This item was referred to the Neighborhoods and Quality of Life Committee (NQLC) at the April 21, 2021 City Commission meeting by Commissioner Samuelian. The purpose of the referral is to discuss the business tax receipt (BTR) criteria and proposed modifications sent by residents, including:

(1) Authorize a review of police calls for service history and code enforcement history for any business seeking BTR renewal and require such review for certain specific types such as dance halls, liquor stores, restaurants, convenience stores, and alcohol beverage establishments, in an effort to identify patterns in calls for police service and/or code enforcement that may point to possible public safety concerns associated with the business seeking BTR renewal.

(2) When such patterns stated in paragraph 1 are identified, require the City Manager to further vet the business seeking BTR renewal. Such vetting may include a review of business practices and a site visit during hours of operation but must at a minimum include consultation with the Director of Code Enforcement and the Chief of Police prior to the renewal of the BTR.

(3) Upon such further vetting stated in paragraph 2, allow the City Manager to: (a) deny the issuance of a BTR or (b) issue conditions that must be met for the renewal of the BTR.

Over the last few months, several meetings have taken place with a working group that included staff from the City Attorney’s Office, Code Compliance Department, Police Department, and Finance Department.

The working group reviewed the various sections of the City Code pertaining to BTR’s including: application procedures (Section 102-371); grounds for denial (Section 102-372); grounds for suspension, revocation, and denial (Section 102-381); notice of violation, emergency action (Section 102-383); hearing procedures, enforcement of orders (Section 102-385).

After close review of the applicable City Code sections (see attachment), the working group felt that there is existing language in the current City Code that can be adequately used to address problematic operators.

As shown below, Section 102-381 - Grounds for suspension, revocation, and denial, includes language in provisions (a2), (a4), (a5), and (a6) that provide the Administration and the City Attorney’s Office with the ability to regulate problematic businesses.

(a) The city manager or his or her designee shall either revoke or temporarily suspend the business tax receipt of any person where it is determined by the city manager or his or her designee that:

(1) The taxee has misrepresented or failed to disclose material information required by this article to be included in the business tax application form.

(2) The taxee, as part of the taxee's business activity within the city, is engaged in conduct that is an actual threat to the public health, welfare or safety.

(3) The taxee is conducting business from premises that do not possess a valid and current certificate of occupancy and/or certificate of use as may be required by city and county laws.

(4) Habitual conduct has occurred at the taxee's premises that violates city, county or state law.

(5) The tax receipt issued by the city depended upon the taxee's compliance with specific provisions of federal, state, city or county law and the taxee has violated such specific provisions of law.

(6) The taxee has violated any provision of this article and has failed or refused to cease or correct the violation after notification thereof.

(7) The taxee, as part of the licensee's business activity within the city, knowingly lets, leases or gives space for unlawful gambling purposes at the taxee's premises.

(8) The taxee, within the preceding five years in this state or any other state or in the United States, has been adjudicated guilty of or forfeited a bond when charged with soliciting for prostitution, pandering, letting premises for prostitution, keeping a disorderly place, or illegally dealing in narcotics. 

(9) The premises have been condemned by the local health authority for failure to meet sanitation standards or the premises have been condemned by the local authority because the premises are unsafe or unfit for human occupancy.

(10) The taxee's premises have been found to constitute a public nuisance by the nuisance abatement board.

(11) A business has permitted an untaxed promoter to hold a dance or entertainment event on the premises of the business on more than one occasion within a 12-month period.

(b) The suspension or revocation shall be of the business tax receipt in effect at the date of such suspension or revocation, even though it may have been issued to a taxee other than the person who held the tax receipt at the time the cause for such suspension or revocation arose.

(c) No tax receipt shall be suspended under this section for a period of more than 12 months. No new tax receipt shall be issued during the period of suspension/revocation to the taxee, or to any other firm in which the taxee or any of its general partners, limited partners, officers or stockholders owning 20 percent or more of its stock or agents, employees or other persons who were actively involved in the business under suspension/revocation. At the end of such period of suspension or revocation, the taxee and/or agents, general or limited partners, officers or stockholders may apply for a new tax receipt.

(d) The city manager shall deny a business tax receipt to any person as provided by sections 102-371 and 102-372.

Similar language is included in Section 102-372 Grounds for denial of a BTR that can be used to deny renewal of an existing BTR.

In order to successfully apply the existing provisions in the City Code, the City Manager has directed convening of monthly meetings with representatives from the City Attorney’s Office, Code Compliance Department, Police Department, and Finance Department. These meetings will help these departments collaborate in a more proactive approach, to exchange information regarding problematic operators so that suitable evidence can be collected to effectively enforce the applicable provisions of the City Code.