All business license tax amounts shall be annually adjusted in accordance with the formula set forth in this section.
(A) (1) In May of each year, commencing in 1994, the Finance Department shall determine the April cost- of-living standard as indicated by the Consumer Price Index as prepared by the United States Department of Labor, Bureau of Labor Standards, for the “All Urban Consumers” category of the Los Angeles-Anaheim-Riverside metropolitan area. The index base year to be used shall be 1993 = 442.8 or subsequent indices as may be adopted by the City Council.
(2) The index level for April shall be compared with the index level for April of the preceding year. The percentage increase or decrease shall be applied to all of the dollar amounts contained in the current business license tax resolution adopted by the City Council. The base level for business license taxes shall be as established by Resolution No. 93-52. These percentage increases shall be applied as set forth in division (D) of this section.
(B) The annual adjustment shall not become effective unless specifically adopted by resolution of the City Council. The City Council may modify any tax calculated pursuant to division (A) of this section as the Council may deem appropriate, provided however, that the increase for any single year shall not exceed the limitation set forth in division (C) of this section.
(C) Regardless of the increase in the Consumer Price Index, no basic business license tax increase shall exceed 5% in any single year. There shall be no limit on the percentage of decrease.
(D) Exact dollar amounts determined pursuant to this section shall be used from year to year to calculate business license taxes adjusted for changes in the cost-of-living standard. The tax rate to be charged each business, occupation, and profession shall be the calculated tax rounded downward to the nearest integral dollar, and shall be the rate in effect for the following fiscal year.
(`83 Code, § 5.12.020) (Ord. 93-21 § 6, 1993)