Administrative
Report
H.18., File # 24-1030 Meeting Date: 6/18/2024
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
APPROVE THE BUSINESS LICENSE TAX WAIVER APPLICATION SUBMITTED BY THE RIVIERA
VILLAGE ASSOCIATION EXEMPTING VENDORS PARTICIPATING IN THE RIVIERA VILLAGE
SUMMER FESTIVAL EVENT FROM COMPLIANCE WITH THE BUSINESS LICENSE TAX RATES ESTABLISHED IN REDONDO BEACH MUNICIPAL CODE SECTION 6-1.22, AS PER SECTION 6-
1.08 OF THE REDONDO BEACH MUNICIPAL CODE.
EXECUTIVE SUMMARY
The Riviera Village Association has applied to have the business license tax waived for vendors in the organization that will be participating in their annual Summer Festival event, which will be held at the Riviera Village on June 28-30, 2024.
BACKGROUND
All entities conducting business within the City of Redondo Beach are required to comply with Section 6-1 of the Redondo Beach Municipal Code (RBMC) which establishes the process and fees associated with obtaining a Business License in the City of Redondo Beach.
Section 6-1.08(c) of the RBMC includes a means for entities to appeal to the City Council for a waiver exempting parties from payment of the appropriate tax associated with the business type. In the case of the Riviera Village Summer Festival, vendors participating in the event would be subject to a projected tax of $99 each to procure the appropriate Business License. Currently, 26 vendors are named in the waiver application.
Section 6-1.08(c) states, “Upon a written application to the Council, a person or organization may request an exemption from the business license requirements imposed by this chapter, and the Council may waive the provisions of this chapter if the Council finds and determines that the community benefit will be promoted by granting such an exemption.” The attached Application for Waiver of Business License Tax submitted by the Riviera Village Association on June 5, 2024 requests a waiver for all businesses participating in the event that are current members of the Riviera Village Association and cites the community benefit the organization, and this event specifically, will provide.
The Riviera Village Summer Festival and the events that its fundraising supports - the annual Halloween and Holiday strolls - are considered City Signature Events. Each of the three events traditionally receive a $2,500 City subsidy to assist in covering related City costs, for a total of $7,500
H.18., File # 24-1030 Meeting Date: 6/18/2024
traditionally receive a $2,500 City subsidy to assist in covering related City costs, for a total of $7,500 in the FY 2023-24 Adopted Budget.
COORDINATION
This item was prepared in coordination with the City Manager’s Office.
FISCAL IMPACT
With each business license, the City collects business license tax (established in the City’s municipal code and varying by business type) and a $4 required state fee (for California Senate Bill 11861) of which the City retains 90% of the revenue. Applicable tax and fees for vendors participating in the Summer Festival Event are listed below.
Business License Tax SB 1186 Fee
Food Booth $ 129.00 $ 4.00
Mobile Food Vendor $ 214.00 $ 4.00
Retail Booth-Local $ 99.00 $ 4.00
Retail Booth-External $ 129.00 $ 4.00
Vendor Type City Revenue
The total fiscal impact will depend on the final number and type of vendors participating in the event.
With the information provided to date, including the potential for additional vendors, staff estimates the fee waiver value to be between $2,500 and $5,000.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Application -Waiver of Business License Tax Riviera Village Association, June 5, 2024 California Senate Bill 1186 requires cities to collect an additional $4 fee for a local business license. The additional $4 fee is for purposes of increasing disability access and compliance with construction-related accessibility requirements, and developing educational resources for businesses to facilitate compliance with federal and state disability laws. Cities may retain 90% of the collected revenue, which they must spend on the specified purpose.