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HomeMy WebLinkAbout05/18/1993, C-4 - LATE FEE ON DELINQUENT ACCOUNTS �;IIIII�� city of San .aI S OBI SPO MEETING DA 11 ONZa COUNCIL AGENDA REPORT NUMBE1e � FROM: William C. Statler, Director of Finance Prepared by: Linda Asprion, Revenue Manager ' SUBJECT: LATE FEE ON DELINQUENT ACCOUNTS CAO RECOMMENDATION Give final passage to Ordinance 1234 (1993 Series) amending sections 3.01.505 and 3.04.080 of the Municipal Code to establish penalties for delinquent payment of business and transient occupancy taxes. DISCUSSION On May 4, 1993, Council held a public hearing to introduce an ordinance amending the Municipal Code to provide for setting penalties on delinquent business and transient occupancy taxes by Resolution and to adopt a Resolution implementing a monthly late fee in the amount of$10 or 1.5%, whichever is greater, on all accounts that have not been paid within 30 days of the due date. Public comment was heard and Council adopted the Resolution and introduced Ordinance 1234. FISCAL IMPACT It is not anticipated that the amount of late fees collected will be significantly more than is currently collected. i i � AA- ORDINANCE 1234 (1993 SERIE.,_'� AN ORDINANCE OF THE CTTY OF SAN LUIS OBISPO O AMENDING SECTIONS 3.01.505, AND 3.04.080 OF THE SAN LUIS OBISPO MUNICIPAL CODE RELATING TO PENALTIES ON DELINQUENT PAYMENTS WHEREAS, the City of San Luis Obispo is implementing a standard late fee on all delinquent accounts; and WHEREAS, amending sections 3.01.505 and 3.04.080 of the municipal code is necessary to establish penalties for delinquent payment of business and transient occupancy taxes by resolution; and WHEREAS, the City Council has held a hearing to consider the proposed changes; NOW THEREFORE BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 3.01, Section 3.01.505, Delinquencies and Penalties, is hereby amended to read as follows: 3.01.505 Delinquencies and Penalties For failure to pay the business tax required by the provisions of this chapter prior to the delinquency date, the Director of Finance shall add a penalty. The amount of this penalty shall be set by resolution of the City Council. SECTION 2. Chapter 3.04, Section 3.04.080, Penalties and interest, is hereby amended to read as follows: 3.04.080 Delinquencies and Penalties A. Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty, the amount of which will be set by resolution of the City Council. B. Fraud. If the tax administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsection A of this section. C. Penalties Merged with Tax. Every penalty imposed under the provisions of this section shall become a part of the tax herein required to be paid. SECTION 3. A summary of this ordinance, approved by the City Attorney, together C with the ayes and noes, shall be published once in full, at least five (5) days prior to'the final passage in the Telegram-Tribune, a newspaper published and circulated in said City, and the same shall go into effect July 1, 1993. INTRODUCED AND PASSED TO PRINT by the Council of the City of San.Luis Obispo at its meeting held on the 4th day of May , 1993, on motion of Council Member Rauva , seconded by Council Member Romero and on the following roll call.vote: AYES: Council Members Rappa, Romero, Roalman, and Mayor Pinard NOES: Council Member Settle ABSENT: None /s/ Mayor Peg Pinard Mayor Peg Pinard ATTEST: /s/ Diane R. Gladwell City Clerk Diane Gladwell APPROVED: Cw&X� ' At rn L'•�-