1998 AGN MAY 19 I01 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF MAY 19, 1998 TO: Honorable Mayor and City JAPPROVAL: HqKrq)Garcia, FROM: 0 Community DeOeLopmkt Director SUBJECT: First Reading of a Revised Amendment to the Business License Ordinance, Implementing a $6,000 Annual CAP. DATE: May 11, 1998 BACKGROUND: As Council may recall, a previous version of the above referenced Ordinance received first reading at the February 3, 1998 City Council meeting. Since that time, staff has suggested certain non - substantive changes, to clarify the effective date of the annual cap. DISCUSSION/ANALYSIS: As now written, the Ordinance specifies that it applies to business license taxes due as of January 1, 1999. As Council knows, taxes due on that date are based on the gross receipts or other operational characteristics of businesses during the 1998 calendar year. Because these changes are more than "corrections of typographical or clerical errors" in the initial Ordinance, the Ordinance as currently written must go back for first reading. Note, however, that this will in no way change the effective date of the Ordinance. FINANCIAL IMPACT: A review of the City's top 1,000 revenue-producing businesses reflects a significant amount of revenue generated by business license tax. To determine what the projected financial impact would be, staff performed the following analysis: CAP PROJECTED REVENUE LOSS $10,000 $ 7,372 $ 8,000 $ 14,535 $ 6,000 $ 1,0p(� $ 29,015 $206,829 G� Development Director ENVIRONMENTAL IMPACT: None. PERCENTAGE 1-5% 6-11% 12-18% 65-77% RECOMMENDATION: Introduce and waive further reading of the attached Ordinance, restricting the payment of business license taxes to $6,000 per business, effective January 1, 1999. Attachment: Ordinance Item # I