Item 09 - Agreement for Business License Tax and Fee Software Services

Home Browse Search

(9) Accounts are done yearly to close out accounts that have had no activity after four years. In order to renew a Suspense Account either the Customer or a City employee with assessment privileges within the BTS must prompt the system to add charges in order to be billed. Non Resident State Licensed Contractors, however, are billed but charges are kept in "Suspense". Furthermore, some of the Suspense accounts are suppressed from being mailed an annual renewal such as Christmas Tree/Pumpkin Patch lots, Firework Stands, Itinerant Merchants, One Day Peddler/Solicitors, or Sports Exhibitions, as these activates require special land use certificates or permits. Most of these activities are transient in nature and require a review of the location were the business activity would be taking place. These types of activities often vary in location and from day-to-day or year-to-year. The Table below gives some statistical information as of July 31, 2023 relating to the volume involved in the realm of Suspense accounts. Note all Suspense accounts fall under the Flat Rate Renewals. However, some varieties are assessed based on a daily or quarterly tax rate. Amusement Center (> 10 days) 1/1/2023 12/31/2023 1 Carnival or Circus (< 4000 people) 1/1/2023 12/31/2023 2 Christmas Tree or Pumpkin Patch Lot 1/1/2023 12/31/2023 2 Firework Stand 1/1/2023 12/31/2023 22 Gratuitous - Registration Exempt 1/1/2023 12/31/2023 792 Itinerant Merchant 1/1/2023 12/31/2023 3 One Day Peddler/Solicitor 1/1/2023 12/31/2023 2 Sports Exhibition 1/1/2023 12/31/2023 1 State License Contractor - Class A/B 1/1/2023 12/31/2023 1010 State Licensed Contractor - Class C 1/1/2023 12/31/2023 1437 Total: 3272 Gratuitous / Hobbyist License Charge Accounts Businesses that operate part-time or are part-time hobbies which generate gross receipts but gross below a fixed annual threshold amount (currently $5,000.00) may pay a reduced Gratuitous License or Hobbyist License Charge on a Flat Rate Assessment basis and are eligible to have their registration charges (Application Processing Charge or Renewal Application Processing Charge) waived. Gross Receipts Rate Assessment Accounts Gross Receipts Rate Assessment business license taxes are required to be paid annually and are due and payable on March 1 of every year. Gross Receipts rate licenses become delinquent if not paid by the April 1 of each year. Generally, Gross Receipts Rate Assessment businesses are required to pay a "basic tax" amount, currently assessed at 60 annually, which for a new business is pro -ratable by quarters depending on the business start date. In addition, the assessment of gross receipts businesses consists of: o Gross Receipts based tax rate margin assessment 0 15 Registration Fee (Application Process Charge/Renewal Processing Charge) o $44 SB 11861AB I379 (State) Fee City of Santa Ana RFP No. 23-165 Page 39 of 196