Staff recommends adoption of the proposed amendment to Chapter 14 Articles II and III Code of Ordinance.
The proposed ordinance changes will ensure compliance with the recently adopted changes to Chapter 205 of the Florida Statutes. The changes clarify that these charges are business taxes only and cannot be used as a regulatory tool. The city cannot impose any conditions upon acceptance of the tax. All non-compliance issues, such as zoning, housing and fire inspection issues, must now be submitted to Code Enforcement for civil action.
The proposed changes will not affect the current fee schedule. References to Local Occupational License Tax will be replaced with Local Business Tax and all parts of the existing ordinance in conflict with the change will be repealed.
1. Adopt the ordinance as presented; or
2. Such alternative action as the Commission may deem appropriate.
Fiscal Impact: None
Prepared by: __________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. __________________
Project No. ___________________
WF No. ______________________
AN ORDINANCE AMENDING ARTICLES II AND III OF CHAPTER 14 OF THE CODE OF ORDINANCES OF THE CITY OF LEESBURG, FLORIDA, PERTAINING TO MUNICIPAL OCCUPATIONAL LICENSE TAXES AND TAXES ON COIN OPERATED MACHINES; CONFORMING THE ORDINANCES TO NEW FLORIDA STATUTES BY CHANGING THE NAME OF THE TAX TO LOCAL BUSINESS TAX AND MAKING CORRESPONDING CHANGES TO THE WORDING OF THE ORDINANCES; REPEALING PROVISIONS HERETOFORE PURPORTING TO AUTHORIZE REVOCATION OF AN OCCUPATIONAL LICENSE; DISCLAIMING ANY BINDING EFFECT ON PERMITTED ZONING, LAND USE OR OTHER REGULATORY POWERS OF THE CITY BY WAY OF ISSUANCE OF A RECEIPT FOR PAYMENT OF THE LOCAL BUSINESS TAX; REPEALING ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR A SAVINGS CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:
I Articles II and III of Chapter 14 of the Code of Ordinances of the City of Leesburg are hereby amended in their entirety to read as set forth in this ordinance. All ordinances or parts of ordinances in conflict with this ordinance shall be repealed as of the effective date of this ordinance.
II. Article II of the Code of Ordinances of the City of Leesburg, Florida is hereby amended to read as follows:
DIVISION ONE. GENERALLY.
Sec. 14-16. Payment of Local Business Tax required in order to engage in business, profession or occupation etc.
No person shall engage in any trade or business, profession or occupation, amusement or industry within the City of Leesburg, Florida, without first having paid a Local Business Tax as required by this Chapter, [wp1]the amount of which is prescribed herein. A business with more than one location or branch within the City shall pay a separate tax for each such location. Any of the following shall be considered prima facie evidence that a trade or business, profession or occupation, amusement or industry is being engaged in within the City of Leesburg, for which payment of the tax is required: any sign, advertising, occupancy of a commercial building or property, directory listing or other activity of any nature, indicating that a trade or business, profession or occupation, amusement or industry is being conducted at a location within the municipal limits of the City of Leesburg, Florida. It is the intent of this ordinance to impose the tax levied herein on each and every trade or business, profession or occupation, amusement or industry which is subject to taxation by the City of Leesburg under §205.042, Florida Statutes as now in existence or as hereafter amended, or under any successor statute.
Sec. 14-17. Exemptions.
Any owner of a trade or business, profession or occupation, amusement or industry which is exempt from the local business tax under Chapter 205, Florida Statutes, shall not be required to pay the tax imposed hereunder but shall, prior to engaging in any trade or business, profession or occupation, amusement or industry, submit proof of the exemption to the Finance Director, including but not limited to: a copy of the letter from the Internal Revenue Service specifying the exempt status of the owner under the Internal Revenue Code; if the owner is a corporation, a copy of the nonprofit charter from the Secretary of State, State of Florida; and a copy of the exemption from Florida State Sales Taxes.
Sec. 14-18. Application forms.
The Finance Director shall prescribe a form to be submitted by each applicant seeking to pay the local business tax under Article II of this Chapter. The application fee shall be in addition to the tax itself. At a minimum, the form shall elicit the following information:
A. the name and street address of the business
B. the name and address of the owner of the business, whether such owner is an individual, a corporation, a partnership, or some other entity, the nature of which shall be specified by the applicant in the application
C. if the applicant is not a natural person, the name and address of the registered agent for the applicant or of some other natural person upon whom service of process would bind the applicant under Florida law
D. the telephone numbers of the business and the owner
E. the social security number and driver license number (if any) of the owner of the business if it is an individual, or the Federal Tax Identification Number and Florida State Sales Tax Exemption numbers of any applicant which is not a natural person
F. an after hours number at which the owner or a representative of the owner may be contacted in the event of an emergency
G. whether the business location is rented or owned by the applicant, and if rented, the name, address and telephone number of the owner of the business location
H. if the business has inventory of any kind, the dollar value of such inventory at the time of filing of the application
I. whether the trade or business, profession or occupation, amusement or industry to be carried on requires issuance of a license or permit by the State of Florida, and if so, proof that such license or permit is held by the applicant and is active and current must be submitted at the time of the application. Where (as in the case of a professional office or similar activity) more than one person will be licensed by the State of Florida, all persons working at the business location who are required to have such a State of Florida license shall submit proof that the required State license has been obtained, along with the application.
Failure to submit a completed application with all required additional information shall be grounds for refusal by the Finance Director to accept payment of the local business tax. All information required by the application prepared by the Finance Director must be submitted whether or not listed above. The itemization contained in this section is intended to set forth minimum requirements and shall not be construed as a limitation on the ability of the Finance Director to require additional information in the application if deemed necessary to the administration of the local business tax.
Completed applications will be routed to the Building Department, the Zoning Department, and the Fire Department, for necessary inspections. No business shall be carried on until the local business tax has been paid in full.
Sec. 14-19. Posting.
All persons engaged in or carrying on any trade or business, profession or occupation, amusement or industry within the City of Leesburg shall post the receipt evidencing payment of the local business tax conspicuously in their place of business, if the business has a location within the City of Leesburg, unless such posting is impractical as in the case of outdoor markets or apartments without an on site office. Where posting is impractical or where the business owner/operator has no permanent business location within the City of Leesburg, it shall be the duty of the business owner to produce and exhibit the receipt upon demand by any official of the office of the Finance Director, any Leesburg Police Officer, or any Leesburg Code Enforcement Officer.
Sec. 14-20. Taxable year; payment for partial year.,
The taxable year with respect to the local business tax shall begin on October 1 of each year and terminate on September 30 of the succeeding year, on which date the receipt for payment of the tax shall expire unless renewed in accordance with this ordinance. No receipt shall be issued or effective for more than one year. No receipt shall be issued or effective for more than one year. No receipt shall be issued for less than one year prior to April 1 of any year, after which date a receipt may be issued for a half year upon payment of one half the amount of the amount of the annual local business tax imposed hereunder.
Sec. 14-21. Transfer of business.
A receipt and the rights accruine thereunder to perate the business may be transferred in connection with a bona fide sale or other transfer of the trade or business, profession or occupation, amusement or industry for which it was issued, a bona fide sale or other transfer of the stock in trade of the business, or a transfer of the business from one location to another within the City of Leesburg. To obtain a transfer, the business owner must present the bill of sale for the business together with the original receipt of the transferor and a new application in the form specified in § I 4~1 8 of this Chapter, and pay a transfer fee of 10% of the amount of the local business tax, not to exceed $26.25 nor to be less than $3.00. The transferred receipt shall not be good for any longer time or in any other place than that for which it is issued. After approval of the transfer, the newly issued receipt shall be of the same force and effect as the original.
Sec. 14-22. Legal Effect of payment of Local Business Tax.
The local business tax imposed by this ordinance is a revenue raising measure only, and not a regulatory fee. As such, payment of the local business tax and issuance by the City of a receipt for payment of the tax shall have no binding effect on the City insofar as enforcement of any of its codes or ordinances pertaining to the actual operation of the business, including but not limited to zoning and land use codes, the comprehensive plan, building codes, life safety and fire codes, and sign codes or ordinances. Neither acceptance of the tax nor issuance of the receipt for payment of the tax shall be deemed to prevent or impede the City from acting to enforce any code or ordinance pertaining to the business or the location or structure where it is being operated or intended to be operated, and shall not be interpreted to authorize the operation of the business in any particular location. The receipt shall constitute only evidence that the local business tax has been paid, and shall have no other force or effect whatsoever. In addition issuance of a receipt for payment of the local business tax shall not excuse compliance with any other ordinances requiring a regulatory license or permit to carry on a specific trade, business, profession or activity within the City.
Sec. 14-23. Violations and penalties.
(a) For failure to pay the local business tax by the expiration date of the receipt issued in the prior year, a penalty shall be imposed of 10% of the applicable tax amount for the first month and 5% of such fee for each succeeding month during which the receipt is not renewed, with a maximum penalty of 25% of the applicable fee. Any such penalties must be paid in full, in addition to the tax itself, prior to issuance of the renewal receipt. Any business found to have been in operation without a valid, current receipt, shall pay, in addition to the other penalties imposed herein or by the Code Enforcement Board, a tax in the amount imposed by this ordinance for the current year on the particular type of business, for each taxable year or portion of a taxable year during which it can be established that the business operated without paying the local business tax.
(b) Any violation of this ordinance may be referred to the Code Enforcement Special Magistrate for appropriate disposition in accordance with the laws and rules governing such proceedings. If a case is referred to the Code Enforcement Special Magistrate, then any penalty imposed by the Magistrate must be paid in full prior to issuance of a receipt for payment of the local business tax, along with payment of the tax itself and payment of all penalties which may have been imposed under subsection (a) of this section, and an administrative fee of $26.25 to offset the additional costs incurred in referring the case to the Special Magistrate for disposition.
(c) If any application for payment of the local business tax or renewal of a receipt for such payment does not contain all the required information necessary to a determination of the amount of tax to be imposed on the applying business, then the Finance Director shall have the option either to withhold issuance of the receipt or renewal receipt entirely, or to issue the receipt or renewal receipt at the highest tax rate which could, under all known facts and circumstances, be applied to the business.
Sec. 14-24. Businesses required to furnish information.
Not more often than annually, the Finance Director may send a questionnaire to each business which paid the local business tax during the year, requesting information on the nature and type of the business being carried on, and for businesses in the retail category, requesting information on the nature, extent and value (at the cost of the business) of the inventory held by it for resale, in order to permit accurate computation of the tax due from each business at the time of renewal. Any business which fails to return the questionnaire by the deadline prescribed in it, which returns an incomplete questionnaire, or which does not receive the questionnaire due to failure to notify the Finance Director of a change in address, shall in the discretion of the Finance Director be denied a renewal receipt or shall be sent a renewal receipt at the rate charged to the business in the prior year, and in addition the business shall be charged a penalty for failing to provide information, which shall be equal a minimum of $26.25 for any tax up to and including $99.99, and a minimum of $26.25 plus 25% of the amount of the local business tax for the prior year, for a business paying a tax in excess of $99.99.
Sec. 14-25. Definitions.
As used in this ordinance, the terms listed below shall have the meanings shown:
Inventory as used in this ordinance shall refer to all stock in trade or other tangible items of any nature or description held by the business for sale, whether to the public or on a wholesale basis. The dollar value of inventory shall be computed based on the average yearly inventory of the business.
Coin operated device shall refer to any vending machine, coin operated pool table, video game, pinball machine or other amusement device the use of which is initiated by the insertion of coin or currency into the device by the patron thereof, any juke box or other device intended to provide music or other audio amusement the use of which is initiated by the insertion of coin or currency into the device by the patron thereof, or any other device the use of which is initiated by the insertion of coin or currency into the device by the patron thereof, which is similar in design or function to those described specifically within this paragraph, excluding however coin operated telephones.
DIVISION TWO. SCHEDULE OF TAXES DUE.
Sec. 14-36. Businesses and occupations enumerated; amount of tax to be paid.
The following enumerated local business taxes shall be paid to the City of Leesburg by the persons engaging in or managing or transacting the listed occupations or professions unless otherwise specified, and shall be paid annually unless otherwise stated:
I. AGENCY OR BUREAU (other than real property)
a. Any agency or bureau, including but not limited to
credit, employment, advertising, or collection $42.00
b. Detective/patrol guard $42.00
c. Talent $42.00
d. Travel . $42.00
e. Rental . $42.00
f. Bail Bondsman $42.00
g. Unspecified . $42.00
II. AVIATION SERVICES
a. Sales - fuel, oil or petroleum products .. $26.25
b. Repair - aircraft, airframe, power plant, instruments
or avionics . $26.25
c. Hangar rental $26.25
d. Instructions .. $26.25
e. Rental - charter, air taxi, air ambulance ... $26.25
f. Aviation testing, electronic or written .. $26.25
a. Auction house/company . $52.50
b. Auctioneer . $42.00
IV. BANKS, SAVINGS & LOANS, FINANCE COMPANIES,
a. Banks, Savings & Loans, finance companies, credit unions $105.00
(I) each ATM not located on main premises .. $26.25
(2) each branch or drive through not located
on main premises $52.50
b. Finance & investment services, mortgage & loan brokers,
Stock or bond broker .. $42.00
V. BUSINESS OFFICE, excluding offices holding professional licenses
issued by the State of Florida .. $42.00
VI. COIN OPERATED MACHINES (not including laundry & dry cleaners)
a. Distributor $42.00
b. Game machines - each (video, kiddie ride etc.) ... $26.25
c. Juke boxes . . $26.25
d. Vending machines - per machine $7.50
VII. DAY CARE CENTER, KINDERGARTEN, SCHOOL, NURSERY $31.50
VIII. EVENT PERMIT, ONE-TIME
Trade shows, sporting events, and similar programs on a one time basis (each applicant shall be required to submit proof of insurance, a layout of the proposed facility, and a
parking plan) . $26.25 per day
IX. FITNESS CENTERS, HEALTH STUDIOS $42.00
X. FORTUNE TELLER, CLAIRVOYANT, PALMIST,
PHRENOLOGIST, DIVINE HEALER, ASTROLOGER .. $42.00
XI. HOTELS, MOTELS, APARTMENTS, BED & BREAKFAST, ROOMING HOUSES, MOBILE HOME PARKS
a. Hotels, motels, bed & breakfast, rooming houses, apartments (transient or long term rentals)
(1) 3 to 15 units $26.25
(2) 16 to 50 units . $42.00
(3) over 50 units .. $73.50
b. Mobile home parks
c. A property owner who owns only a single rental unit, which is rented or offered for rent for less than eighteen (18) months during the period it is owned by the property owner, shall not be deemed a business required to pay the local business tax.
XII. JUNK . $52.50
XIII. MACHINE, WELDING & SHEET METAL SHOP . $42.00
a. Less than 20 employees . $42.00
b. 20 or more employees . $105.00
XV. MARINA $42.00
XVI. MEDICAL SERVICES/FACILITIES $42.00
a. Less than 20 employees ... $42.00
b. 20 or more employees $105.00
XVIII. NURSING & CONVALESCENT HOMES
(I) less than 61 licensed beds . $42.00
(2) 61 or more licensed beds . $63.00
b. Congregate care
(1) less than 10 licensed beds $31.50
(2) 10 or more licensed beds . $63.00
XIX. PACKING, PROCESSING, SALES
a. Citrus & produce packing and processing
(1) less than 20 employees . $42.00
(2) 20 or more employees .. $63.00
b. Fruit & vegetable sales (permanent place of business) $42.00
(1) less than 20 employees . $42.00
(2) 20 or more employees .. $63.00
XX. PAWN BROKERS . $52.50
XXI. PEDDLERS, SOLICITORS, EXHIBITORS stationary . $31.50
XXII. PERSONAL SERVICES - any personal service such as, but not limited to Artist, Dry Cleaners, Florist, Handyman, Home Window Tinting, Maid Service, Photography, Shoe Repair, Tailor, Upholsterer, Yardwork etc.
a. Home location $26.25
b. Business location
(1) Artist, photographer, shoe repair, upholsterer,
florist ... $26.25
(2) All others .. $42.00
c. Ballroom dance studios . $42.00
d. Laundry (self service) .. $7.50 per coin operated machine
e. Janitorial .. $42.00
f. Interior decorator $42.00
XXIII. PROFESSIONAL SERVICES - each person holding a state license must show
license and obtain a City license. Professional persons licensed from the State of Florida are exempt from business office licensing.
a. Accountant, CPA, Auditor . $42.00
b. Architect $42.00
d. Beauty and/or barber shop
(1) Cosmetologist . $26.25
(2) Nail technician $26.25
(3) Barber/stylist ... $26.25
(4) Facialist .. $26.25
(5) Tanning beds within other business $26.25
(1) General $42.00
(2) House moving .. $42.00
(3) Electrical . $42.00
(4) Plumbing $42.00
(5) Paper hanging, painting . $31.50
(6) Heating & air conditioning . $42.00
(7) Sidewalk & pavement . $42.00
(8) Unspecified . $42.00
(1) Marriage and family . $42.00
(2) Mental health $42.00
(3) Other . $42.00
g. Engineer, surveyor .. $42.00
h. Funeral director . $42.00
i. Insurance (life, health, tide, vehicle etc.)
(1) Company .. $52.50
(2) Agent or firm $26.25
(3) Adjuster $26.25
j. Masseur . $26.25
k. Pest control .. $42.00
1. Physician (including anyone engaged in art of healing) .. $52.50
m. (1) Real estate
(A) each licensed broker/owner/manager $42.00
(B) each licensed sales associate .. $26.25
(2) Property management, leasing agency, rent collection
(A) Property manager . $42.00
(B) Property agent . $26.25
n. Tanning salon $42.00
o. Veterinarian . $31.50
p. Any other profession not listed . $42.00
XXIV RADIO & TELEVISION STATIONS . $42.00
XXV RECREATIONAL FACILITIES
a. Carnival or circus, per week $78.75
(1) Less than 500 seats $52.50
(2) 500 or more seats ..... $105.00
c. Bowling alleys - per lane $7.50
d. Pool Halls $42.00 plus $7.50 per table
e. Dance Hall $42.00
f. Skating rink .. $42.00
g. Watercraft rentals . $42.00 plus $7.50 per craft
h. Recreational vehicle park ..... $52.50 plus $1.50 per space
XXVI RESTAURANT, CATERER, BAKERY
a. Seating capacity 1-20 $26.25
b. Seating capacity 21-30 ... $42.00
c. Seating capacity 31-40 $52.50
d. Seating capacity over 40 $73.50
e. Deli/caterer or bakery without seating $31.50
XXVII. SALES, RETAIL/WHOLESALE
a. Sales without inventory .. $42.00
b. Sales with inventory (including markets, fish and/or meat)
(1) $2.00 per thousand up to $3 million of inventory
(2) $1.00 per thousand, $3 million to $5 million of inventory
(3) $0.50 per thousand, over $5 million of inventory
XXVIII SERVICES, OTHER THAN REPAIR
a. Computer $42.00
b. Consultant $42.00
c. Express company $157.50
d. Printer $42.00
e. Sign painter $31.50
f. Telemarketing $42.00
g.Warehouse and storage $42.00
h. Services other than listed $42.00
Motor vehicles per hire $42.00 plus $12.50 per vehicle
XXX. UNCLASSIFIED - any person, firm or corporation doing business in
the City or having agents or representatives established which is not
specifically enumerated elsewhere in this ordinance $42.00 XXXI. UTILITIES
a. Telephone $236.25
b. Telegraph $42.00
c. Cable television $236.25
a. Detailing $31.50
b. Painting $42.00
c. Repairs (certificate required) $42.00
d. Car Wash $42.00
e. Fuel station - per nozzle or outlet $7.50
f. Gasoline & oil distributor, per truck $31.50
g. Towing service $42.00
h. Window tinting $42.00
i. Oil/fuel agent $52.50
Anything in the foregoing fee schedule notwithstanding, local business tax shall be imposed which would exceed the lessor of the maximum fee the City is permitted to levy under §205.0535, Fla. Stat. (2006) or any successor statute, or the sum of $750.00. If the tax which would otherwise be imposed by this ordinance exceeds the maximum for a business, then the business shall be charged the maximum fee permitted hereby.
III. Article II of the Code of Ordinances of the City of Leesburg, Florida is hereby amended in its entirety to read as follows:
ARTICLE III. AMUSEMENTS.
Sec. 14-51. Coin operated amusement devices taxes due.
Every person who operates for profit any coin operated device within the City of Leesburg shall pay a local business tax as set forth in Part II above for each such machine, contrivance or device. Such tax shall not be construed to authorize the use of any such machine, contrivance or device for gambling or as a game of chance.
IV. If any portion of this ordinance is found to be invalid, then to the extent possible without frustrating the intent of this ordinance, the invalidated portion shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it had been enacted without the portion found invalid.
V. This ordinance shall take effect upon its passage and adoption according to law.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at its regular meeting held on the _23rd__ day of October , 2006.