Ordinance 39 of 2008

 

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SALT LAKE CITY ORDINANCE

No. 39 of 2008

(Increase to Business License Regulatory Fees and Disproportionate Costs)

 

      AN ORDINANCE AMENDING SECTION 5.04.070 OF THE SALT LAKE CITY CODE, RELATING TO BUSINESS LICENSE REGULATORY FEES AND DISPROPORTIONATE COSTS, REVISING SCHEDULE 1 OF TITLE 5 LISTING REGULATORY FEES, AND ADOPTING SCHEDULE 2 OF TITLE 5 LISTING FEES FOR DISPROPORTIONATE COSTS.

      WHEREAS, pursuant to Section 10-1-203(1), Utah Code Ann. (2007), municipalities are authorized to license businesses for the purpose of regulation and revenue;

      WHEREAS, pursuant to Section 10-1-203(5)(a)(i)(C), Utah Code Ann. (2007), a municipality may raise revenue by levying and collecting a license fee on businesses that cause disproportionate municipal services costs;

      WHEREAS, pursuant to Section 10-1-203(5)(c), Utah Code Ann. (2007), before the governing body of a municipality imposes a license fee or tax on a business that causes disproportionate municipal services costs, the governing body must adopt an ordinance defining for the purposes of the tax what constitutes disproportionate costs and  what amounts are reasonably related the costs of municipal services provided;

      WHEREAS, Section 5.04.070(D) identifies what constitutes disproportionate costs;

      WHEREAS, in 2006, the City’s finance office conducted a time study of police and fire department service calls made by different types of businesses to determine the basic level of services and disproportionate level of services provided;

      WHEREAS, based on the aforementioned time study, the finance office recommends certain increases in the City’s regulatory and disproportionate license fees to recover the costs of providing municipal services to city businesses. 

      Be it ordained by the City Council of Salt Lake City, Utah:

      SECTION 1.  That Section 5.04.070 of the Salt Lake City Code, relating to open space land, be, and the same hereby is, amended as follows:

5.04.070 License Fees Levied:

A.    Fees For Businesses Located In The City: There is levied upon the business of every person engaged in business in the city at a place of business within the city, an annual business license fee per place of business. The amount of the fee shall be the base license fee imposed under subsection B of this section, plus:

1. The regulatory fee imposed under subsection C of this section, if applicable; and

2. The disproportionate impact fee imposed under subsection D of this section, if applicable; and

3. The enhanced services fee imposed under subsection E of this section, if applicable.

B.    Base License Fee: The base license fee levied and imposed, covering licensing, inspection, and related administrative costs shall be as follows:

1. Home occupation businesses: Fifty dollars ($50.00).

2. Nonhome occupation businesses: Seventy five dollars ($75.00).

C.    Regulatory Fee: The regulatory fee levied and imposed, for direct cost associated with doing business within the city, covering licenses listed under schedule 1 of this title shall be as set forth thereunder.

D.    Disproportionate Costs:

1. It is determined by the city council that a disproportionate level of municipal services are provided to certain businesses within the city in comparison with that level of services provided to other businesses and to residences within the city, based on additional services provided to such businesses and on disproportionate use of police, fire, transportation, and street maintenance services and the additional costs associated with increased usage of public facilities by employees.

2. The fee determined to be related to the disproportionate costs of such municipal services is fifteen dollars ($15.00) per employee for each and every full time and part time employee exceeding one, engaged in the operation of said business, based upon the "number of employees" defined in section 5.02.005 of this title, or its successor section.

3.  Additional fees for disproportionate costs related to specific business are listed under schedule 2 of this title.

E.    Enhanced Services: It is determined by the city council that municipal services are provided to businesses within the central business district and the Sugar House business district, as defined in the zoning ordinance, at a level which exceeds other geographic areas of the city. No enhanced service fee shall be charged said businesses at the present time.

F.    Multiple Rental Dwellings: An owner of multiple rental dwellings within the city shall be required to obtain one base license and to pay one base license fee for the operation and maintenance of all such rental dwellings plus a regulatory fee as set forth in subsections B and C of this section.

G.    Fee For Businesses Located Outside The City: There is levied upon every person engaged in business in the city, not having a place of business in the city, and not exempt as provided by section 5.04.040 of this article, or its successor section, the same license fee as if such place of business was located within the corporate limits of Salt Lake City.

H.    Nonrefundable Application Fee: In the event any initial or renewal business license application is denied by the city or is withdrawn by the applicant, the city shall be entitled to retain the sum of thirty five dollars ($35.00) as a nonrefundable business license application fee from any license fees paid or payable to the city, unless another nonrefundable business license application fee is otherwise provided for under the ordinances of the city.

I.    Renewal Notices: Any notice or renewal reminder provided by the city in connection with this section may be sent by ordinary mail, addressed to the address of the business as shown on the records of the city's licensing office, or, if no such address is shown, to such address as the licensing office is able to ascertain by reasonable effort. Failure of a business to receive any such notice or reminder shall not release such business from any fee or any penalty, nor shall such failure operate to extend any time limit set by the provisions of this chapter.

SCHEDULE 1

The following classes of businesses, listed with their subclasses, shall be charged the following annual regulatory fees. The listed fee includes the charge for one background check where required. For each additional background check per business there shall be a fee of one hundred thirty three dollars ($133.00).

      Classes And Subclasses Of Businesses      Regulatory Fee

1.    Pawnshop and secondhand dealer

      PAWNBROKER

      Fee per business                    $1250.00

      SECONDHAND COMPACT DISK EXCHANGE DEALER

      Fee per business                    375.00     SECONDHAND COMPUTER EXCHANGE DEALER

      Fee per business                    166.00

2.    Transportation vehicles

      CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

      Fee per business (new application)        140.00

      Fee per business (renewal)                0.00

      HORSEDRAWN CARRIAGE

      Fee per business                    40.00

3.    Apartments

      APARTMENT UNITS

      Fee per rental unit                       15.00

4.    Class A beer

      Fee per license                           238.00

5.    Class B beer

      Fee per license                           188.00

6.    Class C beer

      Fee per license                           266.00

7.    Class D beer special event

      Fee per event                             188.00

8.    Class E beer

      Fee per license                            213.00

9.    Class F brewpub/microbrewery

      Fee per license                           188.00

10.   Seasonal beer

      Fee per license                           188.00

11.   Class A private club

      Fee per business                    334.00

12.   Class B private club

      Fee per business                    334.00

13.   Class C private club

      Fee per business                    334.00

14.   Class D private club                      334.00

15.   Class E private club                      70.00

16.   Liquor consumption

      Fee per license                           20.00

17.   Government owned alcohol related business

      Fee per business                    133.00

18.   Auctioneer

      Fee per auctioneer                        100.00

19.   Auction

      AUCTION HOUSE­TRANSIENT

      Fee per business, per day                 188.00

20.   Room rental (other than apartments)

      BOARDING AND ROOMING HOUSE

      Fee per rental unit                       4.00

      HOTEL

      Fee per rental unit                       4.00 MOTEL

      Fee per rental unit                        4.00

21.   Entertainment

      CONCERT

      Fee per exhibition room             70.00

      DANCE HALL

      Fee per room                              13.00

      LIVE ENTERTAINMENT

      Fee per exhibition room             0.00

      THEATER­LIVE

      Fee per exhibition room             100.00

      THEATER MOTION PICTURE

      Fee per screen                            0.00

22.   Dating/marriage

      Fee per business                    80.00

23.   Fireworks

      FIREWORKS­INSIDE

      FIREWORKS­OUTSIDE

      Fee per location                    61.00

24.   Gas/oil

      WHOLESALE GAS

      Fee (total per year)                      203.00

25.   Sexually oriented

      ADULT BUSINESS

      Fee per business                    288.00

      NUDE AGENCY

      Fee per business                    750.00

      NUDE ENTERTAINMENT BUSINESS

      Fee per business                    288.00

      SEMINUDE DANCE AGENCY

      Fee per business                    290.00

      SEMINUDE DANCING BAR

      Fee per business                    222.00

      SEXUALLY ORIENTED BUSINESS OUTCALL AGENCY

      Fee per agency                      1,000.00

26.   Sexually oriented

      ADULT EMPLOYEE (NONESCORT)

      Fee per employee                    175.00

      SEXUALLY ORIENTED BUSINESS OUTCALL

      NONPERFORMER (NONESCORT)

      Fee per employee                    175.00

27.   Sexually oriented

      The fee contained in this section shall be prorated as follows: If 180 days or fewer remain before the employer's license expires, the fee shall be 50 percent of the full fee. If 181 days or more remain before the employer's license expires, the full fee shall be charged.

      NUDE PERFORMER EMPLOYEE

      Fee per nude/seminude performer           200.00

      SEMINUDE DANCE PERFORMER

      Fee per nude/seminude performer           200.00

      SEMINUDE PERFORMER EMPLOYEE

      Same as Seminude Dance Performer

28.   Sexually oriented business

      The fee contained in this section shall be prorated as follows: If 180 days or fewer remain before the employer's license expires, the fee shall be 50 percent of the full fee. If 181 days or more remain before the employer's license expires, the full fee shall be charged.

      SEXUALLY ORIENTED BUSINESS OUTCALL

      PERFORMER (ESCORT)

      Fee per outcall performer                  750.00

29.   Sexually oriented

      SEXUALLY ORIENTED BUSINESS TRANSFER

      Fee per performer transfer                70.00

30.   Sexually oriented business

      PHOTOGRAPHY, ADULT

      Fee per photographer                      140.00

31.   Solicitor

      Fee per individual                        100.00

32.   Amusement devices/billiards

      AMUSEMENT DEVICES

      Fee per device                            2.50

      BILLIARDS

      Fee per device                            2.50 Miscellaneous

      ICE CREAM VENDORS

      Fee per business                    25.00

      LOCKSMITHS

      Fee per business                    0.00

      PEDICABS

      Fee per business                    0.00

      SIDEWALK VENDING/SNOW CART

      Fee per business                    0.00

SCHEDULE 2

The following classes of businesses, listed with their subclasses, shall be charged the following annual disproportionate fees.

1.    Amusement Devices/Billiards         $20.00/business

2.    AUTOMOBILES

      Automobile Dealers                        45.00

      Automobile Parts Sales              85.00

      Automobile Rental Agencies                20.00

      Automobile Repair                   45.00

      Automobile Towing/Wrecking          15.00

3.    Banks                               100.00

4.    Child Care Facilities                     100.00

5.    Clothing Sales                            75.00

6.    Construction Businesses             20.00

7.    Convalescent and Retirement Facilities    120.00

8.    Dance Halls                         15.00

9.    Dry Cleaning and Laundry                  100.00

10.   Electronic Goods Sales              120.00

11.   Engineering                         20.00

12.   Furniture Sales                     45.00

13.   Gasoline Stations                   120.00

14.   Grocery/Convenience Store (including gasoline)

                                          100.00

15.   Hardware Sales                      100.00

16.   Health Care Facilities; Hospitals         35.00

17.   Interior Design                     20.00

18.   Janitorial                          55.00

19.   Lawyers                             15.00

20.   Live Entertainment; Concerts              15.00

21.   Manufacturing                             35.00

22.   Miscellaneous Retail/Wholesale Sales      35.00

23.   Miscellaneous Services              20.00

24.   Motion Picture Theater              75.00

25.   Real Estate Agency                        15.00

26.   Restaurants; Cafeterias             75.00

27.   RV Parks and Campgrounds                  20.00/space

28.   Shipping Companies                        35.00

29.   Sporting Goods Sales                      35.00

30.   Storage Services                    45.00

31.   Wholesale Gas and Oil Businesses          20.00

 

      SECTION 2.  That this ordinance shall take effect July 1, 2008.

            Passed by the City Council of Salt Lake City, Utah this 17th day of June, 2008.

Bill No. 39 of 2008.

Published: July 1, 2008.