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Stanton refines business-license code after consultant finds low per-capita revenue
Summary
Council adopted clarifying updates to the city's business-license ordinance to separate tax and regulatory provisions, improve administration and audits, and streamline appeals. Staff said the changes do not change tax rates; a consultant noted Stanton's business-license revenue per capita is lower than nearby cities.
The Stanton City Council voted to adopt updates to the city's business-license ordinance on Feb. 11 after a presentation from the city's accounting manager and a consultant from HDL Companies.
Amy Massey, the city's accounting manager, summarized the work contracted to HDL, which included operational support and a comprehensive business-license review. Eric Myers, operations director for HDL, told the council the ordinance revisions are intended to clarify the code, separate tax receipts from regulatory licenses, strengthen audit and verification procedures, authorize the finance director to issue administrative rules, and streamline appeals to a two-tier system.
Myers said the study found Stanton's business-license tax revenue per resident is low: about $3.61 per capita compared with $14.93 per capita in nearby Buena Park. He explained that Stanton's longstanding employee-based tax structure (a base fee plus a per-employee charge) produces lower yields than gross-receipts approaches used elsewhere.
"So the essence of these changes that are being offered to the council at this time do not change any of those numbers," Myers said, stressing the current action is administrative and intended to improve clarity and enforceability.
Council members asked about which services are paid from business-license revenue; staff explained the tax is general-fund revenue that supports public safety, road maintenance and other city services, and that permit and inspection fees remain part of the separate user-fee schedule approved earlier. Staff also described proposed audit authority to verify self-reported business-license filings and clarified that changes to tax rates would require voter approval.
Council member Taylor moved adoption of the ordinance updates; Mayor Pro Tem Torres seconded. The motion passed 5-0.
What the changes do and do not do: the ordinance clarifies language around tax receipts and regulatory licenses, adds confidentiality provisions for business information, creates authority for administrative rules, standardizes delinquency calculations to calendar months, and establishes a clearer appeals path. Staff and the consultant noted potential future policy options (including considering different tax bases or ballot measures) but said those would come back separately and require voter approval where applicable.
