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RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY
AUTHORIZING A TEMPORARY BUSINESS LICENSE TAX AMNESTY PROGRAM
WHICH INCLUDES SUSPENSION OF THE COLLECTION OF PENALTIES
ASSOCIATED WITH PAST DUE BUSINESS LICENSE TAXES
CITY OF FOSTER CITY
WHEREAS, the Foster City Municipal Code requires that any person who engages in a business in the City must obtain and maintain a valid business license; and WHEREAS, the voters of Foster City approved an amendment to the business license tax structure through Measure V in the November 2024 election; and WHEREAS, Measure V updated the existing business license tax rate of 0.075% of gross receipts to a progressive tax bracket structure, where higher tiers of gross receipts were taxed at higher rates (between 0.075% and 0.3%); and WHEREAS, the City’s business license tax administrator estimates there may be 2,500 businesses in Foster City that either do not pay or incorrectly pay the business license tax; and
WHEREAS, the City Council recognizes the need to increase compliance should be balanced against the impact to taxpayers who may not understand the new tax structure or be unaware of the tax requirements; and
WHEREAS, State law provides that a vote of the people is required to increase the business license tax, however, the City Council does have discretion to modify a tax rate or rules that would result in lower costs; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize a temporary Business License Tax Amnesty Program which includes temporary suspension of the penalties imposed on unpaid Business License Tax provided in Title 5, section 5.20.020 of the Municipal Code effective September 3, 2025 and ending on September 30, 2027, and further notes:
a) Penalties are waived for individual taxpayers only if the full balance is paid within 60 days of initial contact with the tax administrator; b) Businesses are still required to comply with all other provisions of the Municipal Code; and
c) The Council does not intend for the suspension of the collection penalties identified in this resolution to be or be interpreted to be a permanent reduction.
The Council retains the authority to reinstate collection of penalties at any time.
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PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 2nd day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
STACY JIMENEZ, MAYOR
ATTEST:
PRISCILLA SCHAUS, CITY CLERK