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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.