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CITY OF SAN BEARDINO - REQUESTOoR COUNCIL ACTION
From: councilman Ralph Hernandez
Subject: Business License Penal ties and
Delinquencies
Dept: Council Office
Dau: August 22, 1991
Synopsis of Previous Council action:
None
Racommended motion:
Discuss and take possible action regarding business license penalties
and delinquencies.
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Sign
Contact person:
Phil Arvizo
Phone:
5208
Supporting data attached:
No
Ward:
n/a
FUNDING REQUIREMENTS:
Amount:
Source:
Finance:
Council Notes: place on first meetinq in September.
Agenda Item No. 3 ~
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
CITY CLERK'S OFFICE
FROM:
September 3, 1991
Mayor and Common Council
Rachel Krasney, City Clerk
Agenda Item #32 - Regarding Business License Penalties
and Delinquencies
DATE:
TO:
RE:
COPIES:
Lee Gagnon, Business License Supervisor
---------------------------------------------------------------
The following information is provided as backup to Agenda Item
No. 32 concerning Council Member Hernandez' request to discuss
business license penalties and delinquencies.
On October 6, 1990, the Mayor and Common Council adopted
Ordinance No. MC-743. The ordinance imposed a 50% penalty for
failure to pay a license 0,11 or before the delinquency date and
imposes another 50% of the license fee after ~ days of
delinquency. Additionally, the ordinance established an
assessment of 10% of the amount of tax and penalties per month,
not to exceed 100%, to cover escalating costs incurred to pursue
delinquent accounts requiring extended enforcement action.
Prior to enactment of these changes, a 50% penalty was imposed
for failure to pay a license tax on or before the delinquency
date and an additional 50% after jQ days of delinquency. The
amendment merely reduced the amount of time from 90 to 60 days to
impose additional penalties of 50% thereby acting as a deterrent
to protracted delinquencies. So, the penal ties have always
remained the same; only the time frame was reduced.
The Enforcement Cost Recovery Assessment was instituted to cover
escalating costs incurred to pursue delinquent accounts which
required extended enforcement action beyond a sixty-day time
period.
These changes were part of a comprehensive package of business
license rate and language changes submitted by this office and
which were unanimously approved by the Ways and Means Committee
on September 10, 1990, and subsequently approved by the Mayor and
Common Council in October.
Attached is a summary showing the status of delinquent business
license accounts from January through July 1991.
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Mayor and Common Council
September 3, 1991
page 2
Lee Gagnon,
address any
before you.
I trust this information is helpful to you.
Business License Supervisor, will be present to
other questions which arise when this matter comes
[&:::~sn~
City Clerk
Attachment
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DELINQUENT BUSINESS LICENSES JANUARY THROUGH JULY 1991
PAID/NO PENALTY
PAID 50% PENALTY *
PAID 100% PENALTY *
PAID 10% ADDITIONAL ENFORCEMENT *
TOTAL DELINQUENT ACCOUNT! PAI~TO DATE.
...... ",', '".' ...1 '
384
178
71
47
680 .t
ACCOUNTS CLOSED
'REMAINING TO' BE :"'woRKih\
.. ~
485
"49Z'\
"
TOTAL NO. OF DELINQUENTS JAN-JULY 1991
1,657
296 ACCOUNTS HAVE PAID PENALTY SINCE JANUARY 1, 1991. THIS REPRESENTS
44% OF THE TOTAL ACCOUNTS PAID AFTER THE EXPIRATION DATE.
OF THE 296
60% PAID 50% PENALTY
24% PAID 100% PENALTY
16% PAID 10% ADDITIONAL ENFORCEMENT
* THESE FIGURES REPRESENT THE BEST ESTIMATES MADE BY THE FOUR
BUSINESS LICENSE INSPECTORS.