HomeMy WebLinkAbout11 BUS LICENSE AMNESTY 08-04-97" ..... 'Ei'DA
DATE:
AUGUST-4, 1997
NO.'~ 11
Inter-Com
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUSJEOT: REQUEST FOR a 30-DAY BUSINESS LICENSE AMNESTY PERIOD FOR IN-CITY
BUS INES SES
RECOMMENDATION
That the City 'Council approve a 30-day Business License Amnesty
Program.
FISCAL IMPACT
Adoption of a 30-day Business License Amnesty Program could have a
fiscal impact upon the City's business license related to revenues.
Assuming that all delinquent taxes and penalties could be
collected, the total revenues would be approximately $41,680.
Through the Amnesty Program, the City would have the potential to
collect delinquent taxes without penalties amounting to
approximately $20,840.
BACKGROUND/DISCUSSION
Tustin City Code 2521c requires a penalty of 25 percent per month
to be assessed on all business licenses not renewed by January 31.
The penalty has a maximum established rate of 100 percent, the
penalty freezes at 100 percent on all payments received after May
1. There is currently no provision in the Tustin 'City Code for
waiver of .penalties.
Over the past seven years, the 'City Council has approved three,
three-month Amnesty Periods with the intent of encouraging
unlicensed delinquent businesses to comply with Section 2512(a)
which requires a City business license.
The Community Development Department is recommending an Amnesty
Period for delinquent in-city businesses only for a limited time of
30 days.. The City has experienced on-going computer difficulties
City Council Report
Business License Amnesty Program
August 4~ 1997
Page 2
associated with the new business license software which has delayed
release of the delinquency notices by three months. The computer
and software conflicts have been resolved. The City has also
experienced an unusually high volume of calls from business owners
stating they never received the City's courtesy renewal notice for
1997o Business License records indicate 578 delinquent accounts.
Historically approximately 10 percent of delinquent accounts are
found to be businesses no longer operating in the City and
therefore .would not be paying fees, leaving approximately 520
actual delinquent accounts. Approval of a 30-day Business License
Amnesty Period would identify businesses no longer operating in the
City, collect outstanding revenues, and foster good relations
between Tustin businesses and the City.
With the City Council's approval of an Amnesty Program, the
Community Development Department will send notices of the Amnesty
Program to each of the businesses who are delinquent.
~i~a To Westfield ~
Assistant'Director
EIlzabe~h A. Bins~ck ~ '
Community Development Director
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