HomeMy WebLinkAboutPRESENTATION - BUSINESS LICENSE PROGRAMBUSINESS LICENSE
PROGRAM
A October 15, 2013
BUSINESS LICENSE PROGRAM
Tustin Municipal Code, Chapter 5, Section Z51Z Business
License "requires any person that transacts and/or does
business in the City must procure a City License."
The City code indicates that io99 contractors are
considered businesses and must obtain a license. However,
if a business has employees that are W -Z status, only the
business itself must obtain a license. Please see California
Supreme Court Case Migliori vs. City of Newport Beach,
Case No: 30-2011-005o8986-CL-JR-HLH.
BUSINESS LICENSE PROGRAM
Recommendation i. Example "AMNESTY PROGRAM"
• A realtor's business is registered in Tustin under 1o99
status, or his/her broker is registered in Tustin but has
not obtained a business license to conduct business or
transactions since starting business in Zoic, then the
realtor would be required to pay a license fee for Zoic,
2012, 2013, and going forward.
• If the associated broker to this realtor is registered to
Tustin, both would be required to obtain a license for
said period above. If the broker employs the realtors
under W -Z status, only the broker would need a
business license for the said period of time above.
3
BUSINESS LICENSE PROGRAM
Recommendation 2. Example "PENALTIES"
• Under the new program, if a realtor and/or broker has
been charged penalties, the City will refund the realtor
and/or broker who paid the penalties from the current
plus three years back (current year plus three years back
is the statutory limit for assessing penalties) given the
business has been active since Zoic.
:9
BUSINESS LICENSE PROGRAM
Recommendation 3. Example "LICENSE FEES"
• Under the new program, if a realtor and/or broker paid
for a license in Tustin covering from 2000 until 2,013, the
City will refund all business license taxes from 2.000 to
2010.
• The realtors and brokers, if in business in 2,011, will still
have to pay the business license tax from 2011 to current
and going forward.
I
BUSINESS LICENSE PROGRAM
OR Recommendation 4.
• If Council desires a policy change, direct staff to prepare
a modification to Municipal Code, Chapter 5 and bring
back the proposed changes at a future City Council
meeting for consideration.
6