LOS ANGELES — Street vendors are about to get significant relief from what would have been a $541 annual fee for permits to conduct business, as the Los Angeles City Council Tuesday approved lowering their cost.

In a unanimous vote, council members Tuesday requested the city attorney to prepare necessary ordinances to establish a $27.51 per-year permit fee for the Sidewalk and Park Vending Program.

"I am so excited for this movement to support sidewalk vendors across Los Angeles," Councilwoman Eunisses Hernandez said prior to the vote.

She described street vendors as the "backbone" of local commerce.

In 2018, sidewalk and park vending was legalized in the city, with the annual fee set at $291. City officials had planned to keep the initial fee of $291 for six months before increasing it to $541, but stalled the hike.

For 2022-23, the council initially voted to bump the cost to $541, which takes into account enforcement and other costs. But last year, the council decided to maintain the $291 number based on a motion by council members Nithya Raman and Curren Price, who cited a need to support those impacted by the pandemic.

"By lowering the fee to $27.51 from a staggering $291 annually, we can honor their work while also supporting their business acumen," Hernandez said Tuesday of vendors.

Hernandez also acknowledged the work of street vendors and various organizations for pushing the council to lower the vending fees, as well urging the council to repeal the city's "no vending zones," which prohibited vending at some of the city's top tourist sites.

When the permit fee was first established in 2019, the city estimated there were 50,000 vendors in the city and anticipated 16,000 permits would be issued at the cost of $541, for a total revenue of $8.6 million.

But according to a report from the city's chief administrative officer, actual receipts showed the city received closer to $238,000 from an average of 944 permits, almost 78 permits issued per month.

The report states that if the council approved the reduced fee of $27.51, the city would recover only the administrative costs of issuing permits. Should the city continue to issue 944 annual permits, and at the lower cost, then revenue would come back close to $26K.

In order to cover costs associated with enforcement and outreach costs, which are estimated to be $3.8 million, the city would be required to use the General Fund.

Throughout 2023, the council heard from street vendors when the topic of permit fees came up on the docket. Many vendors shared their hardships, and talked about how the permit fee was a costly burden.

Jeniffer Laurent, the curator for Black Women Vend Night Market, wrote to the council in July 2023. At the time, Laurent expressed her concern regarding a proposed increase to the sidewalk vending permit costs from $291 to $541.

"As a resident of Los Angeles, I firmly believe that vendor fees should remain affordable, particularly for low-income and elderly vendors who heavily rely on sidewalk vending as a means of livelihood," Laurent wrote.

"The well-being of these vendors should be at the forefront of any decision-making process," she added. "Let us work together to find fair and equitable solutions that ensure sidewalk vending remains accessible to all members of our community."

Meanwhile, the LA County Board of Supervisors on Tuesday was also set to consider approving a pair of ordinances that would regulate sidewalk food vendors. The supervisors were expected to vote on a permit program for sidewalk vendors and a subsidy program to help vendors cover permitting fees.