Unlicensed Businesses Targeted In Concord Tax Data Deal

CONCORD, CA — City officials could identify businesses operating without licenses by comparing Concord records with state income tax data under an agreement the City Council will consider Tuesday.

The consent calendar item would authorize the city to renew a reciprocal data-sharing agreement with the California Franchise Tax Board.

The agreement would begin Jan. 1, 2027, or when the council adopts the resolution, whichever occurs later, and continue through Dec. 31, 2029.

The program allows Concord to find taxpayers who file business-related income tax returns but do not hold city business licenses.

City staff regularly audits business license records to ensure businesses operate legally and pay required taxes and fees.

Concord’s Business License Tax Code requires licenses for all business activities or transactions conducted within the city. The tax generates revenue for general city operations, but staff said some businesses intentionally or unintentionally fail to obtain licenses.

The city has participated in the state data-sharing program for years, but its previous agreement expired in December 2025. The Franchise Tax Board requires Concord to adopt a resolution authorizing the exchange in addition to signing a standard agreement.

Concord would send the state ownership names, business addresses, employer identification numbers, and business start dates annually between April and July. City code already classifies that information as public.

The Franchise Tax Board would send similar information from its database to the city each December, including records involving taxpayers who file business-related income tax returns.

The agreement prohibits Concord from reproducing, publishing, selling, or releasing confidential data. Only designated city employees responsible for administering the business tax program could access or use the information.

The agreement would have no financial effect and would require no budget adjustment or transfer. Staff recommends that the council approve the resolution and authorize the finance director to execute the agreement, subject to approval by the city attorney.

Concord City Council Meeting
6:30 p.m. Tuesday
1950 Parkside Drive and online