Business Licenses and Permits:: Published by Corporation Service Company » Blog Archive » Business licenses too costly for small firms in Calif. city?

Council members in Burlingame, California, are set to discuss whether or not annual business license fees are too costly for small firms with just a few employees.

Currently, every business in the city must pay $100 a year, but the City Council will consider increasing the fee for larger businesses.

“To me that is just a no brainer that they should be paying more than $100,” mayor Terry Nagel said, as reported by the Burlingame Patch.

The tax has not been changed since 1975 and the council could place the changes on the ballot in November this year.

Another justification for the tax increase is the city’s desire to pump more investment into Burlingame’s infrastructure, including $9 million worth of improvements to aging water and sewer works.

According to city manager Jim Nantell, annual business licenses generate around $800,000 a year, which could be doubled if large businesses were to pay more.

However, councilman Jerry Deal told the news provider that the move will be unpopular with residents as “all they are going to see is tax.”