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

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(9) Original Delinquency Any business which originally fails to obtain their required business license before initially commencing or carrying -on or transacting business in the City is subject to a 50% original delinquency penalty. This penalty, however, is abatable when the subject business responses in a timely fashion (by the last date of the month following the month in which notice is given) to a demand to obtain a business license and then applies for the required business license (and pays) for its in arrears taxes. See SAMC Sections 21-25 and 21-80.1. (Note: In the case of Original Delinquency, no interest charges are assessed.) Past Due Penalties & Interest Any bill received or bearing a postmark after the due date will be assessed past due penalties and interest according to the following cumulative table: At the 4th month, interest is calculated on the unpaid tax and penalty as a merged total.* • Upon the 1st Month's Delinquency: _ $ 10.00 or 10% of the unpaid tax (whichever is greater), and 1 % interest on unpaid tax, plus • Upon the 2nd Month's Delinquency: _ $ 15.00 or 15% of the unpaid tax (whichever is greater), and 1 % interest on unpaid tax, plus • Upon the 3rd Month's Delinquency: _ $ 25.00 or 25% of the unpaid tax (whichever is greater), and 1 % interest on unpaid tax, plus • Upon the 4th Month's Delinquency: _ $ 50.00 or 50% of the unpaid tax (whichever is greater), and 1 % interest on the merged balance, plus • An additional 1 % interest on the merged balance continuing for each month thereafter. Forced estimated accounts All accounts not reporting the required tax assessment values subsequently receive a Forced Assessment value and are billed (including initial penalty & interest assessment) accordingly. Forced estimations are nominally based on the following criteria: The average gross receipts amount (or other assessment criteria) reported for the same assessment period by similarly classified business, or The amount of the previously years' reported gross receipts (or other assessment criteria) adjusted for the annual increase in the local CPI, as applicable. Annual CPI Adjustment Some business license tax rates, charges, administrative fees, and deposits are adjusted annually for the net change (+/-) in the Los Angeles -Anaheim -Riverside All Urban Consumer CPI (1982 = 100%) computed from the base period beginning June 30, 1987 and ending each October 31 (Measure W reset the rates in 2022). Adjusted rates are then entered into the BTS rate table in November of each year for all the different types of assessment accounts (Flat Rate, Fixed Variable Flat Rate, Gross Receipts, and Variable Flat Rate, etc.) Apportionment • Prima Facie Apportionment Whenever an out-of-town (non-resident) business transacts and carries -on business within the City of Santa Ana it may apply to be assessed on a gross receipts basis (whetherit is nominally a Gross Receipts Rate Assessment business or not) based on its gross receipts solely generated within the City of Santa Ana. Burden on Interstate or Intercity Commerce; Petition for Adjustment Whenever a business license tax is claimed by a licensee, or applicant for business license to place an undue burden upon interstate or intercity commerce, or be violative of the constitutions of the United States and/or the State of California, the applicant or licensee can petition the Collector for an adjustment City of Santa Ana RFP No. 23-165 Page 47 of 196