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.
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(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.
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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.
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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.
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(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
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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:
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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
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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