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November 29, 2007
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Business license hikes could cost hundreds of dollars
By Kathryn F. Pickard News Reporter

The Grove Hill Town Council will vote on a proposed business license ordinance during the Dec. 3 meeting that could more than quadruple license costs for many businesses.

New business license ordinances have been mandated by the state for all municipalities.

Although the application process and other actions related to the issuance of business licenses must meet state guidelines, many municipalities are taking the opportunity to change their business license fees.

The new ordinances are to "provide a statewide uniform system for the issuance and calculation of the cost of municipal business license, provide a common business license application form, to provide a uniform definition of gross receipts and delivery license, to provide a uniform system for the municipal business license audit process and the taxpayers' appeal of municipal business license assessments and for the filing of claims for and payment of refunds, to provide uniform statutes of limitation for assessments and refunds that conform with their counterparts for municipal sales and use taxes, to allow a municipality to lawfully exchange tax information related to business license taxpayers and to provide delayed effective dates and transition rules."

Each municipality is free to set its own fees as long as it doesn't go over the maximum allowed by the state.

Grove Hill town council members were given a copy of a proposed ordinance at their last meeting that suggest a new fee schedule. Many of the license fees had not been changed since the 1960s. Some fees are proprosed to be increased by 400 percent or more.

For example:

Under the present ordinance a pulpwood dealer and/or logging contractor pays $35 for a business license. The proposed ordinance sets a fee for forestry related businesses, such as logging, forestry, timber track operations and timber management at $150.

General and building contractors are currently paying a fee of $50 a year. Plumbing contractors pay $25 and electrical contractors pay $25. Contractors who are licensed for plumbing and electrical work pay $35. The proposed ordinance sets a fee of $150 for general contractors for buildings, residential and subdivisions, and for heavy construction such as highways, bridges, streets, water and sewer. Specialty contractors, such as plumbing, heating and air conditioning, electrical, painting, etc. will pay $75.

Florists currently pay $25. Miscellaneous retailers, such as florists and gift shops will pay at least $75 under the proposed ordinance, based on the business' gross annual receipts.

Beauty shops and barber shops are paying $25 and $5 for each additional operator. Tanning salons currently pay $36. The proposed ordinance sets a fee of $100 for personal services, such as hair, skin, barber, beautician, diet, nails, tanning and funerals.

Drug stores and grocery stores currently pay from $10 to $200, depending on the business' gross receipts. The proposed ordinance sets a business license fee of $75 up to $750 for grocery stores and drug stores.

Gasoline and oil distributors pay $100 in addition to gallonage tax. Under the proposed ordinance gasoline retailers will pay from $75 up to $750, depending on the gross receipts.

Attorneys, physicians and dentists are paying a fee of $100. Under the proposed ordinance they will pay $200.

Newspaper publishers pay a fee of $50 now. The proposed fee is $250.

Not all business license fees were increased in the new ordinance.

Banks currently pay a $200 business license fee. The proposed ordinance sets fees at $10 for ATMs and bank branch locations and $125 for a bank's main office, a savings and loan branch location and savings and loan main office.

Fortune tellers were also given better rates. Under the current ordinance they are required to pay $100 per day. The proposed ordinance sets a fee of $500 per year.
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