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El Dorado County, CA November 2, 2010 Election
Measure E
Updating the City's Business License Tax
City of South Lake Tahoe

Local Ordinance - Majority Approval Required

Fail: 2010 / 49.19% Yes votes ...... 2076 / 50.81% No votes

See Also: Index of all Measures

Results as of Nov 24 1:01pm, 100.0% of Precincts Reporting (6/6)
46.7% Voter Turnout (4086/8747)
Information shown below: Impartial Analysis | Full Text

Shall the ordinance that amends the methods for calculating certain business taxes in the City of South Lake Tahoe to increase locally controlled revenue for city services and operations + such as, police, fire, paramedics, snow removal, parks, and street repair + by reducing the percentage of taxes paid on gross revenues and increasing the not to exceed amount from $3,387 to $10,000 per calendar year, be adopted?

Impartial Analysis
Passage of Measure E will reduce the business license tax on 95% of businesses in the City of South Lake Tahoe by 10%. The Measure increases the maximum any business pays from $3,387 (adjusted for inflation each year) to $10,000 based on the tax rate for each type of business. The $10,000 maximum will be adjusted for inflation annually by resolution on or about July 1st by an amount equal to the lesser of 3% or the change in the San Francisco/Oakland All Urban Consumer Price Index published by the U.S. Bureau of Labor Statistics, or any successor to that index, the prior calendar year. The Measure will increase revenues to the City that may be used for police, fire, snow removal, paramedics, parks and recreation, roads and other essential services.

Businesses pay business license taxes per $1,000 of gross receipts pursuant to the Schedule Classifications as set forth in Section 15-29 as enacted by Resolution by the City Council from time to time.

Schedule A: $1.08 Schedule B: $1.62 Schedule C: $2.16 Schedule D: $2.70

Measure E will reduce the Schedules by 10% as of July 1, 2011:

Schedule A: $.97 Schedule B: $1.46 Schedule C. $1.94 Schedule D: $2.43

Description of each Business and Professions classification for each Schedule is listed in Section 15-29 of the City Code, available online at www.cityofslt.us or at the City Clerk's office during normal business hours.

The passage of Measure E will assist most businesses in reducing their tax burden. For instance, a retail store's tax rate will be reduced from 1.08 per $1,000 of gross receipts to .97 per $1,000 of gross receipts. For a business with $1,000,000 annual gross sales, their business license tax would be reduced from $1,080 to $970 per year. A retail store's gross sales must be in excess of $3,500,000 per year to pay more than the business is currently paying in business license taxes. A store's gross retail sales would have to be approximately $10,300,000 before the business would pay the $10,000 maximum.

If Measure E passes, the projection is the revisions to the tax rates will increase revenue to the General Fund of the City an estimated $101,593 per year. The measure is a general tax increase on certain business and requires a majority vote to pass. If the measure fails, the current business tax license rates shall remain in the effect.

This impartial analysis is submitted to the voters as required by Section 9280 of the Elections Code. The above statement is an impartial analysis of Measure E. If you desire to have a copy of the Resolution Submitting to the Voters of the City of South Lake Tahoe a Measure to Enact an Ordinance Updating the City's Business Tax License, please contact the City Clerk at (530) 542-6004 and a copy will be mailed to you at no cost.

 
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Full Text of Measure E
CITY OF SOUTH LAKE TAHOE RESOLUTION NO. 2010-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH LAKE TAHOE SUBMITTING TO THE VOTERS OF THE CITY OF SOUTH LAKE TAHOE A MEASURE TO ENACT AN ORDINANCE UPDATING THE CITY'S BUSINESS TAX LICENSE THE CITY COUNCIL OF THE CITY OF SOUTH LAKE TAHOE DOES RESOLVE AS FOLLOWS: Section 1: Election. Pursuant to Sections 9222 and 10201 of the California Elections Code, the City Council hereby submits to the voters of the City of South Lake Tahoe a measure to enact an ordinance to amend the method for calculating certain business taxes in the City of South Lake Tahoe to increase locally controlled revenue for city services and operations + such as, police, fire, fire, paramedics, parks, and street repair- by decreasing the percentage of taxes paid on gross revenues and increasing the not to exceed amount of $3,387 to $10,000 per calendar year. The measure shall be voted on at the general municipal election held on Tuesday, November 2, 2010.

Section 2: Ballot Proposition. The full text of the measure is the proposed ordinance attached hereto as Exhibit A and incorporated herein by this reference and such ordinance shall be printed in the voter pamphlet. The question to be submitted to the voters on the ballot shall be as follows:

"Shall the ordinance that amends the methods for calculating certain business taxes in the City of South Lake Tahoe to increase locally controlled revenue for city services and operations + such as, police, fire, paramedics, snow removal, parks, and street repair + by reducing the percentage of taxes paid on gross revenues and increasing the not to exceed amount from $3,387 to $10,000 per calendar year, be adopted?"

Section 3: Impartial Analysis. The City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the proposition pursuant to Section 9280 of the Elections Code.

Section 4: Ballot Argument. Members of the City Council are hereby authorized to submit a ballot argument for the measure pursuant to Article 4 of Chapter 3 of Division 9 of the California Elections Code.

Section 5: Rebuttal Argument. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the arguments for and against a City measure which will be printed and distributed to the voters, the Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The authors, or a majority of the authors, may prepare and submit rebuttal arguments not exceeding 250 words or may authorize, in writing, others to submit a rebuttal argument. The rebuttal arguments shall be filled with the City Clerk, accompanied by the printed names(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than ten (10) days after the final date for filing direct arguments. Rebuttal argument s shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it seeks to rebut. All previous resolutions providing for the filing of the rebuttal arguments for city measures are repealed. The provisions of the Section 5 shall apply only to the Election of November 2, 2010 concerning the ballot Proposition set forth in this Resolution and shall then be repealed.

Section 6: Other Acts. The Mayor and all other officers of the City are herby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents that they may deem necessary or advisable in order to complete the process for placing the proposition on the November 2, 2010 ballot.

Section 7: The City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and its certification to be entered in the Book of Resolutions of the Council of this City.

CITY OF SOUTH LAKE TAHOE - ORDINANCE NO. ___________ AN ORDINANCE OF THE CITY OF SOUTH LAKE TAHOE CITY COUNCIL AMENDING CITY CODE CHAPTER 15 + TAX RATES AND LICENSING, ARTICLE II + TAX RATES AND CLASSIFICATION, SECTION 28 + BUSINESS AND PROFESSIONS TAX RATES + GROSS RECEIPTS

The City Council of the City of South Lake Tahoe does hereby ordain as follows:

Section 1. Section 15-28 of Article II of Chapter 15 of the South Lake Tahoe City Code is hereby amended by decreasing the percentages of gross receipt per $1,000 for Schedules A through E and increasing the not to exceed amount to $10,000 for any business location in any calendar year.

15-28 Business and professions tax rates + Gross receipts. Businesses shall pay business license taxes per $1,000 of gross receipts pursuant to the Schedule Classifications as set forth in Section 15-29 as enacted by Resolution by the City Council from time to time.

Business taxes imposed by this section and administrative fees assessed pursuant to SLTCC 15-4.1 shall not exceed in total the sum of $10,000 for any business location in any calendar year. Penalties and interest shall be in addition to business license fees and administrative fees. Business taxes rates shall be applicable to every business made subject to a tax based upon gross receipts by this Code. The business license tax rates, administrative fees and maximum rates (the not to exceed amount) specified herein shall increase annually by resolution on or about July 1st by an amount equal to the lesser of three percent or the change in the San Francisco/Oakland All Urban Consumer Price Index published by the U.S. Bureau of Labor Statistics, or any successor to that index, the prior calendar year.

The City Manager or his/her designee shall annually calculate the increased amounts authorized by this section and shall publish those calculations in the manner required by law.

Section 2. It is the intention of the City Council, that, if any tax imposed under this Ordinance is for any reason held to be unconstitutional or contrary to state law, it is the intent of the City Council that the tax which would have been imposed had this ordinance not been adopted shall remain in effect.

Section 3. The City Council of the City of South Lake Tahoe may delete, restore, amend or alter any of the provisions of this ordinance and any provision of the City of South Lake Tahoe City Code affected by this ordinance provided that such action does not establish any new tax or increase any existing tax.

Section 4. Pursuant to Election Code Section 9217, this ordinance shall be considered adopted on the date that the City Council declares a majority vote in favor of the ordinance and shall go into effect ten (10) days after that date. However, the provisions of this ordinance shall not apply to business license taxes for the calendar year 2010 provided that the business has paid the 2010 business license tax prior to the effective date of this ordinance.


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Created: January 6, 2011 14:57 PST
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