Politics & Government
Council Asked to Hike Business License Taxes 14%
El Cerrito city staff is recommending that the City Council on May 7 approve an average 14 percent hike in business license taxes as part of the city's annual fee adjustments. Most city fees would rise by 3 percent under the staff proposal.
Business license taxes in El Cerrito would jump an average 14 percent under the new fee schedule proposed by city staff for the City Council meeting on May 7.
The proposed boost is part of the annual fee adjustments proposed by staff for city fees. Most city fees for fiscal 2013-14 would rise 3 percent, according to the staff report from the city's Economic Development Manager, Lori Trevino.
A business with four employees, for example, would see its business license tax rise to $498 from $437 this year.
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The reason for the extra large boost for business license taxes is that the city apparently did not correctly apply the formula for the tax prescribed in the Municipal Code and thus undercharged businesses in past years, according to Trevino's report.
"It appears that in the last several years, the adjustment for business license taxes was applied incorrectly which resulted in reduced tax rates," she says.
Find out what's happening in El Cerritowith free, real-time updates from Patch.
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