Title
An Ordinance Of The City Of Hollywood, Florida, Amending Chapter 110 The Code Of Ordinances Entitled “Local Business Tax Receipts, Generally”; Amending Subsections Under General Provisions; Amending Subsections Under Business Classification And Local Business Tax Rate Schedule And Amending Subsections Under Administration And Enforcement.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the attached Ordinance.
Explanation:
Chapter 110 of the City Code establishes the City’s framework for assessing and administering Local Business Taxes. Staff conducted a comprehensive review of the chapter and identified several provisions requiring clarification or modernization. The proposed resolution revises fees, refunds, transfer procedures, and clarifies requirements for multi-service businesses and exemptions. These changes help staff apply the Code more uniformly and reduce ambiguity for applicants.
The ordinance revises the City’s refund and proration provisions to reflect the long-established principle that the Local Business Tax is a routine cost of doing business. Under the updated language, the criteria for issuing refunds have been reduced so that refunds are granted only in limited circumstances, while the proration of tax has been revised to be calculated based on the number of months remaining in the fiscal year at the time of application. This change reinforces the expectation that businesses are responsible for the tax once they apply for or receive a Local Business Tax Receipt, and it ensures consistent treatment across all business categories. By narrowing refund eligibility and the change in the proration of tax, the ordinance strengthens administrative efficiency and aligns the City’s practices with the understanding that the tax supports the regulatory and administrative functions necessary for businesses to operate within the City.
A major clarification concerns ownership changes. While transfers of a Local Business Tax Receipt are still permitted in cases of bona fide sales, the ordinance now makes clear that any change in ownership-whether by sale, inheritance, merger, or other transfer-requires the successor owner to apply for a new Local Business Tax Receipt.
The current fee structure is a uniform increase of five percent (5%) applied across all service categories. This increase is provided for municipalities in Florida Statutes, Section 205.0535(4). By applying this increase uniformly, we maintain a consistent and equitable pricing model that stabilizes our revenue streams against inflationary pressures.
Finally, the ordinance clarifies how businesses offering multiple services or holding multiple state or county licenses are treated. A business is taxed based on its principal activity, but each distinct licensable activity requires its own Local Business Tax Receipt.
Fiscal Impact:
The proposed amendments to Chapter 110 are expected to have a positive long-term impact on City revenues and administrative efficiency. By implementing a uniform fee increase, the City ensures that Local Business Tax receipts keep pace with inflationary operating costs, thereby stabilizing revenue streams.
Recommended for inclusion on the agenda by:
Pamela Harrell, Assistant Director, Financial Services / City Treasurer
Stephanie Tinsley, Director, Financial Services
Adam Reichbach, Deputy City Manager