Manhattan Beach introduces code cleanup for business licenses, orders tax study for broader changes

The Manhattan Beach City Council on March 3 introduced an ordinance to update the city's business license regulations and voted to commission a tax study and public polling to inform potential ballot measures.

Finance director Libby Bretthour told the council the ordinance (No. 26-0005) implements 10 Phase 1 priorities aimed at administrative cleanup: clarifying mobile- and sidewalk-vendor rules, setting the license due date to April 30 to match practice, replacing language that incorrectly called the charge a "fee" with "tax," refining confidentiality and record-keeping rules, and allowing appeals to be heard by a hearing officer instead of the city council. "Our immediate goal tonight with the public hearing is to introduce ordinance number 26 dash 5," Bretthour said.

Emmy Rose Hanna, financial services manager, summarized Phase 2 as a set of 10 priorities that could change the tax structure and require voter approval. She said the city has budgeted consultant funding, including a tax study by HDL and polling, to model scenarios and measure community reaction. "The results of these efforts will be presented later in April or May of this year, and that will drive the ordinance and ballot language that's proposed in June," Hanna said.

Council members pressed staff on how exemptions and apportionment would work under possible Phase 2 reforms. Bretthour said the code already allows a city-manager exemption and the ordinance would further define the process. Special counsel noted that any general-tax ballot measure would require only a simple majority. "It's gonna be a simple majority," the counsel said in answer to a council question.

Council member Amy Howard moved to introduce the ordinance, describing the changes as overdue clarifications that address routine business confusion. The council voted 5-0 to introduce Ordinance 26-0005. Separately, after discussion about fairness and revenue impacts, council voted 4-1 to begin a tax study and polling to evaluate Phase 2 options; Council member Sherrillian voted no on the study motion.

What happens next: staff will return with the HDL tax analysis and poll results in April or May, host outreach meetings for residents and the business community, and present final draft ordinance and (if pursued) ballot language in June for potential inclusion on the November ballot.