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APPROVAL OF REFUND TO BIG VALLEY FORD LINCOLN, MERCURY, INC.
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing a refund in the amount of $68,972.17 for the Business License Tax paid by Big Valley Ford Lincoln, Mercury, Inc.; and
2. Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
In April of 2025, Big Valley Ford Lincoln, Mercury, Inc. renewed their Business License for an auto dealership in full for the 2025 license year. In August 2025, the business owner notified the city that the business had been sold and operations under their ownership had ceased. The customer requested that the City prorate the business license tax for the portion of the year during which the business was actively operating and refund any credit generated by the proration.
DISCUSSION
Background
In April 2025, Big Valley Ford Lincoln, Mercury, Inc., remitted payment for the annual Business License Tax for the 2025 license period in the amount of $118,334.58. In October 2025, the business owner formally notified the City that the business had been sold and that operations under their ownership ceased on August 3, 2025 (Attachment A).
The Revenue Department reviewed the account and confirmed:
• The business license had been paid in full for 2025.
• Operations ceased on August 3, 2025.
• The new owners, Big Valley Ford LLC, completed a separate business license and paid in full pursuant to City requirements.
In addition, the customer maintained two separate business licenses with the City of Stockton. One license was for wholesale operations and one for automobile sales; both licenses were active and paid in full for the 2025 license year. The refund calculation includes amounts associated with both license accounts.
Pursuant to Stockton Municipal Code Section 5.04.080, when a business discontinues operations, the city may prorate the business license tax for the portion of the year the business was actively operating. By prorating the license, the customer received a credit and pursuant to Stockton Municipal Code Section 5.04.140 authorizes the refunds for license fee, penalties and cost collected or received by the city.
FINANCIAL SUMMARY
The Business license fee was deposited in account number 0000-012-415010-100-000-00-00-000-000. The refund will be made from this account.
Attachment A - Big Valley Ford Lincoln, Mercury, Inc. Refund Request