HomeMy WebLinkAbout8676RESOLUTION NO. 8676
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS ESTABLISHING A BUSINESS LICENSE AMNESTY AND
COMPLIANCE PROGRAM
WHEREAS, the City of Redlands requires all businesses operating within the city,
including rental property owners, independent contractors, and home -based businesses, to
obtain a business license and pay the associated business license tax; and
WHEREAS, an audit conducted by Hinderliter De Llamas & Associates (HDL) has
potentially identified hundreds of businesses operating in the City of Redlands without a valid
business license; and
WHEREAS, the City recognizes that some businesses may be unaware of the business
license requirements and seeks to support them through an educational campaign designed to
provide guidance and assistance in the licensing process; and
WHEREAS, the City has inherent authority to determine how to enforce its
ordinances, including its business license ordinance, as long as such enforcement is
accordance with laws such as equal protection and conflict -of -interest requirements (Cal.
Const., art. XI, § 7); and
WHEREAS, HDL projects that the proposed Amnesty and Compliance Program could
generate an estimated $725,000 in additional revenue, which equates to 12% of the City's
current business license revenue; and
WHEREAS, the Amnesty and Compliance Program aims to create a more business -
friendly environment, educating and encouraging business retention and new business
development, and enhance the City's long-term economic growth; and
WHEREAS, eligibility to benefit from the program is based on neutral criteria that
comply with all relevant equal protection and conflict -of -interest requirements; and
WHEREAS, the program includes an educational campaign, expanded outreach efforts,
and enhanced online services to facilitate compliance and streamline the business licensing
process; and
WHEREAS, the City Council finds that limiting business license tax liability under
the Amnesty and Compliance Program to the current year and up to two prior years, rather
than three, strikes a fair balance between encouraging participation, recovering outstanding
tax revenue, and reducing the financial burden on businesses.
1
IAResolutions\Res 8600-8699\8676_Business_License_Amnesty_Compliance_Pwgium.docx-jm2
NOW, THEREFORE, BEIT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF REDLANDS AS FOLLOWS:
Section 1. The City Council hereby adopts the City of Redlands Business License Amnesty
Program attached hereto and incorporated by reference herein as Exhibit "A".
ADOPTED, SIGNED AND APPROVED this 15th day of April, 2025,
ATTEST:
J66c Donaldson, City Clerk
2
Mario Saucedo, Mayor
IAResolutions\Res 8600-869918676_Business_License_Amnesty_Compliance_Progmm.docx jm2
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing
resolution was duly adopted by the City Council at a regular meeting thereof held on the 15th
day of April 2025, by the following vote:
AYES: Councilmembers Barich, Tejeda, Davis, Shaw; Mayor Saucedo
NOES:
ABSTAIN:
ABSENT:
— C)49—
Jea Donaldson, City Clerk
3
L• Resolutionsaes 8600-869918676_Business_License_Amnesty—Compliance _ Program.docx-jm2
EXHIBIT A
City of Redlands Business License Amnesty Program
Program Overview:
The City of Redlands will implement a 6-Month Business License Amnesty Program to promote
business license compliance by waiving penalties for eligible businesses. This one-time program
offers businesses the opportunity to renew outstanding licenses or obtain a business license for
the first time without incurring penalty fees.
Amnesty Program Period:
The Amnesty Program will run for six months, from May 1, 2025, to October 31, 2025.
Eligibility and Program Details:
Penalty Waiver: Businesses may renew an outstanding business license or obtain a first-
time business license without paying any penalty fees.
Business License Fees: Businesses are still responsible for paying all current business
license fees and business license taxes. Only penalty fees will be waived.
Payment of Past Fees: New or delinquent businesses with outstanding business license
tax fees must pay the business license tax for the current year and up to the prior two
years, depending on the business start date.
• Departmental Review: As part of the Amnesty Program, unregistered businesses that
require departmental review, permits, or inspections will have up to six (6) months from
the date their initial application is received to complete the business license process, and
any requirements pertaining to building permits and/or inspections, in order to qualify for
a penalty waiver.
Requirements:
Full Disclosure: Businesses must fully disclose their operations during the amnesty
period.
Ongoing Compliance: Participants must adhere to city regulations and maintain a valid
license beyond the amnesty period.
How to Apply:
To participate in the 6-Month Business License Amnesty Program:
• New or Unlicensed Business: Complete online or mail in the business license application
I:\Resolutions\Res 8600-8699\8676_Business_License_Amnesty_Compliance_Pmgmm.docx jm2
Renewals: Contact HDL at (909) 479-2111 to obtain your renewal notice.
• Submit payment using one of the available payment options with the specified Amnesty
Program period.
For assistance, contact the Revenue Division at (909) 798-7557 or HDL at (909) 479-2111.
Additional Terms and Conditions:
• Amnesty Period is Final: This program is a one-time opportunity. Businesses must act
within the 6-month period. After November 1, 2025, standard penalty fees will apply to
any outstanding licenses as defined in Redlands Municipal Code.
• No Refunds or Credits: The amnesty program is only available to businesses with unpaid
fees and/or penalties. No refunds or credits will be issued for penalty amounts paid prior
to the Amnesty Program period.
Exclusions: Zoning violations and other types of code violations are not waived in
conjunction with the Business Tax Amnesty Program.
• Businesses must adhere to all city regulations and maintain a valid business license
beyond the amnesty program period.
The City of Redlands is committed to supporting local businesses and ensuring a fair and
equitable business environment. We encourage all unlicensed businesses to take advantage of
this amnesty opportunity.
5
[.Resolution\Res 8600-8699\8676 Business_Licenso_Ainnesty Compliance Pwgram.doex-jm2