Residents in 2 California Cities Vote to Increase Business License Fees

November 9, 2011

Residents of both Redwood City and Hermosa Beach City voted to increase local business license fees yesterday, Tuesday, November 8, 2011. Both increases come after months of effort on the part of council members to institute these increases.

Redwood, CA business licenses, which have not been increased since 1994, will be increased from $37 to $58, while the per-employee fee will increase by $15 to $39. MercuryNews.com reports that 55 percent of voters approved the increases to business license fees.

Residents also voted to change the Hermosa Beach, CA business license fee structure which hasn’t been changed in the past 23 years. Under the new business license fee scale, Daily Breeze reports, “businesses will continue to be taxed either a flat amount or based on a percentage of gross receipts, and new businesses will be exempt from paying the tax for their first year of operation.” The new business license fee structure is estimated to bring in approximately $200,000 additional revenue annually.

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