ORD 623 ORDINANCE NO. 623
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
ADDING SECTION 5.04.015 (INTENT), AND AMENDING SECTIONS
5.04.050 (LICENSE AND TAX PAYMENT REQUIRED), 5.04.070
(EVIDENCE OF DOING BUSINESS), 5.04.090 (EXEMPTIONS), AND
5.04.440 (ANNUAL CHANGE OF BUSINESS LICENSE TAX) OF
CHAPTER 5.04 (BUSINESS LICENSES) OF TITLE 5 (BUSINESS
TAXES, LICENSES AND REGULATIONS), RELATING TO
BUSINESS LICENSE TAXES
WHEREAS, the City Council of the City of Rancho Palos Verdes may, pursuant
to its authority under Section 37101 of the Government Code, "license, for revenue and
regulation, and fix the license tax upon, every kind of lawful business transacted in the
city."
WHEREAS, the City Council has provided for a business license tax for the
purposes of revenue generation in Chapter 5.04 of the Rancho Palos Verdes Municipal
Code.
WHEREAS, the City Council now wishes to clarify that the business license tax
will only be imposed upon businesses that have a physical presence in the City, no
matter how fleeting, to offset the cost of the use of the City's services and infrastructure.
WHEREAS, the City Council finds that the CPI-U is a more accurate inflation
indicator than the Gross National Product deflator and desires to rely on the CPI-U
index for business tax increases.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES ORDAINS AS FOLLOWS:
SECTION 1: The forgoing recitals are true and correct and are incorporated
herein by this reference.
SECTION 2: 5.04.015 (Intent) of Chapter 5.04 (Business Licenses) of Title 5
(Business Taxes, Licenses and Regulations) is added as follows:
"5.04.015 — Intent.
It is the intent of this chapter to provide the city with a mechanism to
collect business license taxes from businesses that have a physical
presence within the city, or that enter the city to conduct business at
any point. The business license tax will contribute to the general
fund, and will thereby partially offset the cost of providing city
services, such as public roads and other public infrastructure and
utilities. To that end, any business that provides services (including
construction), supplies, or equipment to any individual or to any
entity within the city, and which has any physical presence within the
city, however fleeting, shall obtain a business license."
SECTION 3: Subsection A of Section 5.04.050 (License and tax payment
required) of Chapter 5.04 (Business Licenses) of Title 5 (Business Taxes, Licenses and
Regulations) is amended to read:
"A. There are imposed upon the businesses, trades, professions,
callings and occupations specified in this chapter license taxes in the
amounts prescribed in this chapter effective upon the effective date of the
ordinance codified in this chapter. It is unlawful for any person to transact
and carry on any business, trade, profession, calling or occupation which
has any physical presence whatsoever within the city without first
having procured a license from the city to do so and paying the tax
prescribed in this chapter or without complying with any and all applicable
provisions of this chapter."
SECTION 4: Section 5.04.070 (Evidence of doing business) of Chapter 5.04
(Business Licenses) of Title 5 (Business Taxes, Licenses and Regulations) is amended
to read:
"When any person by use of signs, circulars, cards, telephone book, or
newspapers, advertises, holds out, or represents that he is in business in
the city, or when any person holds an active license or permit issued by a
governmental agency indicating that he or she is in business in the city,
and such person fails to deny by a sworn statement given to the collector
that he or she is not conducting a business in the city, or that his or her
business does not require him or her to physically enter the city in
any manner, including by his or her agents, representatives, or
employees after being requested to do so by the collector, then these
facts shall be considered prima facie evidence that he or she is
conducting a business in the city."
SECTION 5: Subsection (E) of Section 5.04.090 (Exemptions) of Chapter 5.04
(Business Licenses) of Title 5 (Business Taxes, Licenses and Regulations) is added as
follows:
"E. Any person who does not physically conduct business in the
city, or who conducts business in the city but requires no physical
presence in the city whatsoever to conduct his or her business in the
city, shall not be subject to the license tax. By way of nonexhaustive
examples, any person who conducts all business in the city
electronically, is not required to obtain a business license; on the
01203.0007/556242.2 Ordinance N o. 623
Page 2 of 4
other hand, site visits, plan review at city hall, or a meeting in the
city, shall trigger the business license requirement."
SECTION 6: Section 5.04.440 (Annual change of business license tax) of
Chapter 5.04 (Business Licenses) of Title 5 (Business Taxes, Licenses and
Regulations) is amended to read:
"All business license taxes and other fees or charges specified in this
chapter shall be changed on January 1, 1979, and on January 1st of each
year-thereafter, as follows:
A. On January 1, 1979, all such taxes and other fees or charges shall
- . • - • - - . .. - . - - • - -- - - - -• -- -
• •
• . - - . - -- -
BA. On January 1st of each year thereafter, all such taxes and other
fees orcharges - - - -- - - -- - - - -- - - - •-•• -- - - -•- - -
•
• - - . .. - . e . • ' - - ■ - • - -- - - - • .. .. -
- - - - - - •' - - - - - - - - - may be increased in an
amount not to exceed the Consumer Price Index-U, as published by
the U.S. Bureau of Labor Statistics, or the equivalent or successor
index; provided that the increase in tax pursuant to the CPI-U shall
be equal to or less than the increase to the tax in an amount to be
determined by adding to the amount of the tax or other fee or charge
in the previous calendar year.
B. Annual business license increases shall be instituted
following consideration and approval by the city council based on
annual analysis and recommendation by the Director of Finance."
SECTION 7: 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 competent
jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance.
The City Council hereby declares that it would have adopted this Ordinance, and each
and every 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 thereof be declared invalid or unconstitutional.
01203.0007/556242.2 Ordinance No. 623
Page 3 of 4
SECTION 8: The time within which judicial review of the decision reflected in this
Ordinance must be sought in governed by Section 1094.6 of the California Code of Civil
Procedure and other applicable short periods of limitation.
PASSED, APPROVED, AND ADOPTED this 6th day of August 2019.
,.Maor
Attest. Y
WNW'y clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. 623 passed first reading on July, 16 2019, was duly and regularly
adopted by the City Council of said City at a regular meeting thereof held on August 6,
2019, and that the same was passed and adopted by the following roll call vote:
AYES: Brooks, Cruikshank and Dyda
NOES: None
ABSENT: Alegria and Mayor Duhovic
ABSTAIN: None
dishv
AMr
MEW lerk
01203.0007/556242.2 Ordinance No. 623
Page 4 of 4
CITY OF RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES)
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the City Clerk of
the City of Rancho Palos Verdes;
That on August 7, 2019, she caused to be posted the following document
entitled: ORDINANCE NO. 623, AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADDING
SECTION 5.04.015 (INTENT), AND AMENDING SECTIONS 5.04.050
(LICENSE AND TAX PAYMENT REQUIRED), 5.04.070 (EVIDENCE OF
DOING BUSINESS), 5.04.090(EXEMPTIONS),AND 5.04.440(ANNUAL
CHANGE OF BUSINESS LICENSE TAX)OF CHAPTER 5.04(BUSINESS
LICENSES) OF TITLE 5 (BUSINESS TAXES, LICENSES AND
REGULATIONS), RELATING TO BUSINESS LICENSE TAXES, copy of
which is attached hereto, in the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
abr.
Mak
MUM lerk