Fiscal Year 2013-2015 Special Budget Meeting

ATTACHMENT E Oakland Municipal Code Sections f o r Transient Occupancy Tax and Business License Tax Exemptions Transient Occupancy Tax Relevant Municipal Code Sections 4.24.040 Exemptions. No lax shall be imposed upon: A. Any transient as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax herein provided; or B. Any officer or employee of a foreign or domestic government,or domestic corporation who is exempt by reason of express provision of federal law or international treaty, provided billing is made directly to and payment is received from the governmental agency qualifying for this exemption. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by Tax Administrator. C. Whenever an operator charges a transient rent, and such charges prove to be uncollectible, those amounts are not subject to the tax. However, if these amounts are subsequently collected, the amount of tax shall be included in the amount paid to the city when filing the next return.' Business License Tax Relevant Municipal Code Sections 5.04.620 Small business exemption. A. Notwithstanding any other provisions of this chapter, "small business enterprises" as hereinafter defined, shall be exempt from payment of business tax; provided, however, that small business enterprises shall pay the registration fee pursuant to Section 5.04.100 and shall submit an annual statement pursuant to Section 5.04.090 B. The term "small business enterprise" shall mean and include any person (other than persons subject to taxation pursuant to Section 5.04.420 and 5.04.430 of this code): 1. Whose tax basis under this chapter is set as gross receipts; 2. Whose annual gross receipts do not exceed two thousand five hundred dollars ($2,500.00); and 3. Any person claiming exemption from the requirement of paying the business license tax under this section shall be required to obtain a business license and timely file for exemption and subsequent renewals before the delinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent, shall render the small business exemption inapplicable and shall subject the person to the tax that would otherwise be payable as well as to any interest and penalties applicable thereto. Persons claiming exemption shall be required to pay the business licenses application fee and all other applicable city fees, and to obtain all permits required for the operation of the business. 4. Any person claiming exemption under this section shall submit documentation evidencing the total taxable and nontaxable gross receipts of the applicant in support of the initial exemption registration and the annual exemption renewal. Such documentation shall comply with the requirements established by the Finance Director to ensure accuracy and validity of the city's determination on the exemption claim. 5. Beginning with the 2010 tax year, the maximum annual gross receipts threshold for the small business exemption shall be adjusted to refiect the rate of inflation every three years to the level equal to the cumulative change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI) or other method of measuring the rate of inflation which the City Administrator determines is reliable and generally accepted, over the three preceding fiscal years, and rounding the exemption amount to the nearest one hundred dollars ($100.00). 5.04.630 Exemption for nonproflt corporation, association, etc.—Exemption for owners of low income housing tax-credit financed affordable housing developments.