Local: ‘Business license’ is overkill

October 31, 2007
By Matt Jones

One topic discussed at the blogger bash was the proposed city business license. For a couple of reasons I am opposed.

First, this solution is based on the problem that a single scofflaw taxpayer, the former Wendy’s franchisee, went belly up without paying their taxes to the city for many many months. Unfortunately, this seems like a classic elephant gun to kill a gnat plan. Rather than look at the existing procedures and determine if this was an aberration or part of a growing trend which could be solved with more consistent oversight and timely court action, a proposal comes forward to find an easy way to “assure that this outrage never occurs again.”

Unfortunately this is an all too often government response where the “bad facts” result in a less than stellar law (or ordinance). As an example, lets say that a person commits an outrageous act of DUI and causes the death of someone. In response, the policy makers mandate that all cars be outfitted with a BAIID (Breath Analysis Interlock Ignition Device) to make sure that you have to blow into a tube before starting your car. If there were lots of similar instances, then perhaps we as a society would tip the balance in favor of more regulation and less freedom. If, however, it was the one and only time the circumstances had occurred in this way, I think most people would be much more hesitant to impose this new mandate, despite the likelihood that “such an outrage would never occur again.”

Similarly, if the justification for this ordinance is as reported, this singular outrageous incident, then I would argue that regulating all HRA businesses is overkill. Would it make it easy to enforce? sure, but the convenience of the government should not be the only or even the highest priority.

Second, you will forgive the business community, or the rest of us for that matter, for being suspicious of nominal government fees. With the State’s recent practice of astronomically raising fees, then sweeping them for other uses, we view even nominal fees as a government’s opportunity to create a revenue source which down the line is more palatable than raising general taxes or cutting costs.

Governments are faced with an nearly insatiable pressure to fund new priorities, e.g. new cops, new sidewalks, etc. Unless the council can guarantee that the fees will never be increased (which I don’t think constitutionally they are permitted to do) then any fee, however nominal, is an invitation to “update” as needs arise.

I’ll close with two questions. Where is the will to abolish the garbage tax? What were the fees and regulation for pushcarts when they were originally enacted? Sometimes, the past is prologue.

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6 Responses to “ Local: ‘Business license’ is overkill ”

  1. vaspers on October 31, 2007 at 4:50 pm

    To enforce no drunk driving, all the cops have to do is park in the parking lots of taverns, and pull over every car as it exits. 90% of the time, the driver will have too much alcohol, i.e., more than two beers, in their system.

    You’re right though. Enforce the laws we already have! Passing more legislative gobbleydeegook is just an avoidance of severely punishing the politicians and administrators who stupidly let Wendy’s get away with not paying taxes.

  2. chef kevin on November 1, 2007 at 8:25 am

    The city says “they” will take your Business License away if you aren’t paid up at the end of the year. I fell behind during the year and I got a letter. The city already knows who you are, so why don’t they just shut you down after 2 months of being delinquent? Since they know who you are there shouldn’t be a need for a fee or a license.

    Personally, I think it FAAAAR past time to abolish the 20+ year old “temporary” tax anyway and tell the Civic Center to stand on its own two feet. The city expects those who feed the HRA money into Civic Center coffers to remember to pay in and be responsible for doing so, but won’t hold the Civic Center responsible to turn positive numbers.

  3. In the know on November 1, 2007 at 10:20 am

    License is spelled wrong in the header. Nice job. I’m sure Ahl’s journalism students are impressed!

  4. Billy Dennis on November 1, 2007 at 10:36 am

    Thanks for the input.

  5. matt jones on November 1, 2007 at 1:06 pm

    I’m sure the spelling error was mine, but I appreciate your careful attention to the arguments made in the piece.

  6. Billy Dennis on November 1, 2007 at 1:09 pm

    No, the spelling error was mine.