Anaheim Business Licenses May Go Up

Anaheim businesses are likely to pay higher license fees for the first time in 30 years, following the introduction Tuesday of a rate formula that appears acceptable to the city’s Chamber of Commerce.

The new rate plan, which would increase license revenues to $3.6 million from $1.5 million, was presented during the City Council meeting. Public discussion on the proposal to more than double fees was set for Aug. 16.

The Anaheim Chamber of Commerce, which has fought earlier proposals to increase fees, supports the new measure in concept, according to Allan R. Hughes, executive director. However, Hughes said the group still has questions about the structure and timing of the increase.

“No one likes to be taxed,” he said.

The new business rate plan would bring Anaheim’s fees in line with comparably sized cities such as Santa Ana, said City Treasurer Mary Turner. The license fees would average about $140.

According to a city staff report, Anaheim now collects an average of $59 per license for each of 25,700 businesses. That compares to $152 per license in Santa Ana. The average annual fee for cities with populations in the 100,000 to 250,000 range is $170, the report states. Anaheim has a population of about 240,000. If approved, the ordinance would go into effect Jan. 1, 1989.

In other action Tuesday, the City Council voted 5 to 0 to set a public hearing and final vote for Aug. 16 on a proposed hike in billboard fees.

Since 1965, outdoor-sign firms have paid a flat $100 annual fee to keep their billboards up, regardless of how many they own in the city. Last year the city collected $600. Under the proposed ordinance, which sets rates by sign size, the city would raise $24,300, city officials said.

The proposed increase is significantly less than a plan voted down earlier this year that would have increased total billboard fees to $255,000 annually. According to campaign statements, three council members and the mayor have received in total more than $22,000 in campaign contributions since 1986 from billboard firms.