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REVIEW OF OCCUPATIONAL LICENSE TAX Assistant County Attorney Terry O'Brien commented from the following memo dated January 7, 1993: TO: James E. Chandler, County Administrator FROM: Terrence P. O'Brien, Assistant Co ty Attorney-Tfa Joseph A. Baird, Budget Directo DATE: January 7, 1993`�j RE: Review of Occupational License Tax I. Background Indian River County has for a number of years imposed an occupational license tax on businesses and professions doing business in the County. In the 1974 edition of the Indian River County Code this tax was set forth in Chapter 15 "Licensing and License Tax". A new code edition was begun and Chapter 15 became Chapter 207. The transition to the new Code was largely editorial; however, there appeared to be areas where the tax was not equal. Professional corporations and partnerships paid an occupational license tax as well as the individual or individuals who made up the corporation or partnership. In the case of the real estate agents they were not required to pay an occupational license tax because they lacked the same independence as a lawyer or other professional in that they are required by law to work for a broker. These matters were addressed by the Board of County Commissioners previously. However, the Board of County Commissioners directed the staff to review, in depth, the entire occupational license tax area and report back. II. Statutory and Operational Background Counties and municipalities are authorized by the "Local Occupational License Tax Act" (Chapter 205 F.S.) to charge a fee for the privilege of engaging in or managing any business, profession, or occupation within its jurisdiction. This fee is unrelated to any fee or license paid to any board, commissioner or officer for permits, registration, examination or inspection which are regulatory in nature. The occupational license tax fee is in addition, but not in lieu of, any regulatory fee. A fee or tax may be imposed for the purpose of regulation or revenue. When the purpose is regulation, the fee should include the expense of issuing the license, the cost of' necessary inspection and surveillance connected with the business or profession licensed, and all incidental expenses that are likely to be imposed upon the public in consequence of the business or profession licensed. When the purpose the license tax payment gives the right to carry on the profession without any further condition. It may include precedent such as a state license for a lawyer, doctor, broker, and other such regulatory licensed activities. 41 is revenue, business or a condition real estate JAN 26 1993 BOOK 88 RGE 667 J