Newport businesses impacted by shutdowns might see a reprieve from business license taxes

Businesses across Newport Beach might be able to waive their business license tax this April if the City Council approves a program to do so at its meeting this Tuesday night.

Up for the council’s consideration is a one-year waiver of the business license tax, an annual tax that is determined by the location of the business within the city and is adjusted every July to reflect inflation. The proposed waiver would be in effect for renewals processed between April and next March.

The waiver would apply to businesses affected by the state-mandated closures throughout the last year.

A staff report prepared for Tuesday’s meeting indicates there are just under 25,000 businesses throughout Newport Beach. About 1,850 businesses are expected to qualify for the waiver.

City staff said that, if approved, the city would automatically waive the tax for businesses that would fall under business classifications for state closures and provide an appeal process in the event some businesses are misclassified or were required to close even though they are not in a category identified by city staff.

Staff estimates the cost to the city would be a one-time loss of approximately $660,000 that would be off-set by budget surplus funds.

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