Exemption for small businesses denied

An attempt by Huntington Beach City Councilman Don Hansen to establish a city business license exemption for businesses making less than $1,000 in annual gross receipts was quashed, 4 to 3, at Monday night’s council meeting.

Hansen came up with the plan after speaking with a citizen who filed a 1099 independent contractor tax form when he earned $800 in ancillary income.

Through a new auditing program, the man was then sent a letter from the city demanding that he pay $75 for a business license, Hansen said. The man appealed the city, and finally was told he did not have to pay the fee.

Hansen argued that this man and others are asked to pay nearly 10% of their income to the city, in what he believed was an unfair practice. He sought to make Huntington Beach more of a small-business-friendly city with the move.

Councilman Joe Carchio said that such a fee was part of the cost of doing business, regardless of total income earned, but that he would support the tax exemption if it was specifically created for 1099 filers, whom he did not see as being traditional business owners.

In other news:

?The council voted to extend the Huntington Harbour Yacht Club’s lease for another 30 years, after a short discussion.

The rent for the facility is now $22,680 annually, about double the previous lease, and the club has been asked to make improvements to the facility.

?City department heads, including the police, fire and marine safety divisions, submitted their “wish lists” for future facility needs at a study session prior to the meeting.

?The council approved a $170,000 appropriation for the purchase and installation of traffic control bollards for downtown events like Surf City Nights.

?The city’s own Relay for Life team, HB United, was honored for raising more funds than any other team at the Huntington Beach Relay for Life in June.

?The city was honored by Dog Fancy Magazine’s editor, Susan Chaney, for its selection as one of the most “dog friendly cities” in the nation; a check for $2,000 was presented to the Friends of the Dog Beach.

?The council held a moment of silence in memory of Allyssa Squirrell, the Junior Lifeguard who died last week following a training accident.