New York City Department of Consumer Affairs
License Fee Revenue The New York City Department of Consumer Affairs (Department) is authorized to issue licenses and permits for certain businesses operating in New York City and to collect associated fees. For the fiscal year ended June 30, 2010, the Department's revenue totaled $30.9 million and consisted primarily of $9.7 million in license fees, $9.2 million in franchise fees, and fines totaling $7.2 million. The Department issues licenses to more than 71,000 businesses in 55 business categories such as home improvement contractors, electronics stores, cigarette dealers, parking lots, and locksmiths. Depending on the license type, a license period is from one day to two years and full-term license fees range from $10 to $2,740. We determined that the Department could likely generate additional revenue if it used better methods to identify businesses that operate without a required license. Our audit tests indicate that the Department's current methods - which rely primarily on street patrol and complaint investigation - are not sufficient to identify businesses operating without a license.
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