Finance Highlights 2006 1004 - Laserfiche WebLink

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In detail by rental type, business licenses issued to both single and multiple unit residential property rentals have increased in 2006. :MBIA's audit program began mailing targeting single family rentals in April 2006. The follow represents the increase in new BL T licenses issued and revenues collected in 2006 as compared to 2005: 2005 and 2006 Business License Tax Residential Property Rentals Rental Type Single Unit Multiple Unit Total 2005 Licenses Revenue Issued Collected 261 $14,915 676 103,075 937 $117,990 2006 Licenses Revenue Issued Collected 587 $141,795 768 114,000 1,355 $255,795 Change Licenses Revenue Issued Collected 326 $126,880 92 10,925 418 $137,805 Tax and Penalty Revenues When :MBIA discovers a non-compliant rental owner, a $100 (for full year) or $50 (for half year) penalty for each delinquent year is often assessed against the owner. The following table shows the distribution between taxes and fees versus penalties and adjustments in 2005 and 2006. Tax and penalty revenues collected in 2006 increased by $87k and $51k, respectively, over 2005. 2005 and 2006 Business License Tax Residential Property Rental Distribution Revenue Collected Taxes & Fees Penalties & Adjustments Total 2005 $95,678 22,312 $117,990 2006 $146,241 109,554 $255,795 Change $50,563 87,242 $137,805 Waivers Granted As of August 2006, staff has administratively waived over $17k in taxes and penalties after reviewing customers' requests for reductions. Full waivers of the BLT and related penalties were given to approximately five RPRP cases. Approximately eleven 50% penalty waivers were given to senior citizens. Remaining waivers were primarily for owners who could demonstrate a reasonable claim of ignorance to the ordinance or hardship (e.g., living outside of the San Leandro area or California). Current Practice in Handline: Penalty Waiver Requests In June 2004, the City launched a Business License Amnesty Program for three weeks to help businesses who were unsure or unaware of the City's business license requirements corne forward and receive their licenses without incurring administrative fines or penalties. The City ran advertisements in both the San Leandro Times and Daily Review and through other media. The press release specifically pointed out that owners of a single family rental were required to have a City business license.