Business License Tax Audit Program Report

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City of Berkeley Office of the City Auditor Ann-Marie Hogan, City Auditor Business License Tax Audit Program Report For Year Ending June 30, 2001 Prepared by: Ann Marie Hogan, City Auditor, CIA, CGAP Teresa Berkeley-Simmons, Audit Manager, CIA, CGAP Rosario Riche, Auditor I Presented to Council September 17, 2002 2180 Milvia Street, Berkeley, CA 94704 Tel (510) 981-6750 Fax (510) 981-6760 BUSINESS LICENSE TAX AUDIT PROGRAM REPORT For the Fiscal Year Ended June 30, 2001 Table of Contents Page No.. Of these, 4,720 parcels appear to be subject to the licensing requirement of the Berkeley Municipal Code (BMC) Chapter 9.04.195, “ Every person engaged in the business of renting or letting a building structure or other property…except property designated for and used exclusively for residential use which contains fewer than three dwelling unit, shall pay an annual license fee as provided in Section 9.04.240 for each thousand dollars gross receipts.” Berkeley Real Properties (Landuse as defined by the Alameda County and adopted for Business License Taxation) Landuse NOT subject to BMC Section 9.04.195 - Rental of Real Property 84 Landuse subject to BMC Section 9.04.195 Rental of Real Property 16 We analyzed and reviewed 267 parcels containing rental properties (6 of 4,720) for Business License tax compliance.. Auditor’s Office Business License Tax Revenues Identified through Audit Fiscal Year FY00/01 Unlicensed Businesses Underreported Gross Receipts Delinquent Licenses TOTAL Of Hours Spent on Business License Total FTE ( 80 Productive Time) 234,505 1915 1,875 216,236 1,553 .93 7,283 36,591 339,197 2,536 1.52 209,723 6,466 36,175 252,364 835 .50 FY96/97 91,798 32,468 23,769 148,035 783 .47 FY95/96 215,249 186,901 0 402,150 689 .41 FY94/95 95,189 0 18,474 113,663 522 .31 TOTAL 1,355,214 234,052 116,884 1,706,150 8,833 5.29 233,571 933.76 0 FY99/00 214,361 0 FY98/99 295,323 FY97/98 1.15 City Auditor s Office Business License Revenues Identified Through Audit Seven-year Com

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