HomeMy WebLinkAboutMINUTES - 10231990 - 2.6 TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator
Costa
County
DATE: October 23 , 1990 °sr,_
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SUBJECT: ORDINANCE TO ESTABLISH BUSINESS. LICENSE TAX IN .
UNINCORPORATED AREA
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)$BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. Introduce the Ordinance on Business License Taxes, waive
reading, and fix October 30 , 1990 for consideration.
2. Direct the County Administrator to notify the chambers of
commerce, Industrial Association, and the Building Industry
Association.
FINANCIAL IMPACT:
It is estimated that $300,000 to $400,000 will be raised from
business license taxes.
BACKGROUND:
Contra Costa County experienced substantial budget problems this
fiscal year, resulting in the elimination and reduction of
programs as well as employee layoffs. The primary reason for the
County budget problem was a severe reduction in funding from the
State of California.
After severely reducing revenue to the County, the State
authorized the Board of Supervisors to levy several fees and
taxes to replace the lost revenue. A license tax on businesses
in the unincorporated area was one new source of revenue
authorized by the State. This taxing authority places the County
on an equal footing with cities, who have been levying business
license taxes for many years. Currently, 12of the 18 cities in
Contra Costa County impose a business license tax.
CONTINUED ON ATTACHMENT:- YES SIGNATURE: Orr
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON. October 23, 1990 APPROVED AS RECOMMENDED X & OTHER X
Also, DIRECTED County Administrator to meet with business community to resolve
concerns expressed today; and REQUESTED County Administrator to report on application
of the ordinance to agricultural operations.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT r ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: I III, IV, V NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT:— ABSTAIN: II OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED /�� ./CJ 0 � /Q'90
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88)
BY DEPUTY
-2-
The proposed tax structure is comparable to most cities in the
County and is presented below`.
1. All businesses except manufacturing will be charged on
a gross receipts basis using the following schedule:
'Gross Receipts Tax Rate
$ 5,000 - $ 100,000 $1. 00/Thousand
$ 100,001 - $ 250,000 $ . 90/Thousand
$' 250 ,001 - $ 500,000 $ . 80/Thousand
$ 500,001 - - $ 750,000 $ .70/Thousand
$ 750,001 - $1 ,000,000 $ . 60/Thousand
.$ 1,000,001 and above $ . 30/Thousand
Minimum Tax $25
2. Manufacturing firms will be charged a flat fee of $150
plus $12 per employee.
3. Each business will be charged a $25 annual registration
fee.