AGENDA MEMORANDUM

 

Meeting Date:           June 11, 2007

 

From:                          Bill Pfeilsticker, Finance Director

 

Subject:                      Ordinance to increase Business Tax (Previously known as Occupational License Tax) rates

 

 

Staff Recommendation:

Staff recommends that Business Tax rates for all categories be increased 5% as described in the proposed ordinance.            

 

Analysis:

According to §205.0535 of the Code of Ordinances, the City is authorized to increase the Business Tax rates by no more than 5%, every other year beginning in 1995, by a vote of a majority plus one of the City Commission. 

 

The City last increased its Business Tax rates by Ordinance 05-43 on May 9, 2005. Due to exponential growth, the cost of providing services to the citizens and businesses of Leesburg has increased substantially since 2005, while reported Consumer Price Index rates increased 3.4% in 2005 and 3.2% in 2006.  A 5% increase in Business Tax rates is reasonable and justifiable.

 

Options:        

1.   Adopt the ordinance as presented; or

2.   Such alternative action as the Commission may deem appropriate.           

 

Fiscal Impact: If the ordinance is adopted, it is estimated that the Business Tax annual revenue will increase $10,360 to $217,551.

 

 Submission Date and Time:    6/8/07 10:31 AM____

 

Department: ______________________

Prepared by:  __________________                     

Attachments:  Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Newspapers:

_________________________________                                                    

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. 001-0000-321-01-00

 

Project No. _

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 


ORDINANCE NO.                                                

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, PERTAINING TO RATES FOR BUSINESS TAXES (FORMERLY KNOWN AS OCCUPATIONAL LICENSES); IMPLEMENTING A FIVE PERCENT (5%) INCREASE IN ALL CATEGORIES AS PERMITTED BY §205.0535, FLORIDA STATUTES; SETTING FORTH LEGISLATIVE FINDINGS; REPEALING CONFLICTING ORDINANCES; PROVIDING A SEVERANCE CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

 

 

            WHEREAS, the City of Leesburg has enacted a business tax (formerly known as Business Tax) ordinance, and took advantage of the opportunity afforded by §205.0535, Fla. Stat. to reclassify businesses and establish new rate structures by October 1, 1995, and

 

            WHEREAS, under §205.0535, the City is able to increase by ordinance the rates for its business tax by no more than 5%, every other year, by a vote of a majority plus one of the City Commission, and

 

            WHEREAS, the City last increased its business tax rates by adopting Ordinance 05-43 on May 9, 2005, and

 

            WHEREAS, the Leesburg has experienced exponential growth causing substantial increases in cost of providing services to the citizens and businesses of Leesburg,

           

WHEREAS, based on the Consumer Price Index increases of 3.4% in 2005 and 3.2% in 2006, a 5% increase in business tax rates is reasonable and justifiable,

 

            NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

 

SECTION I.

 

§14 – 36 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended in its entirety to read as set forth below:

 

Sec. 14 – 36. Businesses and occupations enumerated; amount of tax to be paid.

 

The following enumerated occupations license 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:

 

Fee

 

I.     AGENCY OR BUREAU (other than real property):

 

a.     Any agency or bureau, including but not limited to credit, employment, advertising, or collection . . . $44.10

 

b.         Detective/patrol guard . . . 44.10

 

c.         Talent . . . 44.10

 

d.         Travel . . . 44.10

 

e.         Rental . . . 44.10

 

f.          Bail bondsman . . . 44.10

 

g.         Unspecified . . . 44.10

 

II.     AVIATION SERVICES:

 

a.         Sales--fuel, oil or petroleum products . . . 27.57

 

b.         Repair--aircraft, airframe, power plant, instruments or avionics . . . 27.57

 

c.         Hangar rental . . . 27.57

 

d.         Instructions . . . 27.57

 

e.         Rental--charter, air taxi, air ambulance . . . 27.57

 

f.          Aviation testing, electronic or written . . . 27.57

 

III.     AUCTIONEER:

 

a.         Auction house/company . . . 55.13

 

b.         Auctioneer . . . 44.10

 

IV.     BANKS, SAVINGS AND LOANS, FINANCE COMPANIES, CREDIT UNIONS:

 

a.         Banks, Savings and Loans, finance companies, credit unions . . . 110.25

 

(1)    Each ATM not located on main premises . . . 27.57

 

(2)    Each branch or drive-through not located on main premises . . . 55.13

 

b.         Finance and investment services, mortgage and loan brokers, stock or bond broker . . . 44.10

 

V.        BUSINESS OFFICE, excluding offices holding professional licenses issued by the State of Florida . . . 44.10

 

VI.       COIN-OPERATED MACHINES (not including laundry cleaners):

 

a.     Distributor . . . 44.10

 

b.     Game machines each (video, kiddie ride etc.) . . . 27.57

 

c.     Juke boxes . . . 27.57

 

d.     Vending machines, per machine . . . 7.88

 

VII.    DAY CARE CENTER, KINDERGARTEN, SCHOOL, NURSERY . . . 33.08

 

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) . . . 27.57 per day

 

IX.     FITNESS CENTERS, HEALTH STUDIOS . . . 44.10

 

X.     FORTUNE TELLER, CLAIRVOYANT, PALMIST, PHRENOLOGIST, DIVINE HEALER, ASTROLOGER . . . 44.10

 

XI.     HOTELS, MOTELS, APARTMENTS, BED AND BREAKFAST INNS, ROOMING HOUSES, MOBILE HOME PARKS, DUPLEXES, TRIPLEXES AND SINGLE FAMILY HOMES RENTED TO PERSONS OTHER THAN THE OWNER THEREOF:

 

a.     Hotels, motels, bed and breakfast, rooming houses, apartments (transient or long term rentals):

 

(1)     1 to 15 units . . . 27.57

 

(2)     16 to 50 units . . . 44.10

 

(3)     Over 50 units . . . 77.18

 

b.     Mobile home parks . . . 55.13

 

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 have an occupational license.

 

XII.  JUNK DEALERS (junk yard must be enclosed with attractive fence of a material which will keep the junk hidden from public view) . . . 55.13

 

XIII.   MACHINE, WELDING AND SHEET METAL SHOP . . . 44.10

 

XIV.   MANUFACTURING:

 

a.     Less than 20 employees . . . 44.10

 

b.     20 or more employees . . . 110.25

 

XV.     MARINA . . . 44.10

 

XVI.   MEDICAL SERVICES/FACILITIES . . . 44.10

 

XVII. NEWSPAPERS:

 

a.     Less than 20 employees . . . 44.10

 

b.     20 or more employees . . . 110.25

 

XVIII.  NURSING AND CONVALESCENT HOMES:

 

a.     Nursing:

 

(1)     Less than 61 licensed beds . . . 44.10

 

(2)     61 or more licensed beds . . . 66.15

 

b.     Congregate care:

 

(1)     Less than 10 licensed beds . . . 33.08

 

(2)     10 or more licensed beds . . . 66.15

 

XIX.    PACKING, PROCESSING, SALES:

 

a.     Citrus and produce packing and processing:

 

(1)     Less than 20 employees . . . 44.10

 

(2)     20 or more employees . . . 66.15

 

b.     Fruit and vegetable sales (permanent place of business) . . . 44.10

 

c.     Canning factory:

 

(1)     Less than 20 employees . . . 44.10

 

(2)     20 or more employees . . . 66.15

 

XX.     PAWNBROKERS . . . 55.13

 

XXI.    PEDDLERS, SOLICITORS, EXHIBITORS--Stationary . . . 33.08

 

(Must obtain clearance from planning and zoning department and written permission from property owner)

 

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 . . . 27.57

 

b.     Business location:

 

(1)     Artist, photographer, shoe repair, upholsterer, florist . . . 27.57

 

(2)     All others . . . 44.10

 

c.     Ballroom dance studios . . . 44.10

 

d.     Laundry (self service) per coin operated machine . . . 7.88

 

e.     Janitorial . . . 44.10

 

f.     Interior decorator . . . 44.10

 

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 . . . 44.10

 

b.     Architect . . . 44.10

 

c.     Attorney . . . 55.13

 

d.     Beauty and/or barber shop:

 

(1)     Cosmetologist . . . 27.57

 

(2)     Nail technician . . . 27.57

 

(3)     Barber/stylist . . . 27.57

 

(4)     Facialist . . . 27.57

 

(5)     Tanning beds within other business . . . 27.57

 

e.     Contractors:

 

(1)     General . . . 44.10

 

(2)     House moving (bond required) . . . 44.10

 

(3)     Electrical . . . 44.10

 

(4)     Plumbing . . . 44.10

 

(5)     Paper hanging, painting . . . 33.08

 

(6)     Heating and air conditioning . . . 44.10

 

(7)     Sidewalk and pavement . . . 44.10

 

(8)     Unspecified . . . 44.10

 

f.     Counselor:

 

(1)     Marriage and family . . . 44.10

 

(2)     Mental health . . . 44.10

 

(3)     Other . . . 44.10

 

g.     Engineer, surveyor . . . 44.10

 

h.     Funeral director . . . 44.10

 

i.     Insurance (life, health, title, vehicle etc.):

 

(1)     Company . . . 55.13

 

(2)     Agent or firm . . . 27.57

 

(3)     Adjuster . . . 27.57

 

j.     Masseur . . . 27.57

 

k.     Pest control . . . 44.10

 

l.     Physician (including anyone engaged in art of healing) . . . 55.13

 

m.     Real estate and property management:

 

(1)     Real estate:

 

(a)     Each license broker/owner/manager . . . 44.10

 

(b)     Each licensed sales associate . . . 27.57

 

(2)     Property management, leasing agency, rent collection:

 

(a)     Property manager . . . 44.10

 

(b)     Property agent . . . 27.57

 

n.     Tanning salon . . . 44.10

 

o.     Veterinarian . . . 33.08

 

p.     Any other profession not listed . . . 44.10

 

XXIV.  RADIO AND TELEVISION STATIONS . . . 44.10

 

XXV.   RECREATIONAL FACILITIES:

 

a.     Carnival or circus, per week . . . 82.69

 

b.     Theaters:

 

(1)     Less than 500 seats . . . 55.13

 

(2)     500 or more seats . . . 110.25

 

c.     Bowling alleys, per lane . . . 7.88

 

d.     Pool halls, plus $7.88 per table . . . 44.10

 

e.     Dance hall . . . 44.10

 

f.     Skating rink . . . 44.10

 

g.     Watercraft rentals, plus $7.88 per craft . . . 44.10

 

h.     Recreational vehicle park, plus $1.50 per space . . . 55.13

 

XXVI.     RESTAURANT, CATERER, BAKERY:

 

a.     Seating capacity 1--20 . . . 27.57

 

b.     Seating capacity 21--30 . . . 44.10

 

c.     Seating capacity 31--40 . . . 55.13

 

d.     Seating capacity over 40 . . . 77.18

 

e.     Deli/caterer or bakery without seating . . . 33.08

 

XXVII.     SALES, RETAIL/WHOLESALE:

 

a.     Sales without inventory . . . 44.10

 

b.     Sales with inventory (including markets, fish and/or meat):

            $2.00 per thousand dollars of inventory, up to the maximum fee allowed by this section.

 

XXVIII. SERVICES, OTHER THAN REPAIR:

 

a.     Computer . . . 44.10

 

b.     Consultant . . . 44.10

 

c.     Express company . . . 157.88

 

d.     Printer . . . 44.10

 

e.     Sign painter . . . 33.08

 

f.     Telemarketing . . . 44.10

 

g.     Warehouse and storage . . . 44.10

 

h.     Services other than listed . . . 44.10

 

XXIX. TRANSPORTATION:

 

Motor vehicles per hire, plus $12.50 per vehicle . . . 44.10

(requirements of Chapter 24 of Code of Ordinances must be met)

 

Motor vehicles per rent, plus $12.50 per vehicle . . . 44.10

 

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 article . . . 44.10

 

XXXI. UTILITIES:

 

a.     Telephone . . . 248.07

 

b.     Telegraph . . . 44.10

 

c.     Cable television . . . 227.57

 

XXXII. VEHICLES:

 

a.     Detailing . . . 33.08

 

b.     Painting . . . 44.10

 

c.     Repairs (certificate required) . . . 44.10

 

d.     Car wash . . . 44.10

 

e.     Fuel station per nozzle or outlet . . . 7.88

 

f.     Gasoline and oil distributor, per truck . . . 33.08

 

g.     Towing service . . . 44.10

 

h.     Window tinting . . . 44.10

 

i.     Oil/fuel agent . . . 55.13

 

Anything in the foregoing fee schedule notwithstanding, no license fee shall be imposed which would exceed, per license, the lesser of seven hundred fifty dollars ($750.00) or the maximum fee the city is permitted to levy under § 205.0535, Fla. Stat. (1993). If the fee which would otherwise be imposed by this section for a license exceeds the maximum fee set forth above, then the licensee shall be charged the maximum fee permitted hereunder for that license.

 

SECTION II.

 

If any portion of this ordinance is declared invalid or unenforceable, then to the extent it is possible to do so without destroying the overall intent and effect of this ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of this ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

 

SECTION III.

 

All ordinances or parts of ordinances which are in conflict with this ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of  the conflicting ordinances, in which case those ordinances so affected shall be hereby repealed in their entirety.

 

SECTION IV.

 

This ordinance shall become effective upon its passage and adoption according to law.

 

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the                    day of                                    , 2007.

 

 

THE CITY OF LEESBURG, FLORIDA

 

 

 

BY:                                                                 

Mayor

 

 

 

Attest:                                                                        

City Clerk