MEETING DATE:
January 28, 2025
SUBJECT:
Title
ORDINANCE NO. 2025-1557 - AMENDING TITLE 3 (REVENUE AND TAXATION), CHAPTER 3.08 OF THE SAN MARCOS MUNICIPAL CODE REGARDING BUSINESS LICENSES
Body
Recommendation
Recommendation
INTRODUCE first reading of ordinance amending Title 3 (Revenue and Taxation), Chapter 3.08 of the San Marcos Municipal Code regarding Business Licenses.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Good Governance.
Relevant Department Goal
Not Applicable
Executive Summary
Chapter 3.08 of the City's Municipal Code governs the issuance of Business Licenses and the collection of corresponding taxes. That Chapter addresses the issuance of business licenses, and the information required to obtain one but does not currently include provisions regarding the recovery of costs related to regulatory business license processing. As a result, City staff is recommending that Chapter 3.08 be amended to include Business License Administrative Fees.
Discussion
The San Marcos Municipal Code ("SMMC") currently assesses an occupational license tax, also known as a business license tax, for the purposes of raising general revenues from persons doing business within the City. [SMMC sections 3.08.020, and 3.08.040.] A "Business" shall mean and include professions, trades, occupations and all and every kind of calling, whether or not carried on for profit. [SMMC section 3.08.010.] A business license is obtained by submitting a complete application for the license and payment of the license tax. [SMMC section 3.08.040.]
The license tax cannot be increased without a vote of the City's residents; however, the establishment or increase of regulatory fees to recover the costs of review of and inspections related to new business license applications for compliance with applicable laws does not require a vote of the City's residents. Therefore, business license administrative fees will be implemented to recover the c...
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