HomeMy WebLinkAbout2021-26 - Providing a One-Year Waiver of the Business License Tax Renewal for Businesses Required to Close by Order of the State of CaliforniaRESOLUTION NO. 2021-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA PROVIDING A ONE-
YEAR WAIVER OF THE BUSINESS LICENSE TAX
RENEWAL FOR BUSINESSES REQUIRED TO CLOSE BY
ORDER OF THE STATE OF CALIFORNIA
WHEREAS, -Section 200 of the Charter of the City of Newport Beach ("City")
vests the City Council with the authority to make and enforce all laws, rules and
regulations with respect to municipal affairs subject only to the restrictions and
limitations contained in the Charter and the State Constitution, and the power to
exercise, or act pursuant to any and all rights, powers, and privileges, or procedures
granted or prescribed by any law of the State of California;
WHEREAS, the City requires all businesses operating or conducting business
within the City to obtain a business license pursuant to Newport Beach Municipal Code
("NBMC") Section 5.04.020 (License and Tax Payment, and Fingerprinting Fee
Requirements);
WHEREAS, NBMC Chapter 5.08 (License Fee Categories) provides that
businesses shall pay an annual business tax as established by resolution of the City
Council;
WHEREAS, on January 31, 2020, the United States Secretary of Health and
Human Services announced a nationwide public health emergency, in response to the
COVID-19 outbreak;
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency to make resources available, formalize emergency actions, and help the
State of California prepare for the broader spread of COVID-19;
WHEREAS, as a result of COVID-19, Governor Newsom mandated the closure
of various businesses throughout this past year;
WHEREAS, California Government Code Section 4467(a)(2)(A) requires cities
that issue business licenses to collect a state fee of $4.00 from any applicant for a
business license or renewal thereof ("State Fee"), to benefit disability access and
compliance with construction -related accessibility requirements and to develop
educational resources for businesses to facilitate compliance with federal and state
disability laws, as specified therein; and
Resolution No. 2021-26
Page 2 of 3
WHEREAS, the City desires to help alleviate the impact of these closures for
those businesses impacted by Governor Newsom's closure orders who maintain a
current Newport Beach business license.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City does hereby waive the business license tax and agree to
pay the State Fee for those categories of businesses identified in Exhibit "A," which is
attached hereto and incorporated herein by reference, that are current with their
business license tax payments. The waiver and payment of the State Fee provided
herein shall commence on April 1, 2021 until March 31, 2022.
Section 2: A business that does not fit within a category identified in Exhibit
"A" may request a waiver from the City's Finance Director. Waivers may be granted to
a business, where the owner or operator demonstrates the business ceased operations
due to Governor Newsom's closure orders, could not conduct the business virtually, and
the business is current with their business license tax payments. For example,
professional service firms that may have closed their doors to the public, but were still
able to operate or meet with their clients remotely, would not qualify. The Finance
Director's decision whether to grant or deny a waiver shall be final. In the event a
waiver is granted pursuant to this Section 2, the City agrees to pay the business' State
Fee. The waiver and payment of the State Fee provided herein shall commence on
April 1, 2021 and continue until March 31, 2022.
Section 3: To qualify for the waiver and payment of State Fee provided herein,
a business must be commercially based, as that term is defined in Section 5.08.005(C)
(Business Tax — Definitions), in the City of Newport Beach.
Section 4: Refunds shall not be provided as a result of a business' change of
status or a change in the number of employees from the previous year.
Section 5: The recitals provided in this resolution are true and correct and are
hereby incorporated into the operative part of this resolution.
Section 6: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
Resolution No. 2021-26
Page 3 of 3
Section 7: The City Council finds the adoption of this resolution is not subject
to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2)
(the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6,
Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 8: This resolution shall take effect on April 1, 2021, and the City Clerk
shall certify the vote adopting this resolution.
ADOPTED this 23rd day of P"---� ''
ATTEST:
W1, �./.1L.�FAW,,Leitani I. br-own 17City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
- --
a on C. Harp
City Attorney
Attachment(s): Exhibit A - Newport Beach Business License Categories
EXHIBIT A
7241
BARBER SHOPS
7231
BEAUTY SHOPS
5181
BEER & ALE
5942
--BOOK STORES
5441
CANDY, NUT & CONFECTIONERY STO
8351
CHILD DAY CARE SVCS
5641
CHILDRENS & INFANTS WEAR STORE
5145
CONFECTIONERY
7911
DANCE STUDIOS, SCHOOLS & HALLS
5311
DEPARTMENT STORES
5813
DRINKING PLACES, BARS, COCKTAI
5812
EATING PLACES, RESTAURANTS
7929
ENTERTAINERS & ENTERTAINMENT G
5651
FAMILY CLOTHING STORES
5139
FOOTWEAR, SHOES
5712
FURNITURE STORES
5947
GIFT, NOVELTY & SOUVENIR SHOPS
5945
HOBBY, TOY & GAME SHOPS
5023
HOME FURNISHINGS, FURNITURE
5094
JEWELRY & PRECIOUS STONES
5944
JEWELRY STORES
7997
MEMBERSHIP SPORTS & RECREATION
5136
MENS & BOYS CLOTHING
5611
MENS & BOYS CLOTHING STORES
2024
MFG OF ICE CREAM & FROZEN DESE
7999
MISC AMUSEMENT& RECREATION SV
2389
MISC APPAREL & ACCESSORIES MFG
5399
MISC GENERAL MERCHANDISE STORE
5719
MISC HOME FURNISHING STORES
7299
5999
8299
8249
2339
7812
8412
7991
5461
5661
4725
4724
5932
4499
5137
5632
5621
MISC PERSONNEL SVCS
MISC RETAIL STORES
MISC SCHOOLS & EDUCATIONAL SVC
MISC VOCATIONAL SCHOOLS
MISC WOMENS & MISSES OUTERWEAR
MOTION PICTURE & VIDEO PRODUCT
MUSEUMS & ART GALLERIES
PHYSICAL FITNESS FACILITIES, G
RETAIL BAKERIES
SHOE STORES
TOUR OPERATORS
TRAVEL AGENCIES
USED MERCHANDISE STORES
WATER TRANSPORTATION SERVICES
WOMENS & CHILDRENS CLOTHING
WOMENS ACCESSORY & SPECIALTY S
WOMENS CLOTHING STORES
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven, the foregoing resolution, being Resolution
No. 2021-26 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 23rd day of March, 2021; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member Will
O'Neill
NAYS: None
ABSENT: Council Member Duffy Duffield
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 241h day of March, 2021.
c
Leilani I. Brown
City Clerk
Newport Beach, California