September 15, 2025
Honorable Mayor and Councilmembers:
It has not occurred to me or anyone that I have spoken with, including City staff until recently, that a landlord is required to get a business license for the privilege of renting or leasing property to someone else who will operate a business there. HdL Companies — who represent themselves as the Compliance Division of the City of Pismo Beach - now states that a landlord needs a business license to rent or lease property to someone else, and is attempting to collect fees including penalties retroactively for 2021, 2022, 2023 & 2024.
As the City Council reviews this section of the Municipal Code, here are some suggestions:
Option 1- The Council determines that in order to rent or lease property to someone else who will carry on business(es) there - landlords are not required to have a business license.
Option 2 — The Council determines that in order to rent or lease property to someone else who will carry on business(es) there, landlords are required to have a business license. The license fee is a flat fee based on
5.04.180 — Rental Unit operation (or as might be modified for commercial rentals).
A. Every person carrying on the business of keeping, operating or managing three or more rental units available for rental in the city shall pay an annual license fee as follows:
Units
Annual License Fee
�-- 6
$30.00
7--10
40.00 11--25
50.00 26--50
60.00 51 units or more
70.00 B. For the purpose of this section, a "rental unit" means a residential unit having facilities for permanent residential needs of the family within such residence unit. The number of units shall be based on the total number of units in all buildings operated by the licensee within the city; provided, however, that a unit actually occupied by the licensee or by his agent or employee as manager of the apartment house shall not be counted as a unit for purposes of this provision. (Prior code § 5.04.185)
Option 3 - The Council determines that in order to rent or lease property to someone else who will carry on business(es) there, landlords are required to have a business license.
The license tax is based on 5.04.070 - Gross Receipt fees:
Except as provided elsewhere in this chapter, every person who engages in business within the city shall pay an annual business tax based upon gross receipts in accordance with the fnllnwinn ccherli ila- Gross Receipt Bracket
Fee Amount
0-- 25,000
$20.00
25,001-- 50,000
30.00 50,001-- 75,000
40.00 75,001--100,000
50.00 100,001--125,000
60.00 125,001--150,000
65.00 150,001--175,000 _
70.00 175.001--200,000
75.00 200,001--225,000
80.00 225,001--250,000
85.00 250.001--275.000
90.00 275.001--300,000
95.00 300,001--750,000
$95.00 plus $10.00 per each $50,000 additional or
portion thereof over $300,001
750,001 and up
$230.00 plus $20.00 per each $50,000 additional or
portion thereof over 750,001
To be considered:
Excerpts from 5.04.010 Definitions:
"Gross receipts" means the total amount of the sale price of all sales --- Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature --- AND
the total amount charged or received from the performance of any act, service or employment of whatever nature it may be, for which a charge is made or credit allowed, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares or merchandise.
I read this to mean that if a landlord has to pay a tax based on gross receipts, he/she will have to pay the same tax as the business operator AND (meaning in addition to) a tax based on the total amount received for rental of the property.
It would not be possible for me to comply with this since I rent to businesses that pay rental fees but I have no way of knowing or finding out what their gross receipts are.
My suggestion: Add a sentence to the definition of "Gross receipts" such as:
Gross receipts for calculation of business licenses for landlords means: only the gross rental income that the landlord charges or receives from the property.
Finally, rewrite 5.04.140 Duty of police officers
as deemed appropriate and include the following:
change "are required to" to "are authorized to" and
change "shall have and exercise the power" to "shall have the power" and change "To make arrests for the violation of" - - - to " To make arrests for refusal to comply with --- Thank you for your consideration.
Henry Myers
[email protected]
WB
CITY OF PISMO BEACH Please Check One
New Application Li8839 N Cedar Ave #212 • Fresno, CA 93720 Change of Owner ❑Attn: Compliance Division • (805) 556-7049 Change of Address ❑ Change of Business Name ❑ BUSINESS LICENSE APPLICATION Home Occupation ❑
Business Name BUSINESS LICENSE NO.
Corporate Name EXPIRATION DATE
(if Different) SIC CODE
Business Location
(Not P.O. Box) PENALTIES
City State Zip LICENSE FEE S
Will you be using a Service of Process Address? Yes ❑ No ❑ (If yes, please provide the REGISTER DATE address in the AB2184 box below) CHECK NO. CREDIT CARD ❑ Bus. Home ( ) Bus Fax ( )
Mailing Address
(if Different)
City State Zip Email Address
Start Date Description of Business
Ownership ❑ Corporation ❑ Limited LiabilityCorp. ❑ Sole Proprietor ❑ Partnership ❑ Trust State Lic. No. License Type Expiration Date
Resale No. Federal ID No.
PERSONAL INFORMATION - Enter below names of Owners, Partners, or Corporate Officers - Use Additional Sheets as necessary Owner Name Title Phone ( )
Home Address Cell Phone
City State Zip
Owner Name Title Phone ( )
Home Address Cell Phone ( )
City State Zip
3152184 - Service of Process Address (If applicable)
Address City State Zip
Emergency Notification - In case of an emergency and I cannot be reached, please call:
Name Phone( )
Address Cell Phone ( )
City State Zip
PLEASE PROVIDE THE INFORMATION BELOW AND SIGN ENTER THE APPLICABLE INFORMATION BELOWFOR ALL YEARS DOING BUSINESS IN THE CITY OF • BEACH
I, the undersigned, do hereby declare the above information to be correct to the best of my knowledge. I understand that the Annual Gross Square No, of No. of classification(s) I have entered above are subject to verification by Receipts Footage Units Employees the City of Pismo Beach and that my business license fee may be adjusted to the actual figure when the year's business is completed.
Signature Date
Printed Name Title
NOTICE: Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California buliding owners and tenants with buildings open to the public. You may obtain Information about your legal obligations and how to comply with disability access laws at the following agencies:
2021
2022
2023
2024
Estimated
2025
The Division of the State Architect at www.des.camovldsa - The Department of Rehabilitation at www.dor.ca.gov - The California Commission on Disability Access at .esda.ea. ov. Thank you for doing business in the City of Pismo Beach! Printed 2/4/2025: 7:19 am