There was a 20.80% decline in the number of business licenses issued by the Department of Commerce (DOC) during the first quarter of Fiscal Year 2023, compared to the same period the year before. The total number of licenses issued in the first quarter of Fiscal Year 2022 was 4,616 but for FY2023, the number fell to 3.656 or 960 less.
According to DOC’s first quarter performance report for FY2023, the significant decline is the result of the involvement of other government agencies to enforce their mandates, such as tax clearance form and the workmen compensation clearance form.
The report states that after the Director of Commerce Petti Matila met with Deputy Treasurer Levi Reese and staff, and Workmen’s Compensation Commissioner Sagatea Filoialii and staff, a revised business license renewal process was adopted to streamline the process.
This revised process allowed applicants to complete the renewal process and pay for their business licenses, instead of waiting for the tax and Workmen’s Compensation clearances.
The head of DOC’s Business Division, Alex Zodiacal, notes in the report that everything was going smoothly until sometime in October, when the Revenue Division notified DOC that applicants must obtain tax clearances before they pay their business license fees at the Revenue Division. He said, this has once again delayed the process of business license renewals.
Joint enforcement efforts by the Department of Homeland Security and the Department of Health Environmental Health Services Division resulted in many unlicensed business activities cited. Violators then reported to DOC to obtain licenses after the fact.
DOC anticipates that the number of business licenses will rebound due to their Emergency Rental Assistance Program; the Business Grant and Loan Program; and the pending SSBCI program, where a valid business license is required for eligibility.
