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ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AMENDING MUNICIPAL CODE SECTION 5.24.020.A (DELINQUENT TAXES — PENALTIES) TO RETAIN EXISTING MAXIMUM PENALTY AMOUNT WHILE MODIFYING TIMING OF PENALTIES WHEREAS, the city's business license tax has been imposed on businesses and persons conducting business in Pleasanton for revenue and regulatory purposes since at least 1919 (Ord. 113); and WHEREAS, the current structure of a 5% penalty each month, up to a maximum of 50% after ten months has been ineffective in encouraging timely renewals because the penalty of 5% is only $1.25 for the most common category of business with a $25 business license fee; and WHEREAS, to encourage timely renewals, make penalties sufficient to motivate compliance, have penalties similar with other California cities, and reduce costs for multiple notices, the city desires to maintain the current 50% maximum penalty, but change the timing of penalty assessments to meet these policy interests. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Amends Municipal Code section 5.24.020.A Delinquent taxes — Penalties as follows: 5.24.020 Delinquent taxes—Penalties. A. For failure to pay the license tax when due, the collector shall add a penalty of: 25 percent of said license tax on the first day of February: and 50 percent(non-cumulative) of said license tax on the first day of March. When the first day of the month falls on a day when the City Hall is closed, payment of the license tax due may be made on the next working day without penalty. Any license issued pursuant to this title may be suspended by the collector upon the failure of the licensee to pay any charges imposed by this title within 60 days after such charges or reports become delinquent. No license shall be issued, nor one which has been suspended or revoked shall be reinstated or reissued, to any person, who at the time of applying therefore, is indebted to the city for any delinquent license taxes, unless such person, with the consent of the collector, enters into a written agreement with the city, through the collector,to pay such delinquent taxes, plus five percent simple annual interest upon the unpaid balance, in monthly installments, or oftener, extending over a period of not to exceed one year. B. (no changes}