Richmond wants to cut business owners a break to beef up city coffers.
The city's Finance Department sent letters to 2,500 business owners and another 6,000 property owners offering to waive sizable late fees for businesses that acquire proper licenses. The late-fee amnesty runs through Dec. 31, said Antonio Banuelos, the city's revenue manager.
The City Council approved the amnesty nearly two months ago, but since official notification of the program went out just last week, Banuelos said his department has yet to receive any delinquent payments — just a lot of phone calls.
Banuelos estimated the city could raise about $300,000 in revenue through the program, which could help with the bottom line. Richmond collected 12 percent less in taxes during the fiscal quarter that ended in June compared with a year ago, according to MuniServices, the city's sales-tax consultant. Statewide, tax collectors took in almost 25 percent less money than in 2008.
"It's a chance to clean up our database, and also to get rid of businesses that aren't in business anymore," Banuelos said. "And, obviously, we like the revenue it brings in."
The city generated $2.3 million in fees from business licenses during the last fiscal year. That's down from the $3.5 million per year the fees drew in the past, Banuelos said. License fees were reduced slightly this year, and changes to the payment date resulted in several prorated bills, accounting for the
In addition to businesses, property owners in Richmond who rent out their buildings are required to acquire a business license. A typical license for a rental costs $324 per year. The city has identified 6,000 such landlords who need to pay up, Banuelos said.
Richmond has issued about 6,000 total business licenses, Banuelos said, meaning that should everyone with delinquent fees pay up, the city's business database effectively would double.
Cesar Segura has owned Taqueria La Selva on South 23rd Street with his brother and two sisters for close to 12 years. The eatery is up to date with its license, and he called the fees just part of running a business.
"Most of the permits are easy to get," he said.
Richmond Chamber of Commerce President Judy Morgan has asked for a list of businesses that haven't paid their license fees. The chamber, she said, would like to set up a task force to encourage those businesses to acquire the proper licenses.
"It is illegal to not have a business license, and most businesses follow the letter of the law," Morgan said. "But for a small, family-owned business, they spent $300 to $500 for a license, and nobody ever comes to see if they actually have it, so those are tough choices for a small business."
Ian Stewart is a correspondent for Richmond Confidential, a community journalism project of the UC Berkeley Graduate School of Journalism in cooperation with the West County Times. On the Web at www.richmondconfidential.org.



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