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C CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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From: Rachel Clark, City Clerk
Subject: An Ordinance of the City of
San Bernardino amending Section
5.04.525(D) of the SBMC and adding
Section 5.04.525(H) to the SBMC
relating to Business Registration fees
based on gross receipts.
M/CC Meeting Date: 9/18/06
Dept: City Clerk
Date: 9/13/06
Synopsis of Previous Council Action:
Ordinance MC-935, 4-17-95
Recommended Motion:
That said Ordinance be laid over for final adoption.
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Signature
Contact person: ~inrly RII""hh.r
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Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.)
(Arrt n~c:("rirtinn)
Finance:
Council Notes:
Agenda Item No.
:;:24
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C CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
An Ordinance of the City of San Bernardino amending Section 5.04.525(D) of the San
Bernardino Municipal Code and adding Section 5.04.525(H) to the San Bernardino
Municipal Code relating to Business Registration fees based on gross receipts.
Background:
At the direction ofthe City Manager's Office, the City Clerk's Office analyzed the fiscal
impact of placing a $10,000 cap on business registration fees for motor vehicle sales in the
City of San Bernardino. In August of 2001 a survey of surrounding cities was conducted
relating to fees charged to auto dealerships. Each city was contacted again in August 2006
and the rates have not changed, with the exception of Riverside, whose cap is adjusted
annually according to the CPI. Survey results are attached as Exhibit #1.
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Currently, there are 17 businesses categorized as "New Motor Vehicle Sales" and 43
businesses under the category of "Used Motor Vehicle Sales". The 43 businesses selling
used vehicles would not be affected by a $10,000 cap. There would be 9 dealers selling new
vehicles that would be affected should a cap be approved.
It is proposed that the $10,000 cap be adjusted annually, upward or downward, equivalent
to the most recent change in the annual average of the CPI or five percent, whichever is
less. This change would become effective January 1, 2007. An amendment to Resolution
96-168, which sets Business Registration fees, will be brought forward to Council following
the adoption of the proposed Ordinance.
Financial Impact:
Based on business registration fees paid during the last renewal period, business
registration revenue will be reduced by $82,000.
Recommendation:
That said Ordinance by laid over for final adoption.
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Business Registration Fee Data
Car Dealerships
August 17,2001
CITY FEE GROSS OF $41,000,000
I. Colton See Attachment # 1 $6,000
Has a cap of $6000
without caD $8,600
2. Fontana $50,000 or less $50 fee $10,287.50
More than $50,000 - $50
plus .25/ M (no cap)
3. Lorna Linda $15 processing fee plus .30 $12,315.00
per M (no cap)
4. Ontario .20 per thousand + $50 fee $8,250.00
(no cap)
5. Rancho Cucamonga See Attachment # 2 $6,019.25
(no cap)
6. Redlands $12 for 1" 5,000 $24,609.00
$3.00 per each additional
$5,000 (no cap)
7. Rialto See Attachment #3 $10,250.00
(no cap)
8. Riverside $83.50 for 1st $50,000 $4.006.75
next 700,000 - .43/M
$750,000 - .09/M
Cap is $5,425.50 adj/w CPI To exceed cap gross would
need to be over $56,000.000
9. San Bernardino .25 per thousand Minimum $10,250.00
$60.00
.It!
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I ORDINANCE NO.
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION
3 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS.
4
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
5 BERNARDINO DO ORDAIN AS FOLLOWS:
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SECTION 1. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525(D) is
amended to now read as follows:
"D. Wholesale Sales and Telephone Companies. Every person, firm, or
corporation conducting, carrying on or managing a business consisting
principally of operating a telephone company, selling goods, wares or
merchandise at wholesale, other than manufacturing and selling goods at
wholesale; selling at wholesale hydrocarbon, lubricating oil or gasoline, and not
otherwise specifically covered by other provisions ofthis Chapter, shall pay a fee
established by resolution of the Mayor and Common Council."
SECTION 2. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525 is hereby
14 amended by adding subsection H at the end of said section to read as follows:
15 "H. Motor Vehicle Sales - New and Used. Every person, firm, or corporation
conducting, carrying on, or managing a business consisting principally of selling
16 new and/or used motor vehicles, whether at retail or wholesale, including the
sale of parts and services, and not covered by other provisions of this Chapter,
17 shall pay a fee established by resolution of the Mayor and Common Council."
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SDE/edlOrdinances[BusinessRegistration.Ord.wpd]
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION
2 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS.
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I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and
5 Common Council of the City of San Bernardino at a
6 of _, 2006, by the following vote, to wit:
meeting thereof, held on the _ day
7 Council Members:
AYES
NAYS
ABSTAIN
ABSENT
8 ESTRADA
9 BAXTER
10 VACANT
II DERRY
12 KELLEY
13 JOHNSON
14 MCCAMMACK
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Rachel G. Clark, City Clerk
The foregoing Ordinance is hereby approved this _ day of
,2006.
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Patrick J. Morris, Mayor
City of San Bernardino
Approved as to Form:
23 James F. Pemnan, City Attorney
SDE/ed/Ordinances[BusinessRegistration.Ord. wpd]
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I ORDINANCE NO.
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION
3 5.04.525(11) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS.
4
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
5 BERNARDINO DO ORDAIN AS FOLLOWS:
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SECTION 1. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525(D) is
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amended to now read as follows:
"D. Wholesale Sales and Telephone Companies. Every person, firm, or
corporation conducting, carrying on or managing a business consisting
principally of operating a telephone company, selling goods, wares or
merchandise at wholesale, other than manufacturing and selling goods at
wholesale; selling at wholesale hydrocarbon, lubricating oil or gasoline, and not
otherwise specifically covered by other provisions of this Chapter, shall pay a fee
established by resolution of the Mayor and Common Council."
13 SECTION 2. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525 is hereby
14 amended by adding subsection H at the end of said section to read as follows:
15 "H. Motor Vehicle Sales - New and Used. Every person, firm, or corporation
conducting, carrying on, or managing a business consisting principally of selling
16 new and/or used motor vehicles, whether at retail or wholesale, including the
sale of parts and services, and not covered by other provisions of this Chapter,
17 shall pay a fee established by resolution of the Mayor and Common Council."
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SDE/ed/Ordinances[BusinessRegistration.Ord.wpd]
No,J~
q}/~06
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION
2 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS.
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I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and
5 Common Council of the City of San Bernardino at a
6 of _, 2006, by the following vote, to wit:
meeting thereof, held on the _ day
7 Council Members:
AYES
NAYS
ABSTAIN
ABSENT
8 ESTRADA
9 BAXTER
10 VACANT
11 DERRY
12 KELLEY
13 JOHNSON
14 MCCAMMACK
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Rachel G. Clark, City Clerk
The foregoing Ordinance is hereby approved this _ day of
,2006.
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to Form:
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es F. Penman, City Attorney
SDE/ed/Ordinances[BusinessRegistration.Ord.wpd]
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