At the April 26, 2022, City Council Meeting, Council Member George Brietigam proposed implementing a 5% business license tax rebate program to incentivize alternative work schedules (e.g., 10/40 or 9/80 work shifts) for commercial businesses in the City with ten or more employees.  Some of the potential benefits cited by Council Member Brietigam were: reduced traffic, reduced air pollution, reduced fossil fuel consumption, enhanced quality of life for employees, and reduced business license taxes for commercial businesses.  At the meeting, the City Council approved an action item for staff to gather basic cost information to support further discussion and consideration at the May 10, 2022, City Council meeting. 

The Finance Department has provided the following information, based on current documentation:

• Of the City’s 5,200 brick and mortar commercial businesses, approximately 700 have 10 or more employees and could qualify for the program.
• If all 700 businesses participated, the potential cost in lost revenue in Business License Tax could be up to $89,000 per year.
• The maximum business license tax rebate would be $127.50, per business per year.
• A list of example businesses and rebate amounts is attached for reference.
• Implementation would require the City Council to adopt a Resolution outlining the program criteria, and the City’s business tax renewal form would be modified accordingly.
• Modification of the business tax renewal form and fee calculation would be relatively straight forward, yet enforcement/compliance verification would not be feasible.

It is recommended that the City Council:

• Provide direction to staff regarding implementation of the proposed 5% business license tax rebate program.