HomeMy WebLinkAbout04 - Special Events Temporary Business LicenseSEW PpR
CITY OF
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C7< /F00.H�p City Council Staff Report
Agenda Item No. 4
April 26, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Tracy McCraner, Administrative Services Director/Treasurer
949 - 644 -3123, tmccraner @newportbeachca.gov
PREPARED BY: Monique Navarrete, License Supervisor
APPROVED: 45Z C
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TITLE: Special Events Temporary Business License Tax
ABSTRACT:
This proposal reduces the Temporary Business License Tax from $56.50 to $20.00 per
vendor at City authorized special events and streamlines the business licensing process
for the special event service organizers. The improvements are part of an effort to
enhance city services that make it simpler for special events to be successful in the City
of Newport Beach.
RECOMMENDATION:
Adopt the attached Resolution 2011 -_ which would
a. Reduce the business license tax for exhibitors, vendors and other event service
providers at permitted special events to $20.00. The fee can be adjusted
annually by the Consumer Price Index;
b. Require a special event organizer to include, with any special event permit
application, a roster of exhibitors, vendors and other service providers
participating in the special event; and
C. Require a special event organizer to collect such business license tax from each
of its exhibitors, vendors, and service providers, and remit such payment to the
City prior to the special event.
FUNDING REQUIREMENTS:
The impact to the General Fund is immaterial and hopefully will be offset by new events
that are encouraged to come to the Newport Beach because of the ease of doing
Special Events Temporary Business License Tax
April 26, 2011
Page 2
business with the City. Staff expects an annual decrease in revenue from $10,000 to
$3,000.00 per year.
DISCUSSION:
Pursuant to Title 5 of the Newport Beach Municipal Code, businesses in the City of
Newport Beach are required to obtain a business license from the City. The annual
business license tax is $226.00 for businesses located outside the City. Those
businesses that conduct business in the City only once are charged a tax rate of
$56.50.
In 2010, the Economic Development Committee formed a sub - committee comprised of
staff and committee members to analyze the business license tax procedures for
special events and review whether the apportioned tax amount discouraged business
participation in City- permitted special events.
The sub - committee ultimately advised that the business license procedure for special
events was cumbersome. In addition, event organizers risked losing participants
because of the cost and time involved in the process to collect the tax. Staff agreed and
worked with the Committee to streamline the six -step process.
The joint proposal would be effective on July 1, 2011, it is summarized below:
1. Event organizers would:
a. Provide City with a roster of participating vendors, exhibitors and other
service providers for its event;
b. Collect the $20.00 tax from each vendor, exhibitor, and service provider
and remit the amounts to the City;
C. Obtain a Special Events Business License prior to the special event;
2. This new process and tax shall only be available for those special events being
permitted through Recreation and Senior Services, e.g. - Taste of Newport,
Newport Beach Film Festival, Newport Boat Show.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
Special Events Temporary Business License Tax
April 26, 2011
Page 3
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
/�c t 0 ( COXOAVJ
` Tracy McCraner
Administrative Services Director/Treasurer
Attachments: Resolution 2011-
1
RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH, CALIFORNIA RELATING TO THE BUSINESS LICENSE TAX
PROCEDURES FOR SPECIAL EVENTS
WHEREAS, the City of Newport Beach desires to attract special events to the
City and incentivize organizers, vendors, exhibitors and service contractors to permitted
special events; and
WHEREAS, City Council has determined that the current Business License Tax
process for special events is cumbersome and may discourage special events in
Newport Beach; and
WHEREAS, City Council desires a streamlined Business License Tax process for
temporary permitted special events;
NOW, THERFORE, BE IT RESOLVED by the City Council of the City of Newport
Beach. as follows:
1. Effective July 1, 2011, a portion of the business license tax for individual
vendors, exhibitors and other services participating in City- permitted
special events is suspended or waived from payment such that the City
shall receive Twenty and 00/100 Dollars ($20.00) from each vendor,
exhibitor and service provider subject to an annual adjustment pursuant to
the Consumer Price Index.
2. The waiver hereby authorized shall automatically terminate upon repeal of
this resolution and the full amount of the apportioned business license tax
amount shall be imposed. The special event organizer shall provide the
Revenue Division with a roster of each vendor, exhibitor or other event
service provider involved in its special event to the City as part of its
Special Events Permit application.
3. The special event organizer shall collect the apportioned business license
tax of Twenty and 00/100 Dollars ($20.00) from each vendor, exhibitor, or
other event service provider and remit the payments to City prior to the
event.
4. No waiver shall be authorized if the special event organizer fails to provide
a roster, which shall be subject to verification by the Revenue Division
and /or fails to remit the payments to the City. In the absence of the waiver
authorized herein, each individual vendor, exhibitor or other event service
provider may be required to pay the full amount of the apportioned
business license tax rate, which is currently $56.50.
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Adopted this _t' day of April 2011.
Mayor
ATTEST:
City Clerk
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