Audit Shows 350 Businesses Without Proper Licenses

Almost nine out of 10 commercial property owners in Union City are operating without valid business licenses, a recent audit of county tax records revealed.

According to city staff, the audit found that 348 of 400 commercial property owners did not have valid business licenses to lease out their properties.

The city may be owed close to $1 million in delinquent fees.

A revenue collections officer is combing through the list of businesses and notices will be sent to owners asking them to pay for the current year plus three previous years worth of business license taxes (a sample letter accompanies this article). Failure to respond may result in additional fees.

According to staff, the business license tax rate for commercial leasing activities is 86 cents per $1,000 of gross income with a minimum fee of $102.

If all identified business owners comply, the city may generate anywhere between $400,000 and $800,000.

The audit was part of a continued effort to ensure the City of Union City is collecting all taxes and fees the city is owed.

Last year, the city did a similar review of rental properties and found that 2,600 parcels were not owner-occupied and required business licenses, according to Rich Dirge, administrative services director for the City of Union City.