In a recent Sacramento County government meeting, officials discussed significant amendments to the business license fee structure, marking the first update since 2019. Finance Director Chad Rindy presented a proposal aimed at adjusting fees to reflect rising operational costs, particularly in the wake of inflation exacerbated by the COVID-19 pandemic. The proposed changes include a 29% increase in general business license fees, with some categories, such as massage establishments, seeing increases as high as 268%.

Rindy emphasized that the fee adjustments are designed for cost recovery rather than profit generation, clarifying that the county does not impose a business license tax like some other jurisdictions. The proposed fees are set to take effect on October 1, 2024, pending board approval, which would require a 30-day notice period.

The meeting also highlighted the increased enforcement efforts associated with certain licenses, particularly in the massage industry, where compliance activities have intensified due to concerns over illicit operations and human trafficking. The sheriff's office reported spending over $100,000 on undercover operations in the past six months, revealing that 65% of inspected establishments engaged in illicit activities.

While the board expressed support for the fee increases to maintain service levels, concerns were raised about the disproportionate impact on legitimate businesses. Janice Foster Downs, representing the Sacramento Asian Pacific Chamber of Commerce, voiced opposition to the drastic fee hikes, arguing that they unfairly penalize compliant businesses still recovering from pandemic-related challenges.

The board is expected to deliberate further on the proposed fee structure, weighing the need for adequate funding against the potential burden on local businesses.