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r JAN 111994 Penalty for failure to pay license tax: BOOK 91, FA JE 515 A penalty of up to $250 may be imposed if tax is not paid within 11150 days after initial notice of tax due". The Tax Collector sends out invoices in August. I believe this is sufficient to constitute initial notice so that the 150 days starts from that time. A follow-up notice should probably be sent but the 150 days will run from the August notice. This is an additional tool to help with timely collections. It does not supersede CEB penalties that may also be imposed. Implement the new system: If a county fails to implement the occupational license tax under the new provisions, i.e., use of Equity Study Commission by October 1, 1995, then the County will always thereafter remain under state control. Therefore, even if the County doesn't intend to raise occupational license taxes it is still advantageous to go through the Equity Study Committee procedures. This establishes flexibility for the future. Equity Study Committee: The main function of this committee is to establish tax equity among the various business classifications. Inasmuch as committees are required to be composed of local business people, there may be concern that the Committee would invariably recommend large reductions in taxes thus presenting the governing body with a politically unacceptable problem. However, in establishing the Equity Committee, guidelines may be established with respect to their marching orders. For example, the committee could be directed to bring back a plan which brought in the same revenue as last year. Thus their main function would be to establish equity among the various classifications. Revenue Base: The new law allows an increase of the revenue base by 10%. a) Municipalities - Revenue Base Total collected by the municipality plus revenue received from the County. This assumes municipality is taxing at 100% of what is allowed - I believe the City of Vero Beach is at 100%. b) County - Revenue Base Total collected by the County minus distribution to municipalities. This also assumes that the County is taxing at 100%. If taxing at less than 100% can change the "total collected by the county" to total that would have been collected if the County were at 100%. If the County wants to collect only in the unincorporated area it may do so and, therefore, not have any distribution to the municipalities. The problem here is determining the revenue generated just by the unincorporated area. Summary: Indian River County should establish an Equity Study Committee with strict guildelines . A draft Resoultion establishing the Equity Committee is attached for Commission consideration. Indian River County should then enact its occupational license tax under the new rules so it can be master of its own destiny. In view of the complexity of the new law and the need for an indepth analysis of the current rate structure by the Equity Committee, the enactment of a new ordinance will be a slow process; however, the final date to enact the ordinance is October 1, 1995 and that is a readily attainable goal. 72 M M _