Business License Tax Modernization Plan Priorities
Goals
# Description Simplify Clarify Modernize Fair and
Equitable
Fiscal
Sustainability
Actions that require City Council Approval via Ordinance 1 Clarify requirements for Mobile and
Sidewalk Vendors
✓
2 Clarify revocation process, appeal
process, or business license denial
✓
3 Clarify required documentation for
different business types (e.g. health
certificate, hair stylist certificate,
501C3 Letter, sellers permit, etc.)
✓
4 Clarify confidentiality requirements
in MBMC 6.01.230
✓
5 Clarify the Delinquent Process in
MBMC 6.01.250
✓
6 Clarify/Update business license “due
date” to April 30th (MBMC 6.01.070
states it is due on March 1st)
✓ ✓
7 Clarify/revise the City Manager’s
authority to exempt a business from
paying business license tax in
MBMC 6.01.280 G
✓
8 Clarify/revise the Chief of Police and
all Police Officers’ authority to make
arrests for violations of the business
license code (MBMC 6.01.260).
✓ ✓
9 Change any references of "Fee" to
"Tax" throughout code
✓
10 Update procedure relating to
recordkeeping of gross receipts /
IRS information for life of business
plus 5 years (Resolution No. 5002)
✓
Goals
# Description Simplify Clarify Modernize Fair and
Equitable
Fiscal
Sustainability
Actions that require Voter Approval
11 Update categories based on
business type instead of location
(e.g. eliminating Home Occupation,
PO Box, etc.)
✓ ✓
12 Consolidate Tax Types based on
Gross Receipts
✓ ✓
13 Clarify and expand Professional
Services (e.g. Real Estate) and
create new business types (e.g.
Waymo, WeWork, other new
industries)
✓ ✓ ✓
14 Clarify tax category for STR vs
Hotels (Gross receipts vs per room
tax)
✓ ✓
15 Consider a standard deduction for
business license tax
✓ ✓
16 Consider changes to Sales Tax
Credit (currently applies to
Commercial Property category only
per MBMC 6.01.310)
✓ ✓ ✓
17 Address apportionment by
eliminating the base tax and clarify
exemptions/deductions for revenues
generated out of state and/or in
other jurisdictions
✓ ✓ ✓
18 Clarify definition of employees to
include both on-site and remote
employees
✓
19 Update the current rate structure to
be comparable with neighboring
cities
✓ ✓
20 Raise or remove the cap to address
equity across business types
✓ ✓
No Action Required
21 Maintain Gross Receipts basis
✓
22 Continue CPI annual adjustments as
set by resolution
✓