Goodyear business owners will now have to obtain a business license from the city, after a controversial ordinance presented to the Goodyear City Council passed.
The Council previously tabled the measure, which is part of a two-part solution to the city’s influx of unregistered group homes and sober living homes. Under the new ordinance, all group homes will be required to obtain a business license from the city.
Goodyear and other cities in metro Phoenix have seen a rise in illegal sober living facilities that exist largely to warehouse people for bogus therapy companies involved in a Medicaid scam that has ripped off taxpayers of an estimated $2 billion. Many sober homes have been blighted by crime and medical emergencies.
Until now, city officials have been restricted by state laws that keep the exact locations of the homes secret. City officials only find out about them when calls for service are received from the homes or when neighbors file complaints. But the new ordinance sets out to change that.
Currently, businesses are only required to register with the city.
City Attorney Roric Massey said the business registration was implemented by the city in 2006. When a business registers with the city, it is simply letting the city know that it is operating, without a permitting or regulation process.
Under the new business license program, the city can regulate businesses and apply penalties for noncompliance with the rules.
But businesses that are currently operating in the city don’t need to rush just yet.
The city plans to convert registration for existing businesses into licenses this year without requiring any action from those businesses. But next year, all businesses will need to apply for a license with the city. Businesses currently have to register annually and will continue to have to apply for a license annually.
The fee to apply for a license will be the same as the fee to obtain a registration, which is $75, and goes into effect on July 1. Applying for a license will be done through the city’s website, with the process being similar to obtaining a registration.
Under the ordinance, the first penalty for operating a business without a license will be a $300 fine. After that, a second or subsequent offense will result in a fine of between $1,000 and $2,500, with every day being a new offense.
The updated ordinance addresses concerns made by the Council regarding at-home businesses, casual sales and children running lemonade stands or selling Girl Scout cookies.
What businesses are exempt from the business license requirement?
Under the ordinance, businesses engaged in “casual activity or sale” are not subject to the business license requirement. That includes sales that are infrequent, such as a selling a car or a handmade good. It also includes events like garage sales that are less than 14 days long.
Other exemptions include:
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Home occupations that do not receive any customers, such as accountants who work from home.
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Places of worship.
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Public schools.
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Nonprofit organizations that have obtained 501(c) status,
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Businesses conducted by the federal, state or local government.
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School-aged children who are enrolled in public or private school that are engaging in school-authorized or sponsored fundraising.
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Employees of a business that either has a business license or is exempt from needing a license.
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An independent contractor or sales representative that is not registered as a separate legal entity from a parent organization, such as the sale of beauty products, jewelry or kitchen utensils.
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A person conducting business in a residential area that provides educational services or tutoring.
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A real estate licensee working with a business or agency that has a city license or is licensed to do business in the city or town in which the person’s primary place of business is located.
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A person who provides caregiving, childcare or babysitting services and is not required to be licensed by the state of Arizona.
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Special event vendors or sponsors of “special events” as defined by Goodyear City Code.
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Any person who engages in leasing or renting of residential property within the city and is exempt under state law.
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A business with purchasers located in the city if the person is required to pay tax in this state only because their business exceeds the threshold provided in section A.R.S. §42-5043.
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Captive insurers as defined by A.R.S. § 20-1098(10), and in accordance with A.R.S. §20-1098.17(A).
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Businesses with city franchise agreements or city telecommunications license agreements.
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Any other person or profession exempted by Arizona state law from business licensing requirements.
Those with exemptions will still have to make sure they are in compliance with the city’s zoning regulations, state licensing requirements and state statutes.
Reach the reporter at ahardle@gannett.com or by phone at 480-259-8545. Follow her on X, formerly Twitter: @AlexandraHardle.
This article originally appeared on Arizona Republic: Goodyear to begin requiring business licenses. Why?