A View From Harbor Street
By David Buckingham, Morro Bay City Manager
Amnesty from penalties for past-due Morro Bay business license taxes expires on March 13 — just over three short weeks away. That means an entity that has been conducting business in Morro Bay for the past four years without a business license has only three weeks to “get healthy” and save what could easily be over $500 in penalties.
Amnesty and Low-Cost Licenses
Morro Bay is in the early stages of a 3-year compliance audit of business licenses. Last October, the City Council enacted two ordinances to mitigate the initial effect of the audit.
One mitigation approved a limited-time suspension of the 100-percent penalty (after 10 months) Morro Bay charges for failure to pay business license taxes. The City has already refunded over $30,000 of penalties previously collected and has processed over 200 amnesty applications, saving delinquent taxpayers around $40,000.
After the amnesty period ends on March 13, businesses will be liable for all back taxes, plus penalties.
We strongly urge anyone who believes they may have conducted business in Morro Bay in the past four years — without a business license — to take advantage of this limited-time amnesty.
As a further benefit to those hardest hit, the other mitigation the City Council enacted reduced the cost of a business license for “low-revenue businesses.” Any business that demonstrates gross receipts of under $12,000 a year is eligible for a license that is about $100 less than the full-rate business license tax.
We are hopeful this will further encourage all entities conducting business in Morro Bay to come in and “get healthy.”
Who Needs a Business License?
The City and local business community are working together to refine our business license codes to be as clear and simple as possible and we expect the changes to be enacted this summer. In the meantime, who needs a business license in Morro Bay under our current code?
Like almost all other cities, any entity conducting business in Morro Bay requires a valid license — and “conducting business” is a very, very broad term. While most “brick and mortar” stores are aware they must have a business license, as do licensed contractors, here are a few categories of folks who may not be aware they require a full business license, and who should come in to City Hall ASAP to ensure they qualify for the amnesty:
• Real Estate Brokers and Agents. Any broker or agent, whether their office is in Morro Bay, SLO, Pismo or Fresno, who sells or offers for sale, or buys or offers to buy, any real estate in Morro Bay must have a current year business license at the time of the offer or transaction.
This includes leases and rentals and is consistent with every other city in SLO County.
• Independent Contractors. Any independent contractor, even if he or she works under the roof of an otherwise licensed business, requires a full business license.
This specifically applies to barbers, hair stylists, massage therapists, manicurists, tattoo artists, fitness instructors and teachers of classes. This requirement is also consistent with other cities in SLO County.
While this is one area that may be modified in the future, our current code requires all independent contractors to have a current business license and any unlicensed independent contractors should come to City Hall now to get a current license before the amnesty expires.
The City of Morro Bay is working hard to get this information out and to help all businesses understand and comply with our code. There is excellent, easy-to-read information at the Business License Update link under Hot Topics on the City website home page, see: www.morro-bay.ca.us.
And we encourage all entities that may have conducted business in Morro Bay in the past four years to read the two important documents at that link. Those documents, and individual service, are available at City Hall.
Please visit us at 595 Harbor St.; send an email to: ; or call Jamie Boucher at 772-6294.
David Buckingham is the Morro Bay city manager. A View from Harbor Street is a regular feature of The Bay News.
