AGENDA TITLE:
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Conduct a Public Hearing to Consider Waiving of the First Reading and Introducing An Ordinance Repealing Lodi Municipal Code Title 3 (Revenue and Finance), Chapter 3.01 (Business Tax Certification) and Replacing it with Chapter 3.01 (Business License Registration) (FIN)
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MEETING DATE:
February 21, 2024
PREPARED BY:
Melissa Munoz, Accounting Manager
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RECOMMENDED ACTION:
Conduct a Public Hearing to consider waiving of the first reading and introducing an ordinance repealing Lodi Municipal Code Title 3 (Revenue and Finance), Chapter 3.01 (Business Tax Certification) and replacing it with the proposed Chapter 3.01 (Business License Registration).
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BACKGROUND INFORMATION:
In September 2023, the City announced the suspension of the Business License Tax in Lodi Municipal Code Chapter 3.01("Business License Tax"). The Business License Tax was adopted in March 1995, to monitor business operations in the City and raise revenue for the general fund.
Due to the date the Business License Tax ordinance was adopted, it was subject to the retroactivity clause of Proposition 218 as adopted in 1996 ("Prop 218"). Therefore, the Business License Tax should have gone back for voter approval to continue collecting the tax provisions. Since the Business License Tax was not taken back to the voters by 1998, under the terms of Prop 218, it was immediately invalidated. Upon discovery of Prop 218's retroactive application and the invalidation, the City suspended all collection of the Business License Tax, issued refunds to those businesses that paid the tax within the preceding 12 months, and stopped issuing all business licenses.
However, it is critical for the City to have information on businesses and business types for monitoring safe operations, economic development strategic planning, data collection to be able to provide resources to specific business interests and groups in the region, as well as to provide local lic...
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