Local Business Owners in Pismo Beach Challenge Aggressive Licensing Enforcement

Pismo Beach Business Owners Push Back Against Aggressive Licensing Enforcement

PISMO BEACH, Calif. — Tensions are rising in Pismo Beach as local business property owners voice their concerns over the city’s recent aggressive enforcement of outdated licensing ordinances. Many are calling for an urgent update to the municipal code, which they argue is being misapplied by a third-party auditing agency.

Last year, Pismo Beach city leadership enlisted the services of H.D.L., an auditing firm tasked with collecting business license taxes. This shift has sparked controversy, as property owners claim that the enforcement is based on a 1987 municipal code that references an even older ordinance from 1946.

Mark Burnes, a local property management servicer, expressed frustration, stating, “The city has begun attempting to enforce an outdated and archaic business license ordinance.” He pointed out that the 1987 update specifically excluded several sections of the original ordinance that are now being cited in enforcement letters.

These letters, sent by H.D.L., have alarmed property owners with their aggressive tone, threatening non-compliance penalties, misdemeanors, and even potential jail time for failure to pay business license taxes—taxes that many landlords have never been required to pay before.

“They’ve never in all these years come after landlords,” Burnes noted. “Now we know why: they repealed that part of the ordinance. The staff is either unaware of that or they are willfully trying to circumvent it.”

Local landlords argue that they already pay property taxes, and their business tenants are responsible for their own business licenses. The sudden demand for landlords to obtain business licenses has left many feeling blindsided.

City Manager Jorge Garcia defended the city’s position, stating, “Our business code is very clear that any business activity transacted in the city requires a business license.” He explained that rental income constitutes an underlying business activity, thus necessitating a license.

Garcia acknowledged the concerns regarding the language used in H.D.L.’s letters, admitting they may have been “a little too heavy-handed.” He assured that the city is committed to engaging in dialogue with property owners to address their concerns.

As the city council meeting approaches, property owners are eager to voice their grievances. Initially expecting a public hearing, they discovered that the agenda only allows for discussion without any immediate action. Many plan to attend the meeting, advocating for a change to a public hearing format to ensure their voices are heard.

Garcia confirmed that public comment will be welcomed at the meeting, emphasizing the city’s desire for constructive dialogue. “We want to work together to make sure that we have it right here for Pismo Beach,” he stated.

As the situation unfolds, local business owners remain hopeful for a resolution that respects their rights and clarifies the city’s licensing requirements. The council meeting is set for Tuesday night, and all eyes will be on Pismo Beach as stakeholders seek to navigate this contentious issue.