The Planning Commission Breakfast Briefing was standing room only! REALTORS received valuable information from the City of Costa Mesa and the City of Newport Beach. PowerPoint presentation slide links are below.
Newport Beach Business License Tax
Dear Newport Beach REALTORS,
Thank you to all Newport Beach REALTORS for your interest in the issue of how the City of Newport Beach Business License Tax is applied to REALTORS, and the discussion of this at the city council’s February 25 study session.
Basically, Newport Beach City Council member Ed Selich championed the effort to address why each individual Realtor pays the Business License Tax, when REALTORS must all work for a Broker of Record, who also pays the Business License Tax.
The discussion at the study session focused on the difference between how Realtors are classified for the purposes of the Business License Tax, as compared to most other Independent Contractors who, for example, are able to work for and accept payment from more than one customer/client. Since all Realtor payment must come through their Broker of Record, the Newport Beach Association of REALTORS (NBAOR) believes that REALTORS are not the same as most other Independent Contractors for the purposes of the city’s Business License Tax.
The NBAOR presentation at the study session was well-received and it appeared that a majority of the council members were persuaded enough by the NBAOR presentation to instruct city staff to return with some options for eliminating the tax as currently required to be paid by individual Realtors and a policy that is consistent with the way it is applied to other businesses. (Click HERE for information on how the Business License Tax is calculated).
We are confident that we demonstrated that Realtors are NOT the same as other Independent Contractors, and NBAOR’s presentation was based on compelling information provided in a letter from the attorney representing the Orange County Association of Realtors when this issue came before the Huntington Beach City Council in 2008. Huntington Beach later revised their policy such that individual REALTORS are no longer required to pay a Business License Tax.
We are optimistic that the current policy will be revised such that it reflects the position taken by NBAOR at the February 25 study session. However, as the saying goes, “it’s not over ‘til it’s over,” so we’ll keep you up to date when staff brings this back to the city council for a vote. We expect this to be in the next month or so.
We appreciate very much the involvement of our members in this issue, including your calls and emails to the city council, signatures on our petition, and attendance at the study session.
For your information, I’ve attached the study session presentation made by the city staff, the response made by Dave Girling of NBAOR, and the link (HERE) to the video of the study session presentation and discussion.
President, Newport Beach Association of REALTORS
The National Association of REALTORS has recently announced a “Broker Involvement Program” for Broker/Managers of real estate offices. Please see the below links to view the details and form to enroll.
The City of Newport Beach Revenue Division supplied the following Frequently Asked Questions with Answers regarding the Business License Tax.