HomeMy WebLinkAboutRPT 3 BUS LIC FEES 12-06-82DATE:
December 6, 1982
REPORTS
12-6-82
NO. 3
Inter-Corn
FRON:
SUBJECT:
Honorable Mayor & City Council Members
Community Development Department
Business License Fees
BACKGROUND & DISCUSSION
Attached is a copy of the survey conducted of several Orange County cities
showing business license fees that would be charged hypothetical businesses
in each jurisdiction. Also attached are graphs demonstrating the
differences between the Tustin fee schedule and the average charged by
survey cities that utilize a "gross receipts" method in determining the
appropriate fee.
Because of the various methods other cities use to detemine license fees
(e.g., based on gross employee payroll, number of employees, single rate
for all businesses, etc.), it is felt that attempting to get an overall
average or median fee for a particular type of business would not be a
meaningful factor in assessing Tustin's status. Therefore, the Council is
supplied with the raw numbers of each city surveyed and the comparison
charts only use figures from cities that use "gross receipts" in
calculating fees comparible to the Tustin schedule.
As can be seen by the charts, Tustin is below the County average for fees
charged for retail sales and manufacturing in all categories listed. The
discrepancy is not significant at the lower end of the scale. However, the
difference for those businesses with high gross receipts is substantial.
This is because of the arbitrary cap placed on gross receipts at
$600,000.00 at an earlier period which has not been modified to keep pace
with inflation. Staff believes a modification of our fee schedule for the
higher ranges of gross receipts is clearly justified. Other cities, such
as Irvine, in the lower group of revenue generators, are distinctly
considering fee revisions.
RECOFI~NDATION
If the Council concurs some modification to the Tustin business license fee
schedule is necessary, it is recommended that staff be directed to seek
input from the Chamber of Commerce and produce alternative amendments to
the fee schedule which would put us more in line with other communities,
yet remain sensitive to the concerns of the business community.
JSD:jh
RETAIL SAL£S
1200
Business
License
Fee
1100
1000
900
8OO
700
6OO
500
250
150
100
50
25
$25,000
$100,000
Average of Surveyed Cities
Tustin ~
$600,000
$1,000,000
$10,000,000
Gross Receipts
Business
License
Fee
60O0
5000
4000
3000
2000
1000
500
NANUFA~TURI#G
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Gross Receipts
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Average of Surveyed C~i;~es
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