HomeMy WebLinkAbout19 - One Year Waiver of Business License Tax Renewal for Businesses Required to Close by Order of the State of California - PowerPointMarch 23, 2021
Item No. 19
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city
Council
March 23, 2021
Mayor Avery and Councilmember O'Neill requested
that staff explore the possibility of providing a one-
year waiver of the business license tax at the Council's
March g, Zo21, meeting
• Staff have developed a program to implement the
requested waiver for the Council's consideration
• Effective from April 1, 2021, through March 31, 2022, to
accommodate the City's rolling renewal schedule
City of Newport Beach —Finance Department 2
• Businesses identified by the City as required to Eligible Business Categor
close by the State are automatically eligible Restaurants and Bars
• Will receive a so renewal and have $4 State Department Stores
fee paid Furniture Stores
Jewelry Stores
• Appeal process for other commercially -based Clothing and Shoe Stores
businesses Book Stores
Bakeries
• Publicized in renewals
Dance Studios
• Will be required to demonstrate requirement
Child Care Services
to close via an online form
Tour Operators
• Must demonstrate that the could not
%� Hair and Nail Care
conduct business virtually
Gyms
* Partial Listing
City of Newport Beach —Finance Department
• 25,000 total businesses licensed by the City
• Identified businesses total 1.,850 out of 9,000 commercially -
based businesses
• Average tax paid is $294 per year
City of Newport Beach —Finance Department 4
•Overall fiscal impact
• s600,00o for identified businesses
• s60,00o allowance for other applications
• Additional $7,400 for State fees
• Impact by fiscal year
• s165,000
in fiscal
year202O/21
$495,000
in fiscal
year2021/22
• Revenue losses would be backfilled by budget surplus
funds on hand
City of Newport Beach —Finance Department 5
Staff recommends that the City Council:
• Authorize sone -year waiver of the business license tax
renewal for businesses required to close by the State of
California to be effective for renewals processed
between April 1, 2021, and March 31,2022;
• Direct staff to pay the required $4.00 per license fee to
the Division of the State Architect for these businesses;
and
• Adopt the related resolution and make the related
CEQA determination.
City of Newport Beach — Finance Department 6
Questions?
City of Newport Beach — Finance Department