'Business License' requirement for every band member/artist/entertainer

Started by Elantric, November 06, 2014, 11:58:36 AM

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

Elantric

Coming to a town near you!
https://www.facebook.com/pages/Friends-of-Pirates-Cove/335180159916471?hc_location=timeline


Quote
PUBLIC HEARING TONIGHT!!!! 11/6 MORRO BAY VETERAN'S HALL, 209 Surf St: The city of Morro Bay is proposing a $136 'business license' requirement for every band/artist/entertainer/craft maker ...

"If you don't throw down at the public meeting tonight at the Morro Bay Vet's Hall at 5 PM," says musician Billy Foppiano, "Morro Bubble will ream you! Get off yo ass and git it.Some Biz folks will be there...we need artists, craftsfolks, Yoga Teachers, Music teachers, whoevah!!!!!!!!!!!!!!!!! Be prepared for 3 minutes of riffin'."

DETAILS via Debbie McNair: When restaurants/ bars/ anywhere actually, engage the services of a musician or band, that individual or group MUST have a business license according to the proposed Ordinance 590. It's an addendum to the existing section 5.08.220 of the Municipal Codes of the City of Morro Bay.

http://ca-morrobay.civicplus.com/ArchiveCenter/ViewFile/Item/2245

Not only are musicians impacted, but artisans, crafts persons, personal attendants, housekeepers, mobile notaries, gardeners, mobile BBQ'ers, anybody who has a greenback cross their hand is effected by this proposed "law." It does NOT include agricultural sales such as those who vend at farmers' markets. A basic license fee is $136, however, IF you have more than one person in your 'group' whether it's a band or you're the Merry Maids tag team there is an additional amount imposed for every man/woman after the Principal. Certain exemptions DO exist, and anyone may apply for such, and then there is also an appeal from exemption process.

The bottom line, is if YOU don't want this to happen EVERY time you play a gig in the City of Morro Bay (public or private) you MUST attend the Council meeting TONIGHT 11/6/14 so your voice may be heard. We won't stand for any of your bitchin' later if you don't come out and try to stop this. Remember, it's not just musicians that will be impacted, it will be all of us. Trickle down economics will apply.... to everybody. I expect to see you all there. Don't forget, this is just the first of many towns that will attempt to enact such a law. Do you really want to be forced to pay $136 so you can work in EVERY town in the county? I thought not. Get there a little early so you have a place to park.

PLEASE CALL THESE PEOPLE TODAY!!!:

Mayor
Jamie L. Irons
Ph: (805) 550-6595
Email
Term expires: December 2014

Council Members
Christine Johnson
Ph: (805) 305-3759
Email
Term expires: December 2016

Nancy Johnson
Ph: (805) 772-3738
Email
Term expires: December 2014 George Leage
Ph: (805) 459-4119
Email
Term expires: December 2014

Noah Smukler
Ph: (805) 772-7668
Email
Term expires: December 2016


Elantric


My friend who was the most vocal about this works 3 days a week a solo guitarist performing at 3 restaurants in Morro Bay, thus it adds up !.


Reference:
http://www.newtimesslo.com/news/11672/business-time-a-morro-bay-business-license-audit-is-ruffling-feathers/

QuoteRecently hired Morro Bay City Manager David Buckingham said MAS was contracted to audit the past four years and will stay on board for another three years. In the first phase, the company contacted existing business license holders to determine whether any additional fees were owed. Over the remainder of its contract, MAS will search for businesses that are operating in or from outside Morro Bay without proper licenses. The city expects to find about $1.6 million in owed license fees, of which MAS will draw a 40 percent fee (about $640,000).

"Tax collection, while perhaps not very pleasant, is one of the things that governments do," Buckingham said, adding that the city had to cut its small batch of auditors in recent years. "The city has not effectively done this for six or seven years, and for the 10 years before that, it was doing it but perhaps not very effectively."

Under the terms of its contract, MAS is paid a percentage of the revenue it collects, a practice that has come under fire elsewhere. And other cities have dealt with backlash from local businesses as well. In February, the city of Alameda discontinued its business license audit program through MAS and issued a public apology to the local business community "for the way in which the Business License Tax Audit was conducted."

Asked if the fee-based payment method might hamper MAS' ability to objectively pursue taxes from businesses, Buckingham adamantly disagreed.

"I would not agree that they are being or can be subjective in their processes," he said. "They absolutely must follow the Morro Bay business license code, and they also have to follow state of California codes and auditing codes in the work that they're doing."

Buckingham noted that any business is allowed to appeal MAS' conclusions. The city had received about 10 appeals, he said.

However, the city did pull back on past collections after blowback from the first phase of auditing. Local musicians and artisans took to social media—using the handle, "Stop the Morro Bay Artist Tax"—to air fears that they would be taxed per gig, plus an additional fee for each member of a musical group.

"There's been a lot of chatter out there," musician Billy Foppiano told city councilmembers at a Nov. 6 special meeting. "That's why we're here, because we just want to get the facts, and we want Morro Bay to thrive."

At that meeting, councilmembers directed city staffers to review the city's municipal code and tax rate structure and make revisions over the next few weeks. They also approved an amnesty period—which will end March 13, 2015—that allows businesses to pay back taxes without penalties, and businesses that paid penalties are entitled to refunds. The city also agreed to reduce license fees for businesses that draw less than $12,000 in gross annual receipts.


Elantric

The saga continues

Posted today 9/20/2015

Ted Waterhouse
https://m.facebook.com/ted.waterhouse.5?lst=1196565997%3A100000772833810%3A1442773242&fref=nf&pn_ref=story
QuoteDear friends:
I need your help. A lot of you know me from the music scene around SLO County, the Real Blues Jam, Catalina Eddy and the Blue Keys, the Viper Six etc. I've got a problem I need to network on here and some of my music pals may be able to help. I recently received a bill from the City of Morrow Bay for past due business taxes of $135.92 for each year 2012 to 2015 PLUS a penalty equal to the amount of the tax for each year, a Whopping $962.82, due within 30 days or there will be an additional 10% penalty. This notice was the first notice I received that I was suppose to have a Business License to play in Morro Bay as no city has ever mentioned this before. This is nothing but official robbery as far as I am concerned.  I have heard that other musicians working in Morrow Bay have been through this but I have not yet been able to actually speak to another musician affected by this to find out how they dealt with this, who they contacted, and what the out come has been. If you or someone you know has experienced this shake down by the City of Morro Bay I need to speak to you ASAP. Please message me with your phone number. Thank you! TW

chrish

Social gatherings have value to a community beyond that which the taxman can collect. I wonder if folks who perform religous (spirtual) music are subject to this tax?

gumtown

Quote from: chrish on September 20, 2015, 05:26:41 PM
Social gatherings have value to a community beyond that which the taxman can collect. I wonder if folks who perform religious (spiritual) music are subject to this tax?
That is a good point, around these parts, Church/Religious organisations are Tax Exempted, and when you look at the business model that the likes of TV Evangelists use, they are on a winner, money that people throw at you, and not pay a dollar tax on it.

So you should start your own religion of Rock, register as a religious organisation and not worry about a tax bill ever again.

The other alternative is to register as a tax exempt Charitable Organisation which spends 99% of it's donations on administrative costs.

The last alternative is to become a Politician and be exempt from any thing (except scandal).
Free "GR-55 FloorBoard" editor software from https://sourceforge.net/projects/grfloorboard/

shawnb

It's business related.  If you're making money doing the gig, selling shirts or CDs, etc., you're in business.   

Worship bands don't bill the church, hence it's not a 'business'. 

Business taxes are usually in two parts:
   (a) a business license to operate in the city/jurisdiction
   (b) a portion based on volume/gross receipts (sometimes and/or payroll, too)

Many cities have a minimum tax, and the gross receipts portion doesn't really apply unless you're making a fair chunk of change.   But what usually applies is the license itself. 

Many cities have a "determination" process, in which, if you don't file, they "determine" what they think you owe.  In most cases, this is deliberately high to scare you into filing & get legal. 

Most of the time, a talk with the tax collector & coming clean will erase penalties & wild "determination" amounts.  I suspect coming clean & claiming hardship may reduce the amount owed.   It never hurts to try.  (Where it can get difficult is when the city hires 3rd party collectors.  They are paid a portion of what they collect.  They are NOT motivated to cut deals.  If possible, work directly with the tax collector.)

If you make income & don't register, I suspect this is a legit risk in just about any city. 

If in doubt, it's probably worth a call to your local tax collector (or visit to their website) to see if there are exemptions for musicians, or exemptions due to low gross receipts.  Better to know than not know. 
Address the process rather than the outcome.  Then, the outcome becomes more likely.   - Fripp

shawnb

Looks like Morro Bay has a "Low revenue business" exemption that applies to the license itself.  I suspect it applies, & may drastically reduce the tax bill described above:
http://www.morro-bay.ca.us/DocumentCenter/View/7809
Address the process rather than the outcome.  Then, the outcome becomes more likely.   - Fripp

Elantric

Quote
Ted Waterhouse wrote>

Hey Friends:
Wanted to let you know that this whole can o' worms with Morro Bay got entirely resolved this morning. Whew! I got a voicemail from Susan Slaton at Morro Bay city hall lettng me know that: Yes it's true that "cafe musicians" are exempt from the whole city business tax thing and that she would personally contact Municipal Auditing Services to tell them to close my case as well as that of any other musicians they may be pursuing. I want to thank her as she was very courteous and helpful. If she hadn't been out last week on vacation, this would have apparently been resolved immediately. I'll have to say that Mr David Buckingham, the MB city manager was somewhat less helpful altogether as he could easily informed me of this on Friday last when we spoke and saved me and everyone else a huge amount of time, mental energy and emotional upheaval over the last 3 days. Not much appreciated there.
As for MAS, it's now clear that these folks are basically a collection agency: hired pit-bulls and appaently somewhat rogue without any real concern for fairness, only for lining their own pockets with whatever they can squeeze out of people.
The bottom line is, we have to get the word around so that no musicians get taken in by their scare tactics and coerced into paying them money. As you may have seen, I myself was ready to pay the $33 current business license fee until informed that am in fact exempt. No one should pay these people a cent! Lets get the word out. Share this with anyone you think of who might be in the line of fire.
If approached by MAS, a musician should immediately call either Susan Slaton (805)772-6217 or Jamie Boucher, the MB business tax clerk, (805)772-6294 to get things straightened out.
I want to thank all my friends who responed to this and especially Billy Foppiano, Stefan Rodman, Jaime Parker, Dorian Michael, Jeff Smith, Charles Duncan, Rob Livick, Louie Ortega, Madeline Royal and Steve Conrad as well as many others who helped out.
The only other thing I'll express is my sympathy for the people in other areas of the arts who are, as I understand it, still getting hit up for these taxes. All of it is just plain wrong, far as I can see. It doesn't reflect well on the city of Morro Bay that they should resort to hiring an unscroupulous outfit like MAS to raise revenue!