2025-049 - GRANTING A WAIVER OF BUSINESS LICENSE LATE FEE PENALTIES FOR BUSINESSES UNDERGOING THE BUSINESS LICENSE DISCOVERY AND COMPLIANCE AUDIT PROCESS RESOLUTION 2025-049
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS GRANTING A
WAIVER OF BUSINESS LICENSE LATE FEE PENALTIES FOR BUSINESSES UNDERGOING
THE BUSINESS LICENSE DISCOVERY AND COMPLIANCE AUDIT PROCESS
WHEREAS, the Town of Los Gatos requires all businesses operating within the Town to
obtain and maintain a valid business license in accordance with the Los Gatos Municipal Code;
and
WHEREAS, the Town recognizes that businesses may, from time to time, be subject to
audits conducted by the Town or its authorized agents to ensure compliance with business
license tax requirements; and
WHEREAS, during the course of such audits, businesses may become aware of
unintentional underreporting or late payment of business license taxes; and
WHEREAS, the Town Council desires to encourage voluntary compliance and
cooperation during the audit process by providing temporary relief from late fee penalties
under specific circumstances; and
WHEREAS, the Town will follow best practice and allow each business 90 days from the
date of notice of noncompliance to achieve compliance without late fee penalties; and
WHEREAS, waiving late fee penalties for businesses actively participating in the audit
process promotes transparency, fairness, and goodwill between the Town and the business
community.
NOW,THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los Gatos as follows:
1. Waiver Authorization
The Town Manager or their designee is hereby authorized to waive business license late
fee penalties for businesses from the date the underpayment was identified that are:
• Actively undergoing an audit initiated by the Town or its authorized agents; and
• Found to have underreported or delayed payment of business license taxes
without evidence of willful neglect or fraud.
2. Eligibility Criteria
To qualify for the waiver, a business must:
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Resolution 2025-049 September 16,2025
• Fully cooperate with the audit process;
• Submit all required documentation and information in a timely manner; and
• Pay all outstanding business license taxes due as determined by the audit within
90 days of receiving notice of noncompliance.
3. Limitations
This resolution does not apply to:
• Businesses found to have intentionally evaded business license tax obligations;
• Penalties assessed prior to the effective date of this resolution unless the audit
was initiated prior to that date.
4 Effective Date
This resolution shall take effect immediately upon its adoption and shall remain in effect
unless amended or repealed by the Town Council.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 16th day of September 2025, by the following vote:
COUNCIL MEMBERS:
AYES: Maria Ristow, Rob Rennie, Rob Moore, Mary Badame
NAYS: Mary Badame, Mayor Matthew Eludes
ABSENT: None
ABSTAIN: None
SIGNED:
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MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
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TOWN C K OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Resolution 2025-049 September 16,2025