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 Vernon
 Code of Ordinances
 THE CODE
 Chapter 5. BUSINESS LICENSE TAXES AND OTHER CITY TAXES.
 Article III. Special Taxes.

  § 5.40. Setting license tax rates by resolution; annual adjustment of tax rates; penalties.  

Latest version.
  • (a) Pursuant to section 2(b) of Article XIIIC of the California Constitution, the tax rates established by this article are maximum rates, and the city council may impose taxes at any rate or amount that is equal to or less than the maximum rates or amounts authorized by this article.
    (b) The maximum rates established by this article shall be revised annually each June based upon changes in the Consumer Price Index for All Urban Consumers (CPI-U), All Items Index, Los Angeles- Anaheim-Riverside Area (1982-84=100) (hereinafter "CPI") published by the United States Department of Labor, Bureau of Labor Statistics. In the event said CPI for the twelve-month period ending March 31 of each year (the "adjustment date") is higher than said CPI for the twelve-month period ending March 31, 1997, the maximum tax rates set forth in this article shall be increased by multiplying said tax rate by a fraction, the numerator of which is the CPI on the adjustment date and the denominator of which is the CPI for the twelve-month period ending March 31, 1997. The resulting adjusted tax rates shall then be the maximum tax rates for the tax year commencing the next January 1st. There shall be no reduction in rates by operation of this provision. If, in the future, said CPI shall be changed so that the base year differs from that used as of the effective date of this article, it shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. The city clerk shall submit a written report to the city council setting forth the adjustments to the maximum tax rates required by this section, which the city council shall approve by resolution.
    (c) Periodically, the city clerk shall submit to the city council a recommendation for revising the tax rates imposed on businesses subject to this article, provided, that the recommended license tax rates shall not exceed the maximum tax rates authorized by this chapter. A complete license tax and fee schedule shall be adopted by resolution of the city council. Should the council, for any reason, fail to adopt such a resolution, the maximum tax rates as determined by this section shall be deemed to be the schedule of taxes to be levied pursuant to this chapter.
    (d) The penalties provided for in section 5.11 of this Code shall apply to the tax imposed by this article.
    (Ord. No. 1057, § 2, Exh. A.)