Chapter 5.17
BUSINESS LICENSE TAX ON EXTRACTION AND/OR PROCESSING OF ROCK, SAND AND GRAVEL (AGGREGATE)
Sections:
5.17.020 Payment of business license tax and business license required.
5.17.030 Verification of annual production.
5.17.040 Rock, sand and gravel (aggregate) extraction and processing tax.
5.17.050 Recordkeeping – Retention of records and right of inspection.
5.17.060 Failure to remit tax when due – Penalty.
5.17.070 Payment of other fees or taxes not excused.
5.17.090 Taxes a debt to city – Actions for collection of taxes.
5.17.130 Repealed.
5.17.140 Effect on past actions and obligations.
5.17.010 Purpose.
The purpose of this chapter is to establish a tax on the commercial business of extraction and/or processing of rock, sand and gravel (aggregate) within the city as a means of generating revenue for the city for municipal purposes and not as a regulatory measure. This business license tax is imposed in the interests of the health, safety, convenience and welfare of the residents of the city. (Ord. 237 § 1, 1998)
5.17.020 Payment of business license tax and business license required.
A. In addition to the requirements of Chapter 5.04 HMC, there is imposed upon any business engaged in the principal business of extracting and/or processing rock, sand or gravel (aggregate) from or on any real property located within the city, for the purpose of commercial use or sale, a general business license tax in the amount set forth in HMC 5.17.040.
B. Each business which is subject to this chapter shall, within 45 days of the effective date of the ordinance codified in this chapter, apply for and obtain a business license tax certificate, as part of the business license application, from the collector. The business license tax certificate application shall include a current topographic map of all permitted extraction sites within the city, at a scale of one inch equals 200 feet and shall include the locations of the city limits and permit limits.
C. It is unlawful for any person, whether as principal or agent, or employee, either for himself or for any other person, to transact and carry on any business within the city which is subject to the business license tax established in this chapter without first having applied for and procured a business license tax certificate from the city to do so, and without having paid the business license tax therefor. Exemptions to this requirement are set forth in HMC 5.17.080.
D. As used in this chapter, “processed” or “processing” shall include, but not be limited to, the utilization of rock, sand or gravel (aggregate) from any source or location, as a primary ingredient as part of a manufacturing or batching process (such as asphalt or concrete batching) within the city.
E. As used in this chapter, to be “engaged in business” shall include the acts of extracting rock, sand or gravel (aggregate) from or on any real property located within the city, processing rock, sand or gravel (aggregate), and/or the utilization of rock, sand or gravel (aggregate), from any source or location, as a primary ingredient as part of a manufacturing or batching process within the city. As used in this chapter, “engaged in business” shall also include the business of extraction and processing of rock, sand or gravel (aggregate) which is sold to a public agency pursuant to bid.
F. Whenever any person is carrying on two or more related activities at the same location and under the same ownership and management, such as extraction and processing of rock, sand or gravel (aggregate), then in that event the business license tax shall be applied once only to each ton of material extracted or processed, whichever is greater, and a single business license shall be issued; provided, however, that nothing contained in this section shall be construed to relieve the payment of two or more business license taxes when required, where two or more separate businesses are conducted in the same location by the same owner and/or management and such businesses are not construed by the collector to be correlated or allied with each other. An appropriate business license tax as set forth in this chapter shall be paid for each business.
G. Nothing contained in this chapter shall be construed to relieve the obligation to obtain a separate business license and to pay the appropriate business license tax required for each business owned or conducted by a separate owner whether or not under the same management. (Ord. 237 § 1, 1998)
5.17.030 Verification of annual production.
A. In order for the city to verify annual production reporting, each business which is subject to this chapter shall submit the following information to the collector:
1. Each year on or before June 30th, production quantities shall be submitted, reported in tons by quarter and cumulatively for the reporting year.
2. Each year, on or before July 15th, a current aerial photograph shall be submitted of the mining area with city limits and mine permit area clearly identified.
3. Every five years, on or before July 15th, a current topographic map of the business’s permitted extractive sites within the city shall be submitted. The topographic map shall be based on aerial photographs taken within 45 days of submittal. The purpose of the topographic maps is to verify reported production quantities.
4. Weight slips for aggregate materials shall be made available to the city annually, upon request.
B. If the information submitted pursuant to this section does not adequately quantify annual production, additional information and/or documentation, identified by the city, may be required and shall be provided at the expense of the business.
C. In addition to the measures set forth in this section, the city may conduct an audit to ensure compliance with this chapter. The expenses incurred in the completion of the audit shall be paid by the city, unless inaccuracies in reporting are identified. Should inaccuracies be identified, the penalties set forth in HMC 5.17.060 shall be assessed, including the cost of the audit. (Ord. 265 § 2G, 2000; Ord. 237 § 1, 1998)
5.17.040 Rock, sand and gravel (aggregate) extraction and processing tax.
A. Every person who engages in the principal business of extracting and/or processing rock, sand or gravel (aggregate), from or on any real property located within the city, for the purpose of commercial use or sale, shall pay a general business license tax on each ton of material excavated from and/or processed in the city according to the following schedule:
|
January 1, 1999, to June 30, 1999 |
$0.06 per ton |
|
July 1, 1999, to June 30, 2000 |
$0.09 per ton |
|
July 1, 2000, to June 30, 2001 |
$0.12 per ton |
The rate of tax commencing July 1, 2001, shall be $0.14 per ton, adjusted annually in July in accordance with the Consumer Price Index, for all urban consumers for L.A./Anaheim/Riverside (or substantially equivalent index), with the exact rate to be fixed from time to time by resolution of the city council, not to exceed $0.35 per ton.
B. The tax on the processing and/or extraction of rock, sand and gravel (aggregate), and businesses as set forth herein, shall begin on January 1, 1999, and shall be paid and collected by the city quarterly, beginning April 1, 1999. The returns for the tax shall be submitted by the persons engaged in said principal business within 15 days following the end of each quarter for which the tax is due, on July 1st, October 1st, January 1st and April 1st of each calendar year, subject to the penalties for failure to pay the said tax as set forth in HMC 5.17.050.
C. The collector shall provide each person in said principal business with a form for reporting the quarterly return. Said returns shall indicate:
1. The tonnage of rock, sand and gravel (aggregate) extracted and/or processed during the prior calendar quarter from property located within the city of Highland.
2. The tonnage of rock, sand and gravel (aggregate) extracted during the prior calendar quarter from property located outside the city, and processed within the city, which is taxed by another city or county, and the rate of tax which has been collected by the other city or county for the same material.
3. The tonnage of rock, sand and gravel (aggregate) shipped from extraction or processing facilities located within the city to concrete batch plants, asphalt batch plants, and other processing or manufacturing facilities that utilize aggregate materials.
4. The tonnage of concrete and/or asphalt or other processed materials shipped from processing facilities located within the city. Concrete and asphalt materials shall be taxed at a rate to be determined by the city based on approximate aggregate content, per cubic yard of concrete, asphalt or other processed material shipped. Other products processed on the site where aggregate is used as a constituent in an end product will be taxed based on the approximate aggregate content.
5. The current tax rate imposed by the city.
D. Information provided on the quarterly return shall not be considered conclusive as to the information it contains, will not prevent the city from collecting the appropriate amount which is actually due and payable, and shall be subject to review, audit and verification.
E. Determination of Tax or License Classification – Right to Hearing.
1. The collector shall determine the amount of business license tax due or the proper classification for a business by means of such information as he may be able to obtain if:
a. Any person fails to file any required statement within the time prescribed; or
b. If, after demand therefor has been made by the collector, he fails to file a corrected statement within 15 days after notification to do so; or
c. It appears to the satisfaction of the collector that a statement filed does not set forth the facts of the business for which a license is required; or
d. If a licensee or an applicant for a license believes that his individual business is not assigned to the property classification because of circumstances peculiar to it.
2. Notice of Determination. If such determination is made, the collector shall give notice of the amount so assessed or classification found to be appropriate in the following manner:
a. By serving it personally; or
b. By depositing it in the United States mail, postage prepaid, addressed to the person so assessed at the address appearing on his last business license or application therefor.
3. Right to Hearing. Such person may, within 10 days after the serving or mailing of such notice, apply in writing to the collector for a hearing on the amount of the business license tax or classification determination.
If such application is made, the collector shall give not less than five days’ written notice, in the manner prescribed herein, to the licensee to show cause, at a time and place fixed in the notice, why the amount specified therein should not be fixed or classification determined for such license.
At such hearing, the licensee may appear and offer evidence why such specified tax should not be fixed as the business license tax or such classification prescribed.
After such hearing the collector shall determine the proper tax to be charged or classification prescribed. He shall forthwith give written notice to the licensee in the manner prescribed herein of such determination and the amount of the tax. (Ord. 265 § 2A, 2000; Ord. 237 § 1, 1998)
5.17.050 Recordkeeping – Retention of records and right of inspection.
It shall be the duty of every person liable for the reporting and payment to the city of any business license tax imposed by this chapter to keep and preserve, for a period of not less than three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the reporting of and payment to the city. The collector shall have the right and authority to examine or cause to examine, audit, and inspect such books and records as may be necessary to determine the amount of tax due and payable, and shall have the authority to enforce all provisions of this chapter. (Ord. 237 § 1, 1998)
5.17.060 Failure to remit tax when due – Penalty.
A. Any person who engages in a business which is subject to this chapter, who fails to remit any tax imposed hereby within the time required, shall pay a penalty of 10 percent per annum, compounded, of the amount of tax in addition to the amount owed. Such penalty shall be added by the collector on the first day of each month after the due date thereof. In addition to the penalty set forth above, the city shall also collect all of its administrative costs, attorneys’ fees and other costs incurred by in enforcing this chapter.
B. If the collector determines that the nonpayment and/or underpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated hereinabove.
C. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid by this chapter.
D. The penalty set forth herein shall be in addition to any other applicable penalty for a violation of this chapter, or any other recourse or remedy available to the city by law. (Ord. 237 § 1, 1998)
5.17.070 Payment of other fees or taxes not excused.
Any person required to pay a business license tax for conducting a business under this chapter shall not be relieved from the payment of any other permit charge, fee or tax for the privilege of conducting such business required under any other provision of this code or any other ordinance or regulation of the city or other agency, and such person shall remain subject to all applicable regulatory provisions. (Ord. 237 § 1, 1998)
5.17.080 Exemption from tax.
A. In the event that the extraction of any of the rock, sand and gravel (aggregate) processed by the person responsible for paying the tax is in fact taxed by any other city or county, and the other city or county also allows a reduction in tax under the same circumstances, then the tax so paid on the materials so processed may be reduced by as much as the amount paid to the other city or county, but in no event shall the reduction be more than one-half of the rate charged by the city.
B. No business license tax shall be required under this chapter of or from any person exempt from the business license tax by virtue of the constitution or any applicable statutes of the United States or the state of California.
C. No business license tax shall be required under this chapter of or from any governmental agency or subdivision and the employees thereof, but only to the extent they are engaged in the business of such governmental agencies or subdivisions.
D. Any person claiming a business license tax exemption under this chapter has the burden of furnishing to the collector such information as the collector may require to support the claim or eligibility for exemption.
E. The collector may require the filing of a verified statement from any person claiming to be excluded or exempt by the provisions of this chapter. Such statement shall set forth all facts upon which the exclusion or exemption is claimed.
F. Interstate Commerce – Relief from Undue Burdens.
1. No business license tax authorized by this chapter shall be so applied as to occasion an undue burden upon interstate commerce.
2. If a licensee or applicant for a license believes that the business license tax places an undue burden on such commerce, he may apply to the collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed business license tax.
3. The applicant shall, by affidavit, supporting testimony and documentary evidence, show his method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce.
4. The collector shall conduct an investigation. After obtaining the written approval of the city attorney, the collector shall, within 15 days after the applicant has submitted the necessary information, fix the business license tax for the applicant in an amount that is reasonable and nondiscriminatory. If the business license tax has already been paid, the collector shall order a refund of the amount over and above the business license tax so fixed. In fixing the business license tax to be charged, the collector shall be authorized to base the tax upon a percentage of gross receipts or any other measure which will assure that the business license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the business license tax as prescribed by this chapter.
5. Should the collector determine the gross receipts measure of business license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of the applicant’s business in the city or at the end of each three months, a sworn statement of the gross receipts and pay the amount of business license tax therefor; provided, that no additional business license tax during any one calendar quarter shall be required after the licensee shall have paid an amount equal to the annual business license tax as prescribed in this chapter. (Ord. 265 § 2B, 2000; Ord. 237 § 1, 1998)
5.17.090 Taxes a debt to city – Actions for collection of taxes.
The amount of any business license tax, penalty or interest, or any combination thereof, imposed by the provisions of this chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent business tax, penalties, interest, charges and administrative costs incurred in connection therewith, including attorneys’ fees. (Ord. 237 § 1, 1998)
5.17.100 Misrepresentation.
No person shall knowingly or intentionally misrepresent any material fact in applying for or paying for the business license tax certificate. (Ord. 237 § 1, 1998)
5.17.110 Appeals.
A. Who May Appeal. Any person aggrieved by the application of this chapter, or by any decision of the collector regarding the issuance or refusal to issue a license, the appropriate license classification of the business, or the amount of a business license tax, may appeal to the city council by filing a notice of appeal with the city clerk within 60 days after the due date for payment of the tax, or within 15 days of any decision of the collector. The notice of appeal shall be accompanied by an appeal fee in an amount established by resolution of the city council and shall state the grounds for the appeal. The initiation of an appeal shall not relieve the appellant of the obligation to pay the tax.
B. Public Hearing. The city clerk shall set a time and place for a public hearing of such appeal before the city council and shall give the appellant not less than 10 days’ written notice thereof in the following manner:
1. By serving it personally, or
2. By depositing it in the United States mail, postage prepaid, addressed to such person at the address appearing on his last business license or application.
At the public hearing the city council shall consider the evidence presented by the appellant, the collector, and other interested parties prior to making a decision. The hearing may be continued from time to time.
C. Findings of the City Council. The findings of the city council shall be final and conclusive. They shall be served upon the appellant in the manner prescribed in subsection B of this section by the city clerk. Review of any final decision by the city council shall be requested pursuant to Code of Civil Procedure Section 1094.5.
D. Due Date of Tax. The amount of any business license tax finally determined as provided in this section shall be due and payable as of the date the original business license tax was due and payable, together with any penalties that may be due thereon; provided, however, that if the amount of such business license tax is fixed in accordance with the original statement of the appellant, no penalty shall attach by reason of any delinquency. (Ord. 265 § 2C, 2000)
5.17.120 Amendments.
The procedural provisions of this chapter may be amended by ordinance duly enacted by the city council. (Ord. 237 § 1, 1998)
5.17.130 General penalty for violations.
Repealed by Ord. 370. (Ord. 265 § 2D, 2000; Ord. 237 § 1, 1998)
5.17.140 Effect on past actions and obligations.
Neither the adoption of the ordinance codified in this chapter nor its superseding of any portion of any other ordinance of the city shall in any manner be construed:
A. To affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this chapter; or
B. As a waiver of any license or other penal provisions applicable to such violation; or
C. To affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited.
All rights and obligations pertaining to the foregoing shall continue in full force and effect. (Ord. 265 § 2E, 2000)
5.17.150 Severability.
If any section, subsection, sentence, clause or phrase of this chapter or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, the validity of the remaining portions of this chapter, the application thereof, and the tax imposed shall not be affected thereby but shall remain in full force and effect, it being the intention of the city council and the voters to adopt each and every section, subsection, part, clause, sentence and phrase regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or unconstitutional. (Ord. 237 § 1, 1998)