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