9.
City Council Work Session
- Meeting Date:
- 05/08/2018
- Co-Submitter:
- Rick Tadder
- From:
- Sandy Corder, Revenue Director
TITLE
Discussion/Direction: Staff Proposed Amendments to Chapter 3-01 Business License Regulations
STAFF RECOMMENDED ACTION:
Council Direction.
EXECUTIVE SUMMARY:
This work session item will provide an overview of the proposed key amendments to the Business License Regulations, as well as recommended changes in associated Business License and Transaction Privilege Tax (TPT) fees. The goal is to seek input and direction from Council.
INFORMATION:
The City's Revenue Director and Senior Assistant City Attorney will present information on staff proposed amendments to the Business License Regulations, as well as recommended changes in associated Business License and Transaction Privilege Tax (TPT) fees.
City staff is proposing amendments to Business Licensing Regulations to obtain a complete picture of all businesses located within the City and to help with code compliance. The City currently only requires a business license for certain occupations. The City requires a local transaction privilege tax (TPT) license, but this is now issued by the Arizona Department of Revenue (ADOR). ADOR relies on the City and taxpayers to update its records.
The City Council in the past has directed staff to work on new Business Licensing Regulations. The proposed changes are outlined in the attached handout. The proposed fee changes have been posted on the City website and social media. City staff presented the proposed changes to the Chamber of Commerce Business Advocacy Group on April 19th, and to the Downtown Business Alliance group on April 30th. City staff hopes to meet with other community groups as well before the final adoption of changes.
The primary changes are:
1. All businesses located within the City must obtain a business license unless exempted by law;
2. The business license fee will be reduced from $20/year to $8/year (the City is able to reduce the annual fee because more businesses will now be licensed);
3. The local TPT license fee will be changed from $46/one time to $38/year (the City is seeking to recoup the $150,000/year being charged to the City by ADOR for local tax administration);
4. Peddlers and solicitors will no longer have a separate licensing system, they will obtain a business license.
City staff is proposing amendments to Business Licensing Regulations to obtain a complete picture of all businesses located within the City and to help with code compliance. The City currently only requires a business license for certain occupations. The City requires a local transaction privilege tax (TPT) license, but this is now issued by the Arizona Department of Revenue (ADOR). ADOR relies on the City and taxpayers to update its records.
The City Council in the past has directed staff to work on new Business Licensing Regulations. The proposed changes are outlined in the attached handout. The proposed fee changes have been posted on the City website and social media. City staff presented the proposed changes to the Chamber of Commerce Business Advocacy Group on April 19th, and to the Downtown Business Alliance group on April 30th. City staff hopes to meet with other community groups as well before the final adoption of changes.
The primary changes are:
1. All businesses located within the City must obtain a business license unless exempted by law;
2. The business license fee will be reduced from $20/year to $8/year (the City is able to reduce the annual fee because more businesses will now be licensed);
3. The local TPT license fee will be changed from $46/one time to $38/year (the City is seeking to recoup the $150,000/year being charged to the City by ADOR for local tax administration);
4. Peddlers and solicitors will no longer have a separate licensing system, they will obtain a business license.