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Home Occupation Permit Fee Resolution <br />December 20, 2022 <br />Page 2 <br />3 <br />1 <br />3 <br />2 <br />process for applicants will bring the fee into better alignment with surrounding cities in <br />Orange County. <br />In addition to restructuring business license tax rates, Measure W contains a Tax Holiday <br />component for unlicensed, past-due, and under-assessed businesses. One of the aims <br />of the Tax Holiday Program is to reach out to the underground economy that exists in the <br />form of home-based businesses. Home-based businesses must apply for and receive an <br />approved HOP before they apply for a Santa Ana Business License. Reducing the HOP <br />fee for Santa Ana home-based businesses is in keeping with the spirit of Measure W, <br />which is namely to make it easier and more affordable for small and home-based <br />businesses to obtain a business license. Therefore, staff recommends approval of the <br />new HOP fee rate of $50.32, a decrease of $269.68 from the current fee rate of $320. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />The City currently collects roughly $35,000 per year for Home Occupation Permits. At this <br />time, it is difficult to anticipate the impact to revenue. Through the efforts of the tax holiday, <br />staff expects more home-based businesses to begin complying with the City’s Ordinance. <br />Therefore, the overall impact of more home-based businesses paying less may be <br />immaterial. <br />EXHIBIT(S) <br />1. Resolution <br />2. Miscellaneous Fee Calculation – Planning and Building Agency – Home <br />Occupation Permit <br />Submitted By: Minh Thai, PBA Executive Director <br />Kathryn Downs, FMSA Executive Director <br />Approved By: Kristine Ridge, City Manager