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WHAT IS A BUSINESS TAX?
The Business Tax is a revenue generating measure and is imposed for
the privilege of doing business in the City of Carson.
Although the Business Tax Certificate is generally referred as a
“Business License”, the term is a misnomer because it implies
competence in a given field with testing for qualifications. The
City of Carson does not regulate the competence or integrity of the
business.
The Business Tax benefits both the community and the business sector
by generating revenue to support City Services.
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WHO IS REQUIRED TO PAY THE
TAX?
Section 6310 of the Carson Municipal Code (CMC) requires everyone
who conducts or purports to conduct, either directly or indirectly,
any business, profession, trade or occupation, whether or not said
person has a fixed place of business within the City, to pay a
Business Tax.
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HOW MAY APPLICATION FOR A BUSINESS TAX CERTIFICATE BE MADE?
You may download the appropriate forms from this site or request
them by phone, e-mail or by appearing in person at the Revenue
Division public counter in City Hall.
1.
NEW BUSINESSES – All business taxes are payable in advance
and must be paid PRIOR to the commencement of any business
activity.
2.
ESTABLISHED BUSINESSES – Once a business is on record, all
renewal information will be mailed automatically prior to the next
tax period. It is, however, the responsibility of the owner to
maintain a current certificate regardless of whether or not a
renewal notice is sent.
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HOW IS THE AMOUNT OF
TAX DETERMINED?
Retail, wholesale, manufacturing, warehousing, profession and
semi-professional type operations pay a tax based on the number of
employees. Most businesses will fall into this category.
Some businesses, because of their peculiar method of operation, pay
a flat rate tax.
In 1996, Carson voters passed and approved Measure K which allowed
the City of Carson to adjust its schedule of business taxes annually
based on the Consumer Price Index (CPI). The tax rate, therefore,
varies from year to year. To obtain the tax rate for a particular
operation, please contact the Revenue Division staff.
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WHAT
IS INVOLVED IN THE ISSUANCE OF A TAX CERTIFICATE?
For those businesses with a physical location in the City, Section
6320 CMC requires that inspections be made prior to the issuance of
a certificate to ensure compliance with the mandates of the Carson
Municipal Code.
The departments involved in the approval process are the Planning &
Environmental Services of the Development Services Group, the Los
Angeles County Fire Department and the Los Angeles County Health
Department. Approval from the Sheriff’s Department is also required
for businesses that muse secure a regulatory permit.
An initial application fee in the amount of $100.00 is required at
the time of application to offset the cost of these inspections.
The annual renewal processing fee is $15.00.
Your business may be subject to regulations of the State of
California. Please consult with the appropriate State Departments
for further regulations pertaining to your business activity. A
list of government agencies is also available on this site.
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MAY A BUSINESS TAX CERTIFICATE BE TRANSFERRED TO A NEW LOCATION?
Yes, subject to the approval of all inspecting agencies. A $40.00
transfer fee is also required.
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MAY A BUSINESS TAX CERTIFICATE OR PERMIT BE TRANSFERRED FROM ONE
OWNER TO ANOTHER?
When the structure of a business entity is substantially changed,
such as through acquisition by another entity, the new entity is
required to obtain a new business tax certificate. However, in the
case of adding or dropping a partner, no new certificate is
required.
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IS A SEPARATE BUSINESS TAX CERTIFICATE REQUIRED FOR MORE THAN ONE
TYPE OF BUSINESS AT THE SAME LOCATION?
YES. A separate business tax certificate may be required for
different business activities performed at the same location. The
full fee is required for business for which the highest tax is
imposed and the second business activity will be taxed at a rate of
one-half (1/2) of the required fee. The half-fee, however, will not
apply to incidental operations such as juke boxes, vending machines
or amusement machines on the premises.
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DOES ONE CERTIFICATE COVER DIFFERENT BRANCH LOCATIONS OR MULTIPLE
LOCATIONS?
NO. Section 6324 CMC requires that a separate business tax
certificate must be obtained for each business location within the
City of Carson.
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MAY
A BUSINESS BE OPERATED FROM HOME?
YES. Some occupations are permitted, provided that:
1.
The home occupation is secondary and incidental to the
principal use of the property (residential).
2.
The home occupation is conducted solely by the inhabitants of
the property and no more than one type of business activity is
conducted from the premises.
Due to strict zoning regulations pertaining to business activities
conducted from the home, one must contact Planning and Environmental
Services before commencing with any activity.
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WHAT IS A BUSINESS PERMIT?
A
Business Permit is a regulatory measure and is required for those
business operations that may impact the public peace, safety or
welfare of the city and its inhabitants. For those businesses, a
Business Permit is required in addition to the Business Tax
Certificate.
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WHAT STEPS ARE INVOLVED IN THE GRANTING OF A BUSINESS PERMIT?
The Los Angeles County Sheriff’s Department reviews and investigates
all permit applications.
The permit will not be granted if these types of conditions exist:
1.
The business operation will create and/or maintain a public
nuisance.
2.
The business operation would be detrimental to the public
interest or endanger the public health, safety, welfare or morals.
3.
The applicant is of bad moral character and it would not
serve the public interest if the permit was granted.
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WHAT IS AN ALARM PERMIT?
An Alarm Permit is a regulatory measure imposed on any person or
business that maintains an alarm system which is used for the
detection of unauthorized entry into a building, structure or
facility.
Effective December 2, 1993, a $35.00 permit fee is required of all
businesses and residents who maintain a burglar alarm system.
Effective September 1, 2004, a $20 annual renewal fee is also
required.
In addition, in order to minimize the significant waste of law
enforcement resources caused by the excessive number of false
alarms, there are service charges assessed as follows:
§
More than three (3)
false alarm activations in ANY 12 month period shall be assessed a
$100.00 service charge per occurrence.
ALARM PERMIT RENEWAL EXEMPTIONS
Senior citizens
renewing an alarm system permit for a residence is exempt from the
annual renewal fee.
To obtain an
exemption, the senior citizen must provide documentation that they
are the responsible party for the alarm system, along with
satisfactory proof of age (60+). Granting of the exemption shall
not excuse the requirement of annually renewing an alarm system
permit.
Disabled persons
renewing an alarm system permit for a residence is exempt from the
annual renewal fee. To obtain the exemption, a disabled person must
be the person responsible for the alarm system, and must present
satisfactory proof of disability as defined in California Vehicle
Code Section 295.5. Granting of the exemption shall not excuse the
requirement of annually renewing an alarm system permit.
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WHERE TO START?
One of the most important factors in starting your business is
selecting a location. Prior to entering into any purchase, lease or
rental agreement, we suggest that you consult with the Planning
Department at (310) 952-1761 to ensure that your business activity
will be permitted at the location you have selected.
If you will be engaging in the sale of tangible properties, a
Seller’s Permit is required. Contact the State Board of
Equalization.
For employment tax information, please contact:
§
State employment
Development Department
§
Internal Revenue Service
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Franchise Tax Board
For fictitious business name (D.B.A.), contact the L.A. County
Bureau of Fictitious Names or a local newspaper: L.A. Times, Daily
Breeze or Press Telegram.
For general assistance in operating your business, contact the Small
Business Administration.
The Carson Chamber of Commerce (310) 522-5595 is also a good
source of information for business operators.
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