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AGENDA REPORT
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| | | | | | | | DATE:
| January 19, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-04 of the City Council of the City of Fairfield Authorizing the City Manager to Extend the Penalty Period for Annual Business License Taxes |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | Due to the local emergency of COVID-19, City Hall closed to the public on Monday, November 23, 2020. Staff asks the City Council grant the City Manager, as Director of Emergency Services, the ability to extend the penalty period for businesses to pay their Annual Business License Tax. In addition to the temporary closure of City Hall, the economic impact from the pandemic has caused financial hardship for local businesses. |
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| | | | | | | | | DISCUSSION | City of Fairfield requires businesses to pay their Annual Business License Renewal Tax each year. Section 10.B.23(a) of the Fairfield Municipal Code states that the deadline to submit the tax without accruing a penalty is January 31. The City generally begins receiving these payments in November.
On November 23, 2020, City Hall closed to the public due to COVID-19. This impacts the ability for businesses to pay the tax in-person. Staff recommends extending the penalty period to grant Fairfield businesses more time and opportunity to submit payment. The Resolution authorizes the City Manager to extend the deadline as necessary. Currently, staff recommends extending the penalty period to thirty (30) days after City Hall reopens to the public.
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| | | | | | | | | FINANCIAL IMPACT | | Out of five thousand five hundred and one (5,501) registered businesses in Fairfield in 2020, there are four thousand three hundred and thirty-two (4,332), that have not submitted payment for their Annual Business License Tax for 2021. The total of the Standard Tax Payments for these businesses to the City is $1,175,932.13, payment of which may be delayed. The median amount per business for unsubmitted payments is $84.00. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | There was no contact with the public on this issue.
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| | | | | | | | | ALTERNATIVE ACTION | | City Council may choose to not pass the resolution and maintain the penalty period deadline of January 31. Or, City Council may extend the penalty period for a longer period of time. |
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| | | | | | | | | STAFF CONTACT | Jonathan Luong, Management Analyst
(707) 428-7463
jluong@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, City Manager's Office, Community Development Department
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| REVIEWERS: | | Reviewer | Action | Date | | Gassaway, David | Approved | 1/4/2021 - 8:13 PM | | Alexander, Amber | Approved | 1/5/2021 - 1:05 PM | | Alexander, Amber | Approved | 1/6/2021 - 4:58 PM |
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