TITLE
Recommendation to adopt resolution providing for a temporary amnesty period for unlicensed businesses. (Citywide)
DISCUSSION
The City has successfully participated in the Local Government Sharing Program (AB 63
Program) for the past year. Through the AB 63 Program, the City receives from the
Franchise Tax Board (FTB) a list of the businesses that filed an income tax return using a
Long Beach zip code. Using this list, City staff has licensed 750 businesses this year that
had not previously been licensed. Cross-referencing the list of businesses from the FTB
with existing business licenses was difficult at first; however, with new software and a year's
worth of experience, staff has improved in identifying businesses without a license. In 2006,
staff expects to double the effectiveness of the program by licensing an additional 1,500
businesses.
In conjunction with the AB 63 Program, the City offered an Amnesty Program to facilitate
voluntary compliance, by giving the newly identified businesses 30 days to apply for a
business license and not be subject to three-years back taxes and penalties. Once a
business is licensed, it pays business license tax annually. Due to the success of the AB 63
Program, the City renewed the agreement with the State for another year. Currently, the
Amnesty Program expires on December 31, 2005. The attached resolution will continue the
Amnesty Program for one year (through December 2006).
This matter was reviewed by Deputy City Attorney Carol Shaw on December 1, 2005 and
by Budget Management Officer David Wodynski on December 8,2005.
TIMING CONSIDERATIONS
City Council action on this item is requested on December 20, 2005, as the program cannot
become effective on January 1 , 2006 without City Council approval.
FISCAL IMPACT
Should the City realize 1,500 new business licenses from the combination of the AB 63
program and the Amnesty Program, as much as $300,000 in additional revenue would be
deposited into the General Fu...
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