Under existing law, an occupational license tax based on income may be levied by a municipality on certain persons gainfully employed in the municipality. This bill would enact the "Family Income Protection Act." This bill would incrementally reduce any occupational license tax levied by a municipality greater than one percent based on an annual reduction in the percent of the tax until the tax would be one percent. This bill would provide that any occupational license tax levied by any municipality would not apply to any person performing an occupation in the police jurisdiction of the municipality or on any property annexed into the municipality after January 1, 2023. This bill would provide a referendum under certain conditions in any county in which two or more municipalities levied an occupational license tax greater than one percent on January 1, 2023. This bill would prohibit any municipality from levying a new occupational license tax or increasing any existing occupational license tax. This bill would provide certain exceptions from occupational license taxes for certain temporary SB65 SB65 INTRODUCED INTRODUCED workers and for severance pay. This bill would also specify that the power of a municipality to license an exhibition, trade, business vocation, occupation, or profession only applies to activity engaged in or carried on in the municipality; would further provide for refund procedures for any remittances based on activities of licensees outside of the jurisdiction of a municipality; and would further provide for remittance procedures by employers.

Statutes affected:
Introduced: 11-51-91