AMENDED 7/17/2026
Meeting Date: July 21, 2026
To: Economic Development Subcommittee
From: Zach Korach, Finance Director
Staff Contact: Tess Sangster, Economic Development Director [email protected], 760-607-2923
Subject: Subcommittee Member Request: Carlsbad Business License Process Recommended Action
Receive an informational report on the city’s business license process, discuss and provide recommendations.
Executive Summary
On April 28, 2026, Subcommittee Member Shin requested an informational report on the city’s business license process to be brought to the subcommittee for discussion and recommendations.
The City of Carlsbad's business license process serves as a key point of engagement between the city and the business community. All businesses operating within Carlsbad are required to obtain and maintain a valid business license, providing the city with important information on business activity and trends. Staff provide an annual update to the Economic Development Subcommittee on business license activity, including application volumes, processing metrics, industry trends, and ongoing efforts to improve the customer experience for businesses navigating the licensing process.
Explanation and Analysis
The City of Carlsbad's business license process is administered by the Finance Department and serves as an essential component of the city's business-friendly environment. The program supports new business formation and business expansion.
As part of the city's commitment to continuous improvement, staff monitor and evaluate business license activity throughout the year and provide an annual update on key metrics and trends. These updates may include the number of active business licenses, new business license applications, industry sector growth, processing timelines, and initiatives designed to streamline the licensing process and enhance customer service.
The quarterly Economic Scan report also provides valuable insight into Carlsbad's business landscape, helping city leaders understand emerging economic trends and identify opportunities to support business retention, attraction, and expansion efforts. Information gathered through the business license program complements broader economic development activities and contributes to informed decision-making regarding business services and policies.
ECONOMIC DEVELOPMENT SUBCOMMITTEE
July 21, 2026 Item #1 Page 1 of 2
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: . ~ Staff Report ..
At the Economic Development Subcommittee meeting on April 28, 2026, staff were requested to provide information on possible efficiencies around the business license application process, particularly applications that are submitted online versus physically (either in-person or via mail).
New business license applications or subsequent renewals may be submitted to the Finance Department either online or physically. For fiscal year 2025-26, 1,807 new business license applications were submitted, of which 1,468 were submitted online and 339 were submitted manually, representing an 81%/19% split. During the same period, 8,762 business license renewal applications were submitted. Of those, 4,396 were submitted manually and 4,366 were submitted online, representing an approximate 50%/50% split. The amount of staff time associated with processing business license applications is nearly the same whether it is submitted online or physically. The benefit with submitting online is the ability to prescreen certain required fields which increases the level of completeness and accuracy of the application. Instances where an application is received physically may result in additional staff time obtaining the necessary information from the applicant for processing.
Fiscal Analysis
This action has no financial impact.
Next Steps
Staff will continue to administer the business license program, monitor business activity trends, and identify opportunities to improve the customer experience. An annual business license update will be provided to the Economic Development Subcommittee to support ongoing discussions related to economic development, business engagement, and service delivery.
Exhibits
None.
July 21, 2026 Item #1 Page 2 of 2
BUSINESS LICENSE PROCESS
Recommendation:Receive an informational report and provide feedback on the City of Carlsbad’s business license process and discuss opportunities to support businesses through efficient licensing, compliance assistance, and customer service
improvements.
E C O N O M I C D E V E L O P M E N T
{city of
Carlsbad
BUSINESS LICENSE PROCESS
•Business license process administered by Finance Department •Governed by Carlsbad Municipal Code: Title 5 Business
Licenses and Regulations
•Supports new business formation and expansion
•Quarterly reporting through Economic Scan and Financial Update
E C O N O M I C D E V E L O P M E N T
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{city of
Carlsbad
BUSINESS LICENSE PROCESS
10,569 business licenses issued in fiscal year 2025-26
•5,834 submitted online (55%)
•4,735 submitted physically (45%)
Additional staff time may be required for incomplete/inaccurate applications sent physically.
E C O N O M I C D E V E L O P M E N T
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{city of
Carlsbad
BUSINESS LICENSE PROCESS
•Carlsbad Municipal Code (§5.08.010 Based on gross receipts) governs “gross receipts”
•New business without prior gross receipts pay license tax based on estimate
•Subsequent renewal payments address potential over/under payments from initial estimate
•Subsequent renewal payments are based on the previous
year’s gross receipts amount
E C O N O M I C D E V E L O P M E N T
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{city of
Carlsbad