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Home My WebLink AboutMINUTES - 12041990 - IO.13 I .O. -13 TO: BOARD OF SUPERVISORS s----L Contra FROM: Costa INTERNAL OPERATIONS COMMITTEE County DATE' November 26, 1990 c°rra�o�N `P�, - SUBJECT: STATUS REPORT ON PROPOSALS TO IMPOSE A BUSINESS LICENSE TAX IN THE UNINCORPORATED AREA OF THE COUNTY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. Establish a Business License Tax Task Force of 15 members and appoint members as follows: ORGANIZATION REPRESENTATIVE Building Industry Association of Guy Bjerke Northern California Danville Area Chamber of Commerce Bill Blendow Bethel Island Chamber of Commerce Timothy Murray E1 Sobrante Chamber of Commerce Jim Cowen County Administrator' s Office Tony Enea Rodeo Chamber of Commerce Lee Graves Contra Costa Council Diane Longshore Contra Costa Farm Bureau Marty Maggiore Associated General Contractors of Peter T. Muller California-East Bay District CONTINUED ON ATTACHMENYes YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD C MMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON IIpCt-MhPr .Q r 1 9 9 n APPROVED AS RECOMMENDED X OTHER r VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: ATTESTED 1940 PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) Please see Page 4. BY DEPUTY Industrial Association Walt -Murray Contra Costa Builders Exchange Vic Engel Council of Industries-West County Barry Toms Contra Costa Taxpayers' Association John Wolfe Concord Chamber of Commerce Harry .York Oakley Chamber of Commerce Ken Graunstadt Staff Sandra Winn County Auditor-Controller' s Office 2 . Authorize the Byron Chamber of Commerce to serve as alternate to the Bethel Island Chamber of Commerce and the Discovery Bay Chamber of Commerce to serve as alternate to the Oakley Chamber of Commerce. 3 . Authorize all other members of the Task Force not identified in Recommendation # 2 to designate their own alternates to represent them in their absence, providing they have advised staff to the Task Force of the name, address and telephone number of their alternate in advance of asking their alternate to represent them. 4. Indicate that it is the intent of the Board of Supervisors that the Business License Tax Task Force meet as often as is necessary to complete their work and file a final report with the Board of Supervisors by June 1, 1991, at which time the Task Force will have completed its function and will cease to exist. 5. Reaffirm the Board's intent to impose some type of Business License Tax on businesses in the unincorporated area of Contra Costa County and indicate that it is creating the Task Force to assist it in determining what the most appropriate and fair form of such a tax would be. 6. Determine that the mission of the Business License Tax Task Force is as follows: To develop an equitable business license tax proposal for the unincorporated area of the County and report their final recommendations to the Board of Supervisors by June 1, 1991. 7 . Specify that the objectives of the Business License Tax Task Force are the following: . A. To maximize business community participation in formulating the tax. B. To raise tax revenues to provide County services in the unincorporated area of the County. C. To minimize the negative impact of the proposed tax on businesses within the unincorporated area of the County. D. To minimize the costs of administering the tax. 8. The Business License Tax Task Force is requested to address the following issues: I -2- A. In what form should the tax be imposed - against gross receipts, as a f lat fee or in some other f orm? B. How should the rate structure be determined and . what should the rate be? C. What provisions should be made for exemptions from the tax? D. What enforcement provisions should be included in the ordinance? E. What provisions should be made for a registration fee and what administrative procedures will be the most workable? 9. In discussing the above issues, staff are requested to obtain and share with the Task Force data or legal opinions, as appropriate, on the following: A. Can a business license tax be imposed in such a way that a different level of tax could be imposed on two similar businesses which happen to operate in different areas of the County? B. Can a business license tax be imposed in such a way that payments on the tax can be spread out throughout the year, rather than being imposed and collected at one time? C. What actions have other urban counties in California taken in terms of imposing a business license tax on businesses in the unincorporated areas of the County? D. What information can be obtained from a variety of cities throughout the State which have imposed various types of business license taxes over a . period of years and to what specific purposes are the proceeds of such taxes put, if specific designation is made regarding the programs on which the tax revenue is to be spent? 10. Remove this item as a referral to the 1990 Internal Operations Committee and refer it instead to the 1991 Internal Operations Committee, with instructions to the Task Farce to report to the 1991 Internal Operations Committee as often as they believe events warrant such reports, but in no case later than a final report on June 1, 1991. BACKGROUND: On October 30, 1990 the Board of Supervisors referred to our Committee a proposal from the County Administrator that the Board of Supervisors impose a Business License Tax in the unincorporated area of the County. In doing so, the Board of Supervisors agreed to the formation of a Task Force which could study this issue and advise the Board of Supervisors on the form, content, manner of administration and other aspects of a business .license tax. On November 26, 1990 our Committee met with a variety of representatives from Chambers of Commerce and Industrial Associations throughout the County. We reviewed the attached report from the County Administrator' s office and received the attached letter from the Oakley Chamber of Commerce. -3- Following a candid and thorough exploration of the issues involved, and having received testimony from all individuals who wished to be heard on the subject, our Committee agreed on the above recommendations. cc: County Administrator County Counsel Tony Enea, Deputy County Administrator Sandra Winn, Staff to the Task Force Business License Tax Mailing List (Via CAO) -4- OFFICE OF THE COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building 651 Pine Street, 11th Floor Martinez, California DATE: November 26, 1990 TO: Supervisor Sunne Wright McPeak Supervisor Tom Powers INTERNAL OPERATIONS COMMITTEE FROM: Phil Batchelor, County Administrator %.f .'-. P•6. SUBJECT: BUSINESS LICENSE TAX TASK FORCE RECOMMENDATION Accept the , report from the County Administrator on the establishmenof a task force on a business license tax and a proposed task force work plan. BACKGROUND On October 23, the Board introduced an ordinance to provide for the establishment of a business license tax in the unincorporated areas of Contra Costa County. On October 30, a hearing was held to consider the adoption of the ordinance. After lengthy public testimony, the Board referred the proposed ordinance to the Internal Operations Committee. Also, the Board requested the County Administrator to establish a task force, representative of the business community, for the purpose of developing an equitable business license tax proposal. Attached is the membership of the proposed task force as proposed by staff. Staff approached the selection of a representative group in terms of both industry and geographic balance. Also attached is a proposed task force work plan for Committee review. PB:TE:amb Attachments Proposed Task Force on Business License Tax Guy Bjerke Barry Toms Building Industry Association Council of Industries/West of Northern California Contra Costa County 1280 Boulevard Way, Suite 211 P.O. Box 5789 Walnut Creek, CA 94596 Hercules, CA 94547 Bill Blendow, Executive Director John Wolfe Danville Area Chamber of Commerce Taxpayers' Association 665 South Hartz Avenue, Suite 102 P.O. Box 27 Danville, CA 94526 Martinez, CA 94553 Jim Cowen, President Harry York, Executive Vice El Sobrante Chamber of Commerce President P.O. Box 924 Concord Chamber of Commerce El Sobrante, CA 94803 2151-A Salvio Street Concord, CA 94520 Tony Enea, Deputy County Administrator &- s, (Te Be--Dotexmi4ied) �jl" I County Administrator' s Office Oakley Chamber of Commerce 651 Pine Street, 11th Floor P.O. Box 1340 Martinez, CA - 94553 Oakley, CA 94561 Lee Graves, President Staff Rodeo Chamber of Commerce Sandra Winn 524 - 4th Street Contra Costa County Auditor Rodeo, CA 94572 625 Court Street, Finance Bldg. Martinez, CA 94553 Diane Longshore Contra Costa Council One Annabel Lane, #214 San Ramon, CA 94583 Marty Maggiore Farm Bureau 790 Hoffman Lane Brentwood, CA 94513 Peter T. Muller, Manager East Bay District Associated General Contractors. of California 8301 Edgewater Drive Oakland, CA 94621 Walt Murray Industrial Association P.O. Box 728 Pittsburg, CA 94,565 I WORK PLAN FOR THE TASK FORCE ON I BUSINESS LICENSE TAX MISSION Develop an equitable business license tax proposal for the unincorporated area of the County within a six-month period. OBJECTIVES 1) To maximize business community participation in formulating the tax 2) To raise tax revenues to provide County services in the unincorporated area 3) To minimize the negative impact on businesses within the unincorporated area 4) To minimize the costs of administering the tax ISSUES 1) The type of tax - gross receipts, flat fee, other 2) The rate structure 3) Exemptions from the tax 4) Enforcement provisions 5) Registration fees and administrative procedures OARILY CHAMBER of COMMERCE NOVEMBER 26, 1990 SUPERVISOR TOM POWERS DISTRICT 1 100 37TH RICHMOND, CALIFORNIA 94805 DEAR SUPERVISOR POWERS, THE OAKLEY CHAMBER OF COMMERCE WOULD LIKE TO MAKE THE FOLLOWING SUGGESTIONS IN REGARDS TO THE PROPOSAL TO ENACT A BUSINESS LICENSE TAX IN UNINCORPORATED CONTRA COSTA COUNTY . FIRST OF ALL, WE BELIEVE OAKLEY TO BE THE LARGEST IDENTIFIED UNINCORPORATED AREA OF THE COUNTY . AS FAR AS OAKLEY IS CONCERNED, THE COUNTY ' S RIGHT TO TAX SHOULD BE FORFEITED UPON OAKLEY ' S INCORPORATION . WE QUESTION THE FAIRNESS OF COMPARING UNINCORPORATED AREAS TO CITIES AS THE COUNTY ' S EVALUATION HAS PROJECTED . CITIES RETAIN BUSINESS LICENSE FEES TO FURTHER INCREASE SERVICES WITHIN ITS CITY LIMITS . THE COUNTY SHOULD INSTEAD, LOOK TO OTHER COUNTIES SURROUNDING CONTRA COSTA TO SEE HOW THIS TAX HAS/HAS NOT BEEN IMPLEMENTED : 1 ) STANISLAUS COUNTY : NO BUSINESS TAX LICENSE 2) SAN JOAQUIN COUNTY : ,FLAT $20 YEAR; 3 YEARS FOR $45 3) ALAMEDA COUNTY : 25 CENTS PER $1000 GROSS/ MAX $125 4) SACRAMENTO COUNTY : FLAT $125 FOR 3 YEARS 5) SOLANO COUNTY : 1ST YEAR $140 EVERYONE/ $40/YR RENEWAL IF CONTRA COSTA COUNTY FEELS OAKLEY MUST BE COMPARED TO A CITY, THE NEAREST COMPARITIVE CITY SHOULD BE USED : BRENTWOOD . BRENTWOOD IMPOSES A FLAT RATE OF $21 .60 PLUS $4. 80 PER EMPLOYEE BUSINESS LICENSE FEE . IF AN APPLICATION/ADMINISTRATION FEE IS INDEED NECESSARY, IT SHOULD BE A ONE TIME FEE UPON INITIAL APPLICATION WITH NO OTHER ADMINISTRATIVE FEES . A MINIMUM OF TWO CLASSIFICATIONS BE DELETED FROM PROPOSED ORDINANCE : 1 ) ALL NON-PROFIT ORGANIZATIONS (415) 625-1035 0 Post Office Box 1340 10 Oakley, California 94561 AULF CHAMBER of COMMERCE 2) INDIVIDUALS UNDER THE AGE OF 18 GROSSING LESS THAN $5000 WE WOULD ALSO LIKE TO SEE A FUND SET UP FROM THESE COLLECTED MONIES TO BE MADE AVAILABLE TO UNINCORPORATED AREAS FOR BUSINESS DEVELOPMENT PROJECTS . SINCERELY, OAKLEY CHAMBER OF COMMERCE SUB-COMMITTEE PROPOSED BUSINESS TAX (415) 625-1035 Post Office Box 1340 Oakley, California 94561