ANAHEIM : City Cracking Down on Illegal Businesses

A crackdown has begun on as many as 2,500 businesses that may be operating without a license and could be costing the financially strapped city thousands of dollars in lost revenue.

The city is tracking down the wayward businesses by cross-referencing its files with those of the State Board of Equalization, which collects state sales tax. The licensing fees could range from $22 to several hundred dollars, depending on the size and type of business, officials said.

William Sell, who heads the city’s business license division, said it is unclear exactly how many businesses are operating illegally or how much the city is owed. Some of the targeted firms may have gone out of business, he said, while other owners whose firms are in another city may be using their Anaheim home address on their state files.

Business owners who need to purchase a license will be sent a letter informing them that they have two weeks to apply for one at City Hall, officials said. Failure to respond to the letter will result in an investigation by the city’s code enforcement office and could result in a fine of up to $500 plus overdue fees, officials said.

“We received more than 100 calls” Tuesday in response to the letters, Sell said.

Lost revenue was not the only reason for the crackdown, Sell said, adding that it was unfair for those who pay their fees to allow unlicensed businesses to operate.

He said the city has not checked state files since 1986 because of staff cutbacks, but recent computerization of city records will now make such checks routine.