Item Coversheet
Item #10.

Staff Report 046-21

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

4/5/2021








SUBJECT


Creating a refund process for business license surcharge fees for eligible businesses for 4/1/2021 – 3/31/2022
Key Points
  • Effective 4/1/2020 through 3/31/2021, Council authorized business license and surcharge fee suspension for all businesses due to the public health threat posed by the sudden outbreak of the novel coronavirus (COVID-19). The City worked with its partner at the Washington State Department of Revenue Business Licensing Service (BLS) to suspend fees during the eligible time period and to refund those that had already been paid for that year.
  • Pandemic-related restrictions on business activity in certain industries continue and will likely continue for a number of months to negatively impact business viability in those industries.
  • City desires to financially support businesses that have traditionally served large numbers of consumers indoors, simultaneously. These businesses are among those most severely impacted by the pandemic, are likely to remain subject to some of the longest restrictions, and are particularly well-situated to utilize the business license surcharge savings to support increased consumer safety.

Strategic Plan Alignment

 

Goal 9: Build the strongest, most resilient economy in the region.


Present Situation

The City generates approximately $5.5 million annually from the business license fee and surcharge (BLS) program. The revenue is dedicated to funding existing police officer positions and funding the increased level of street pavement management program.

Effective 4/1/2021, all businesses will be required to continue registration and payment of City business license fees through Washington State Department of Licensing.

From 4/1/2021 through 3/31/2022, businesses in several eligible categories will receive a refund from the City for 2021 fees and surcharges already paid. Eligible businesses will be required to complete a City of Vancouver BLS Refund application form to receive the refund. The State of Washington’s application processing system has limited flexibility and cannot accommodate significant deviations from the current program. Refund applications will, therefore, be processed manually by the City of Vancouver Business License division in the Finance department.

The eligibility for this program targets businesses that have traditionally served large numbers of consumers indoors, simultaneously. Specifically:

  • Restaurants, Taverns, Breweries, Wineries and Distilleries;
  • Fitness and Training Facilities;
  • Movie Theatres, Theaters & Performing Arts; and
  • Bowling Facilities.

Specific Washington State Guidance documents that identify which businesses are included in the above categories are identified in attachments A-E to the attached Ordinance.

 

These businesses are among those most severely impacted by the pandemic, are likely to remain subject to some of the longest restrictions and are particularly well-situated to utilize BLS savings to support increased consumer safety.


Advantage(s)

Supports local businesses in most negatively impacted by the pandemic industries.


Disadvantage(s)

Reduces revenues to the City of Vancouver.


Budget Impact

It is estimated that City revenues will have a one-time negative impact of approximately $500,000 from implementation of this refund program. This reduction in revenues is expected to be offset by restricted spending, revenues in excess of estimates for the biennium, and local government relief provided through the American Rescue Plan Act of 2021.


Prior Council Review
Workshop on March 8, 2021.
Action Requested

On Monday, April 5, 2021, subject to second reading and public hearing, approve the ordinance.

 

Natasha Ramras, Chief Financial Officer, 360-487-8484

 


ATTACHMENTS:
Description
Ordinance