereof. First read at an adjourned regular meeting of the City Council of said City held on the o73 day of June, 1978, and finally adopted and ordered published at an adjourned regular meeting of said Council held on the o2% of June, 1978, by the following vote: -7- AYES: NOES: ABSENT: ATTEST: COUNCILMEN gyORK, MORRIS, HIGGINS:"" "', COUNCILMEN ROWE COUNCILMEN GREEN, i `l . GEORGE W ! GGINS Mayor of the City of Lynwood ~' ~~-' r i y Clerk -8- STATE OF CALIFORNIA ) . sa.. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, and ex~officio clerk of the Council of said City, do hereby certffy that the above is a true and correct copy of Ordinance No. 1048 adopted by the City Council of the City of Lynwood, and that same was passed on the date and by the vote therein stated. Dated this 30th da of June Y , 197 . ~~ City Clerk, City of Lynwood