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Recommendation to receive and file a report on recommendations on business license taxes and business fees with regard to the COVID-19 pandemic;
Approve recommendation to allow deferral of payment of business license taxes and fees until March 31, 2021; and
Approve a recommendation to provide for grants to businesses to offset business license taxes and fees for those businesses closed or materially restricted and impacted for an extended period of time due to the City Health Orders, with an estimated and maximum cost of $1.3 million plus administrative costs of $75,000. (Citywide)
DISCUSSION
Since the onset of the pandemic, the City has taken a number of substantive steps to aid businesses impacted by the COVID-19 pandemic and the associated Safer at Home Health Orders, including various assistance and grant programs, emergency loans, technical assistance, unemployment insurance benefit support, special permitting, payment plans, and the deferral of business license taxes and business-related fees, including health and fire fees, through November 30, 2020.
On August 4, 2020, the City Council asked staff to provide additional options for relief to restaurants and other businesses for license taxes and health, fire, and business licensing fees. An initial update regarding this request was provided on August 17, 2020, and a second update was provided October 9, 2020 (both attached). The purpose of this report is to provide the City Council with requested background information regarding business license and inspection fees as well as to provide specific recommendations to provide additional relief to businesses hit particularly hard by the impacts of COVID-19 and related closures.
Background
In Fiscal Year 2019 (FY 19), a normal, non-pandemic year, the City collected approximately $24 million in taxes and fees from businesses, including about $4.8 million in cannabis tax revenues ($19.3 million not including cannabis). This is approximately the amo...
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