HomeMy WebLinkAboutRPT 2 B.L. AMNESTY 12-21-92REPORTS NO. 2
12-21-92
Inter -Com ��,
ATE: DECEMBER 21, 1992 s1
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: BUSINESS LICENSE AMNESTY PROGRAM - 3.992
RECOMMENDATION
Receive and file.
BACKGROUND
On May 4, 1992, the City Council introduced Ordinance No. 1087 to
re-enact the Business License Amnesty Program. The purpose of the
Program, which ran from July 1 through September 30, 1992, was to
encourage new and delinquent businesses to comply with the City's
business licensing laws without prosecution or payment of penalty
fees.
Tustin City Code 2521(c)(d) requires new businesses to obtain a
business license "immediately prior to commencement of business"
s and identifies them as "delinquent on the first day of commencement
of business." All annual license taxes are "due and payable in
advance on the first day of January of each year." Penalties for
failure to pay when due are computed on the business license tax
amount at the rate of 25% per month after the due date not to
exceed 100%. Although all penalties were waived, Ordinance No.
1087 did authorize the City to collect a maximum of three years'
back taxes.
CONCLUSION
During the Amnesty period, 102 delinquent new business licenses and
65 delinquent renewal business licenses were processed. The
following is a breakdown of recovered revenue by delinquency
periods (amount of time past -due).
ONE - FOUR MONTHS ONE YEAR TWO YEARS THREE YEARS
NEW $1,105.75 $ 970.00 $1,149.25 $1,734.25
RENEWAL $2,526.00 $ 910.00 $ 120.00
TOTAL REVENUE GENERATED $ 8,515.25
-- City Council Report
Business License Amnesty Program - 1992
January 4, 1993
Page 2
The Amnesty Program resulted in the licensing
ofbus total
of 102
that
delinquent new businesses and n 5 delinidentified. i nt ren wal Now that they are
otherwise may not have b
identified, they have been incorporated or renewal ata bThis
insures automatic future notification f anddelinquent
notices. Additionally, the Program enhanced awareness of the
City's business license tax requirements while demonstrating good
will towards the business community during a time it is felt at theolonecnomlc
hardship. Based on the above resultstrevenueloss that waiving
term benefits off -set any short-term
penalty fees during this period may have caused.
Christine A. ShinAoebtOn
Assistant City Ma ager
NM:CAS:amnesty.nm
Nena McNamara
Department Clerk/Business
License