LOS ALAMITOS : City OKs Cut in Some Business License Fees

In response to pleas from hairdressers, real estate agents and others, the City Council has tentatively agreed to slash business license fees for those who work as independent contractors.

Council members last week agreed to set up a new job classification for workers who contract their services to a variety of businesses. Those workers would be charged $42 a year for their business licenses, one-third the rate of the regular business license fee.

The contractors eligible for the cut-rate license fees would include hairstylists, real estate agents and certain teachers.

Some independent contractors have complained to the council that they should not be charged as much as business owners for their licenses. They argue that they typically earn considerably less than a business owner, so should pay accordingly for their annual licenses.

“In our evaluation of that issue, we felt it appropriate that these independent contractors should not pay the same amount as salaried employees” who pay license fees, City Manager Robert C. Dunek said. “Paying this rate will make the pay more realistic.”

The city’s loss of income would be “negligible,” Dunek said, and the city will conduct a study to determine how many independent contractors there are.

Upon adopting the reduced fee structure, city officials would step up their enforcement efforts to see that all independent contractors are licensed, he said. Consequently, the lost revenue probably will be offset by new income, he said.

The council on Jan. 27 will consider the fee change for final approval.