Businesses in Anaheim may see some changes in the license fees they pay after the City Council agreed Tuesday to move ahead with a plan to review and revise the tax, which has not been changed since 1958.
A recently released report by consultants Ralph Andersen & Associates said the current business license tax has several weaknesses, including that:
The tax is regressive for certain types of businesses.
Businesses headquartered outside, but doing business in, the city pay less on the same amount of business.
Similar businesses are treated differently.
The consultants were hired after debate among council members last May on whether the city should review the tax. Mayor Don R. Roth and Councilman Ben Bay criticized the proposed study as a means to an end: to raise the business license fees.
Roth and Bay, who voted last year against spending $20,000 for the first phase of the study, voted Tuesday against paying for the second and third phases: $39 to $99 an hour to review the results of the study with staff members and $30,000 to prepare a proposal for revising the tax.