The proposed Ordinance, if adopted, would eliminate the business license tax of $9 per shuttle service parking stall per year imposed on persons engaged in the business of operating a parking lot for vehicles which is open to the public.

The proposed Ordinance, if adopted, would enact a business license tax imposed on persons engaged in the business of operating a parking lot in the City of El Segundo for vehicles of ten percent (10%) of the annual gross receipts generated from the operation of the parking lot.

The proposed Ordinance, if adopted, would define the term “gross receipts” to mean gross income, as defined in the Internal Revenue Code, provided, however, that the term “gross receipts” shall not include amounts received under a commercial lease whether or not received as rent or separately assessed.

The proposed Ordinance, if adopted, would exempt from the business license tax, gross receipts attributable to employee, theater patron, restaurant patron, retail patron, hotel patron, and validated parking; whether self or valet parking, for business establishments located within the City of El Segundo.

The above statement is an impartial analysis of the proposed Ordinance. If you desire a copy of the ordinance, please call the elections official’s office at (310) 524-2307 and a copy will be mailed at no cost to you. (Elections Code Section 9280.)

An Ordinance of the people of the City of El Segundo, California, amending Section 5.08.527, entitled “Parking Lots,” of Chapter 5.08, entitled “Business License Schedule,” of Title 5, entitled “Business Regulations and Licensing,” of the El Segundo Municipal Code by imposing a gross receipts tax on parking lot businesses and eliminating the per parking space tax.

The people of the City of El Segundo ordain as follows:

Section 1.

Section 5.08.527, entitled “PARKING LOTS,” of Chapter 5.08, entitled “BUSINESS LICENSE SCHEDULE,” of Title 5, entitled “BUSINESS REGULATIONS AND LICENSING,” of the El Segundo Municipal Code is hereby amended to read as follows:

5.08.527
Parking Lots.

Every person engaged in the business of operating a parking lot in the City for vehicles shall pay a business license tax of ten percent (10%) of the annual gross receipts generated from the operation of the parking lot. For purposes of this section, the term "gross receipts" shall mean gross income, as defined in the Internal Revenue Code. "Gross receipts" shall not include amounts received under a commercial lease whether or not received as rent or separately assessed. The business license tax imposed by this section shall not apply to gross receipts attributable to: employee, theater patron, restaurant patron, retail patron, hotel patron, and validated parking; whether self or valet parking, for business establishments located within the City.

Section 2. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this ordinance or any part thereof.

Section 3. The City Clerk shall certify to the passage and adoption of this Ordinance and enter it into the book of original Ordinances.

Section 4. The City Clerk shall publish or post the ordinance according to law.