1996 AGN AUG 06 I22 - Laserfiche WebLink

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City Council Meeting of August 6, 1996 New Tax Classification Page 3 In the County of San Bernardino, six neighboring cities were surveyed. The City of Colton placed near the center between the highest business license tax assessed and the lowest business license tax assessed as it relates to auto dealers. In the County of Riverside, only the City of Moreno Valley was found to be comparable in its taxing method to the City of Colton. After reviewing the results of the survey with the owners of L.J. Snow Ford, staff was directed to explore other possible options. ALTERNATIVES: Option One Leave the existing tax classification "A" method unchanged. None of the data obtained from the survey is applicable to the City of Colton and yields any evidence of inequality. Option Two Create Tax Classification "D" by using the same rate schedule from Tax Classification up to Gross receipts of $15,666,000.00 (Million). Then the following gross receipts ranges would apply: Range Tax Amount Due 15,667,000 to 30,000,000 $ 7,500.00 30,000,001 to 45,000,000 $10,000.00 45,000,001 to unlimited $12,500.00 Option Three Create Tax Classification "D" by using the same rate schedule from Tax Classification up to gross receipts of $15,666,000.00 (million), then create a cap of $5,000.00 beyond gross receipts of $15,666,000.00. There is no basis for comparison in establishing this amount as the cap based on the survey. Neither option two nor three would exempt any current unpaid taxes due to the City of Colton under the current provisions of the Business License Ordinance. Creating a new Tax Classification for Motor Vehicle Dealers, with a Specialized Cap, Classification "D," would be a major change to the Business License Ordinance. Please be advised that under the provision of Proposition 62, a change of this nature may require a vote of the people.