Report to Mayor and City Council
Tuesday, September 19, 2017
Discussion
SUBJECT:
Title
MEASURE C OVERSIGHT COMMITTEE (CITY COUNCIL)
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I. SUMMARY
On November 7th, Carson voters will consider Measure C, a Business License Tax on the refineries and industries that blend, mix, refine or store petroleum products. The City Council will consider the formation of an Oversight Committee, should Measure C be approved.
II. RECOMMENDATION
Recommendation
The City Council should provide direction to staff on the formation of the Oversight Committee, membership and other issues. Staff will then return with an ordinance adding the Oversight Committee into the Carson Municipal Code.
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III. ALTERNATIVES
1. TAKE no action.
2. ADVISE staff on alternatives to the Oversight Committee.
3. TAKE such other action as the City Council deems appropriate
IV. BACKGROUND
The City Council adopted at its August 7, 2017 special meeting the necessary resolutions to place a ballot measure for voters on November 7, 2017 to consider a business license tax on gross receipts on businesses that blend, mix or refine petroleum or petroleum products or store petroleum products. The City Council officially endorsed the tax measure on September 5, 2017 by adopting a resolution of support. he Los Angeles County Clerk has assigned Measure C to the proposed tax measure.
This tax would be calculated based upon the gross receipts of all oil-related industries within the City and would be a general tax. A tax on gross receipts is a common way in which business license taxes are measured (note that the City currently imposes a business license tax based upon the number of employees).
This type of tax is generally lawful and administrable and is generally legally simple to draft.
The tax is estimated to raise approximately $24 million annually to aid in the City's General Fund budget for all services. Examples of expenditures include:
* Maintain and improve 911...
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