Item Coversheet
Item #6.

Staff Report 036-22

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

4/4/2022








SUBJECT


Extending the 2021-2022 refund process for business license surcharge fees for eligible businesses for 4/1/2022 – 12/31/2022
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 already been paid for that year.
  • From 4/1/2021 through 3/31/2022, Council authorized a business license surcharge fee refund process for eligible businesses in industries most severely impacted by COVID-19 pandemic.
  • If adopted, this ordinance would extend the business license surcharge fee refund process for one additional year from 4/1/2022 through 12/31/2022.

Strategic Plan Alignment
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 program. The revenue is dedicated to funding existing police officer positions and finding the increase level of street pavement management program. Pandemic-related restrictions on business activity in certain industries has continued over the past year and will likely continue for a number of months with adverse impacts to business viability in those industries.

 

The 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.

 

If passed, effective 4/1/2022, all businesses will be required to continue registration and payment of City business license fees through Washington State Department of Licensing.

 

From 4/1/2022, through 12/31/2022, businesses in several eligible categories will receive a refund from the City for 2022 fees and surcharges already paid. Eligible businesses will be required to complete a COV 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.

 

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)
  1. Support local businesses in most negatively impacted by the pandemic industries.

Disadvantage(s)
  1. Reduce revenues to the City of Vancouver.

Budget Impact

It is estimated that City revenues will have a one-time negative impact of approximately $500 thousand from implementation of this refund program.


Prior Council Review

Last workshop held March 8, 2021.


Action Requested

On Monday, April 4, 2022, subject to second reading and public hearing, approve the ordinance.

 

Natasha Ramras, Chief Financial Officer, 360-487-8484; Patrick Quinton, Economic Development Director, 360-487-7845

 


ATTACHMENTS:
Description
Ordinance