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CITY OF ~AN BERN()IDINO - REQUEST r::M COUNCIL ACTION
From:
Fred Wilson
Asst. City Administrator
Subject: Recommendation of Ways and Means
Committee relative to request
from Mr. Philip Kassel concerning
non-payment of Area Tax.
Dept:
Date: August 6, 1992
Synopsis of Previous Council action:
5/18/92
Original request by Mr. Kassel referred to Ways &
Means Committee.
6/10/92
7/29/92
Ways & Means Committee continued item to next meeting.
Ways and Means Committee recommended denial of request
'by Hr. Kaflsel to discontinue paying area tax.
Recommended motion:
That the recommendation of the Ways and Means Committee that no
change be made to the City's area tax and that Mr. Kassel's
request to be relieved of obligation to pay said tax, be denied.
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Contact person:
Fred Wilson
Phone:
5122
I
Supporting data attached: ves
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.l
(Acct. Descriotionl
Finance:
Council Notes:
75-0262
Agenda Item No 1'1
CITY OF SAN BERtCRDINO ... REQUEST r:JR COUNCIL ACTION
STAFF REPORT
The City received the attached letter dated April 27, 1992, from
Mr. Philip Kassel, Esq. requestinq to be relieved of the obliqation
of payinq the City's area tax. This request was heard by the Mayor
and Common Council at their May 18 Council Meetinq at which time it
was referred to the Ways and Means CQmmittee.
The area tax district was formed for the purpose of promotinq and
enhancinq the downtown area. Revenue for the district is derived
from a surcharqe on the business reqistration certificate which
ranqes from loot for retail to 25% . for professionals.
Approximately $165,307.66 was qenerated in area tax proceeds for FY
1991/92.
Of the area tax revenue collected from downtown businesses, 75% is
contributed to the parkinq district as the City's share of the
cost. The remaininq 25% of the tax revenue supports custodial
service, security, and special promotions for the downtown area.
If the area tax were eliminated, parkinq district assessments would
almost double. As an example, in 1991-92, estimated area tax
revenue for the district was $143,000 and estimated revenue from
assessments was $149,000, so assessments would have had to increase
almost $100% to cover the deficit. Additionally, the services
funded by the remaininq 25% would have been cut.
After considerinq this information, it was the recommendation of
the Ways and Means Committee that no chanqe be made to the area tax
and that Mr. Kassel's request be denied.
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April 27, 1992
OFFICE OF THE CITY CLERK
City of San Bernardino
P.O. Box l318
San Bernardino, CA 92402
Attn:
Licensing Division
Re:
Kassel and Kassel Law Firm
Account No. 020958
Dear Sirs:
I am enclosinq herewith our check for the sum of $938.75
coverinq our City license.
I have protested many times in the past for the improper and
unfair area tax which is included in this amount. The area tax is
$187.75.
I would ask that you kindly undertake to place my request to
be relieved of the area tax on whatever appropriate City agenda
there miqht be. If this requires an app~arance before the City
Counsel I wilr be happy to do so.
The area tax that we are referrinq to, started out
approximately 35 years ago relating to an orqanization called the
"Downtown Associates". This was a group of businessmen who are now
all either deceased or out of business. The purpose of passing the
area tax was to allow for advertising to brinq more customers to
the downtown area for shopping. This was before the placement of
the Carousel Mall.
The purpose for this area tax ceased approximately 25 years
ago yet the tax has continued to be collected.
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OFFICE OF THE CITY CLERK
City of San Bernardino
April 27, 1992
paqe two
This is a very unfair tax because it only applies to
businesses or law offices that are within a certain designated
area. Other law offices that practice on the east side of
Arrowhead Avenue do not pay the area. tax that I pay even though I'm
only approximately 200 feet from the boundary line.
The area tax never applied logically to our law office at its
inception since we did not advertise nor participate in advertising
at that time.
I would respectfully request being advised when I might appear
and take whatever appropriate action I could take in a hearing
before the City. I would ask to be advised as soon as possible as
to what steps are to be undertaken.
As I have said this payment is made under protest. I know the
City can use the money and I would prefer to pay a much larger sum
as a direct charitable donation to the City rather than be qiven
this unfair tax that was originally created for a special purpose
and where the special purpose expired approximately 25 years ago.
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Sincerely, . ?
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