Title
Staff Report for Resolution Extending the Business License Tax Holiday Through December 31, 2014
Staffreport
SUMMARY AND RECOMMENDATIONS
This report provides an update on the results to date of the Business License Tax Holiday, which was initiated on September 1, 2013. Staff recommends that the City Council adopt the attached resolution extending the Business License Tax Holiday through December 31, 2014. This change will mean that all qualifying new businesses in San Leandro will not pay any business license tax until January 1, 2015.
BACKGROUND
Beginning September 1, 2013, the City of San Leandro instituted a Business License Tax Holiday, waiving business license fees for new businesses through August 2014. By resolution, the Business License Tax Holiday expires August 31, 2014.
Businesses that are new to San Leandro, including start-ups and businesses re-locating from other areas, are presently exempt from paying the tax for the 2014 calendar year. The City has also waived a zoning conformance review fee of $107 for new businesses. The Business License Tax Holiday excludes out-of-City contractors, businesses not physically located in San Leandro, residential and commercial property owners who are renting their property, amusement devices, and waste disposal sites.
The intent of the program was to capitalize on the improving economy as well as major economic drivers such as the Kaiser Permanente San Leandro Medical Center and Lit San Leandro to ensure that the City did everything possible to attract new businesses.
Absent action by the City Council, the Business License Tax Holiday is set to expire on August 31, 2014.
Initial Outreach and Media Coverage
A primary benefit of the Business License Tax Holiday is the message it sends regarding San Leandro's willingness to support new businesses. Combined with a robust program of business incentives, the One Stop Permit Center, and a business-friendly attitude by staff, the Tax Hol...
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