In a surprising move, the City of Lodi has repealed the business license tax and has begun providing refunds.
On September 18, 2023 the City of Lodi notified everyone that they will no longer collect the business license tax. The decision was based off of 1996’s Proposition 218, meaning it will require voter approval to continue the local tax.
Click here to read the City of Lodi press release.
Those who have paid the tax in the past twelve months will receive a refund within 30 to 60 days (around October 18 – November 18). The twelve months is the statute of limitations under State law. A refund application will not be needed. Refunds will be mailed to the business address from the City of Lodi’s records.
Both City Staff and the City Council discovered the business tax was passed in 1995 and therefore fell within Proposition 218’s retroactivity timeframe. Proposition 218 was the Voter Approval for Local Government Taxes Constitutional Amendment. The text from the initiative provided the following (source):
- Limits authority of local governments to impose taxes and property-related assessments, fees, and charges. Requires majority of voters approve increases in general taxes and reiterates that two-thirds must approve special tax.
- Assessments, fees, and charges must be submitted to property owners for approval or rejection, after notice and public hearing.
- Assessments are limited to the special benefit conferred.
- Fees and charges are limited to the cost of providing the service and may not be imposed for general governmental services available to the public.