briefing – license fee for pushcarts

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License Fee for Pushcarts License Fee for Pushcarts: Operation of a pushcart selling food or other goods in the City requires a street peddler’s license and a pushcart emblem. Background Individuals selling food or other goods from a pushcart are required to obtain a peddler’s license. Peddler’s licenses are required for a variety of activites, including pushcarts and street performers, and are issued by the Department of Business Affairs and Consumer Protection (BACP). The peddler’s license is a two-year license with a fee of $100. BACP issued 850 peddler’s licenses in 2014, an estimated 200 of which were for pushcarts. In addition to the peddler’s license, the operator of a pushcart must obtain an emblem to affix to the pushcart from the City Clerk at the time the peddler’s license is issue or renewed. Revenue Impact In 2014, revenue from the $100 two-year peddler’s license was $80,000. There is no charge for the pushcart emblem. Increasing fees on pushcarts by adding a $20 emblem fee on the same cycle as the peddler’s license, or increasing the current peddler’s license fee by 20% to $120, could yield an estimated $5,000. Legal Authority Increasing peddler’s license fees or charging a pushcart fee is within the City’s authority and requires an amendment to the Municipal Code. State law gives the City the authority to tax “hawkers, peddlers, …itinerant merchants, transient vendors of merchandise…” 65 ILCS 5/11-42-5.

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Provided by Chicago Budget Office 6-23-2016.

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Page 1: Briefing – License Fee for Pushcarts

LicenseFeeforPushcarts

LicenseFeeforPushcarts:OperationofapushcartsellingfoodorothergoodsintheCityrequiresastreetpeddler’slicenseandapushcartemblem.

BackgroundIndividualssellingfoodorothergoodsfromapushcartarerequiredtoobtainapeddler’slicense.Peddler’slicensesarerequiredforavarietyofactivites,includingpushcartsandstreetperformers,andareissuedbytheDepartmentofBusinessAffairsandConsumerProtection(BACP).Thepeddler’slicenseisatwo-yearlicensewithafeeof$100.BACPissued850peddler’slicensesin2014,anestimated200ofwhichwereforpushcarts.Inadditiontothepeddler’slicense,theoperatorofapushcartmustobtainanemblemtoaffixtothepushcartfromtheCityClerkatthetimethepeddler’slicenseisissueorrenewed.RevenueImpactIn2014,revenuefromthe$100two-yearpeddler’slicensewas$80,000.Thereisnochargeforthepushcartemblem.Increasingfeesonpushcartsbyaddinga$20emblemfeeonthesamecycleasthepeddler’slicense,orincreasingthecurrentpeddler’slicensefeeby20%to$120,couldyieldanestimated$5,000.LegalAuthorityIncreasingpeddler’slicensefeesorchargingapushcartfeeiswithintheCity’sauthorityandrequiresanamendmenttotheMunicipalCode.StatelawgivestheCitytheauthoritytotax“hawkers,peddlers,…itinerantmerchants,transientvendorsofmerchandise…”65ILCS5/11-42-5.