To: Honorable Mayor and Members of City Council
From: Vin Smith, Community Development Director
Prepared By: Neal Harrison, Development Project Coordinator
TITLE:
Title
Downtown Business Promotions Tax Area - 2021 Levy of Taxes
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution levying taxes in the Downtown Business Promotions Tax Area (DBPTA) for 2021 in accordance with Napa Municipal Code Chapter 3.28; and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
On June 2, 2020, the City Council approved the "2021 Annual Report and Budget for the Downtown Business Promotions Tax" (DBPTA) and adopted a Resolution of Intention to hold a public hearing on June 16, 2020 to levy the business license taxes. To implement the State of California Streets and Highways Code Sections 36000, et seq., and per the terms of City Agreement 9354, "Napa Downtown Association Agreement, Management of Assessment Districts," with the Napa Downtown Association (NDA) a public hearing notice has been published and posted to notify the public of the availability for review of all documents relating to the improvements and activities of the Downtown Business Promotions Tax Area. The tax rate is set by ordinance and provided for in the Napa Municipal Code Chapter 3.28 "Napa Parking & Business Improvement District": a promotional marketing tax equal to 40 percent of the business license fee. This revenue is collected by the City and managed by NDA for administrative and marketing purposes to benefit the businesses within the DBPTA.
FINANCIAL IMPACTS:
The recommended action results in no financial City obligation or impact to its General Fund, but there are costs related to City staff time for financial accounting and preparation of staff reports and resolutions. The DBPTA tax revenue, equal to 40 percent of the business license tax, is collected by the Finance Department and remitted monthly to the NDA.
CEQA:
City staff recom...
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