HomeMy WebLinkAboutFCS-12-167 - Discretion Regarding Licensing FeesREPORT TO:Finance and Corporate Services Committee
DATE OF MEETING:
October 15, 2012
SUBMITTED BY: R. Gosse, Director of Legislated Services/City Clerk, 2809
PREPARED BY:
Patricia Harris, Manager of Licensing, 2854
WARD(S) INVOLVED:
DATE OF REPORT: September 28, 2012
REPORT NO.:
FCS-12-167
SUBJECT:
DISCRETION REGARDING LICENSING FEES
RECOMMENDATION:
For information purposes
BACKGROUND:
On June 25, 2012 Council requested a report clarifying the application of Municipal Code
Chapter 549 and the discretion that staff uses in determining a lesser licence fee. The Cherry
Hill Neighbourhood Association had come before Council requesting that the Temporary Retail
Market licence fee be lowered after the Manager of Licensing had determined the full fee should
apply to their event.
REPORT:
Chapter 549 of the City of Kitchener Municipal Code regulates the licensing of Temporary and
Permanent Vendors as well as Temporary Retail Markets. A Temporary Retail Market is
defined as a “market where goods or services are sold that has five or more vendors and is held
for no more than 12 consecutive weeks in one calendar year.
A charitable temporary retail market is a retail market with 5 or more vendors where all the
proceeds from the event go to the charitable organization holding the event. In the event that
the organization is only retaining the proceeds from the rental of the tables and each vendor is
retaining any profits they derive, the event is no longer considered to be charitable. It is viewed
as an event similar to those held at convention centres or hotels by professional organizers
where the vendors are at the event to sell their goods and services and make a profit.
Therefore, even if a charitable organization is hosting the event, the event would no longer be
given the lesser charitable fee as the vendors are there to make profit.
Chapter 501 of the City of Kitchener Municipal Code regulates Business Licence Fees. Section
501.2.5 states that where an application is made for a licence by a recognized, registered bona
fide charitable organization, or where an application is made by an accredited entity or listed
affiliate in relation to an event designated as a Civic Celebration by Council, the fee paid for
such licence shall be the sum of 10% of the fee that would be otherwise payable. In cases of
doubt as to the application of this Section, the Manager of Licensing shall refer the application to
Council for a decision.
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For the past several years the Manager of Licensing has used discretion when determining the
licence fee for a particular event. Chapter 501.2.5 requires that an organization be a bona fide
charitable organization which means that they are to be registered with the Federal Government
as charitable before they would be considered for the lesser fee. This would preclude
neighbourhood associations, service clubs and minor sports organizations from obtaining a
licence for the lower licence fee. In most cases these organizations are not registered as a
charitable organization even though they raise money for charitable purposes. It is understood
that most of these organizations could not afford the maximum licence fees due to the size of
the organization and their limited budgets. Therefore, the Manager of Licensing reviews each
type of event that charitable and/or non-profit organizations apply for and determine whether a
lower fee could apply. The Manager does not waive the fee.
Any organization has the option to appeal the decision of the Manager of Licensing to Council.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Community Priority – Quality of Life
To support the many special events and cultural activities which make Kitchener an exciting and
vibrant city to live in and raise a family.
FINANCIAL IMPLICATIONS:
The fees for temporary retail markets and similar events have been taken into account when
calculating Licensing’s revenue during the budget process.
COMMUNITY ENGAGEMENT:
Not applicable
ACKNOWLEDGED BY:
D. Chapman, Deputy CAO and City Treasurer, Finance and
Corporate Services
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