NEWPORT BEACH : Business License Fees Hiked to Ease Crunch
Trying to plug a $6-million gap in next year’s budget, the City Council has moved to increase business license fees.
And in another action last week, the council unanimously approved a plan to put fences on West Newport’s Seashore Drive in hopes of corralling the traditional street party on the Fourth of July holiday.
The business license fee increase is expected to pour $1 million annually into an ailing budget that would still require elimination of about 50 jobs through layoffs, retirement or consolidation for fiscal year 1992-93.
The increase was passed by a 6-1 vote. Councilman John W. Hedges, the lone dissenter, contended that the tax increase would do nothing to help local businesses that have suffered through the recession.
About 16,000 businesses pay the city tax, which can either be a flat $75, or a percentage of gross annual receipts with a minimum payment of $45.
Under the new schedule, businesses headquartered out of town will pay $150; residentially based businesses will pay $95; commercially based businesses $100, plus $5 per employee up to $500.
Also, chain-link fences will be built across Seashore Drive between 33rd and 55th streets in West Newport to restrict the area that in the past attracted thousands of revelers roaming the streets in search of Fourth of July parties.
Officials will also close a city-owned parking lot in the area and ban curbside parking for the day to discourage people from looking for parties.
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