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RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 05/21/2019 <br />AGENDA REPORT AGENDA HEADING: Regular Business <br /> <br />AGENDA DESCRIPTION: <br /> <br />Consideration and possible action to receive information related to the collection of <br />business license tax from home occupancy businesses and businesses categorized as <br />“outside businesses” and the potential modification to language in Section 5.04.050 of <br />the Municipal Code <br /> <br />RECOMMENDED COUNCIL ACTION: <br /> <br />1. Receive and file this report related to business license tax collected from home <br />occupancy businesses and businesses categorized as “outside business”; <br />2. Eliminate the collection of business license tax from home occupancy <br />businesses; and <br />3. Request that the City Attorney draft new language related to business license <br />tax in all relevant sections of the Municipal Code. <br /> <br />FISCAL IMPACT: Reduction in the 2020 calendar year business license tax revenue <br />in the amount of $53,000 <br /> <br />Amount Budgeted: $904,100 <br />Additional Appropriation: N/A <br />Account Number(s): 101-300-0000-3210 <br /> <br />ORIGINATED BY: Christopher Browning, Senior Administrative Analyst <br />REVIEWED BY: Deborah Cullen, Director of Finance <br />APPROVED BY: Doug Willmore, City Manager <br /> <br /> <br />BACKGROUND AND DISCUSSION: <br /> <br />At the March 19, 2019, City Council meeting, Staff presented an analysis of business <br />license tax (BLT) revenue and business licenses issued. The City Council members <br />requested further review of BLT revenue for home occupancy businesses as well as a <br />review and possible clarification of the language in the Municipal Code relating to <br />businesses located outside of the City. <br /> <br />In general, the City has a passive approach to collecting BLT. For home occupancy <br />businesses and businesses located outside City limits, the City relies on the owner to <br />self-report and obtain an annual business license. If the business does have an <br />interaction with the City, Staff will confirm if there is a valid business license. For <br />example, business owners who come to either the Public Works or Community <br />Development counters to request a permit or inspection, etc., would be asked if they <br />1