By Matt Neznanski
Gazette-Times reporter | Posted: Wednesday, July 23, 2008 12:00 am
A group of representatives from local business will join city councilors on Thursday to start planning details of a business license fee in Corvallis.
The City Council's Administrative Services Committee will host members of a stakeholders' committee, formed to hash out who would be expected to pay, and how much.
"This is an implementation group, not a decision on whether to have a business fee," said Mayor Charlie Tomlinson.
The now-disbanded Downtown and Economic Vitality Plans Implementation Committee was given the job of deciding how to raise money to pay for Prosperity that Fits, a citywide plan designed to build targeted economic prosperity in Corvallis.
After considering and abandoning plans to increase hotel room taxes or impose a levy on prepared food and entertainment, the group finally landed on charging a business license fee and forwarded a recommendation to the City Council, which agreed to support the idea.
As proposed, businesses would be charged at least $50 a year, and some would pay as much as $1,000, depending on the number of employees. People doing business in town, but not based here, would pay a $50 annual rate.
That's been a sticking point for local real estate agents who wonder how a fee might impact their industry, which relies on agents from all over the valley dropping in to show houses on short notice.
Realtors who want to show a house call the listing agent and often leave a message that they'll be on the property. While this gives agents a broad inventory, it also means they assume liability for others in the homes they have listed for sale.
It's that notion that ultimately led the Willamette Association of Realtors to officially oppose a business license fee on the grounds that agents objected to the responsibility of collecting such fees.
Real estate agents now are part of the committee charged with creating a plan for the fee. Other stakeholders include members of the Corvallis-Benton Chamber Coalition, Downtown Corvallis Association, Corvallis Independent Business Alliance, local nonprofits and high-tech companies.
Ultimately, most administrative rules will be investigated by city administrators, who have promised to look into how other cities collect and enforce payment of similar fees.
As proposed, money collected from the fee must be used strictly for programs outlined by the Prosperity that Fits plan. These include business incubation and support services, promoting growth in specific industries and hiring a business retention specialist to work on behalf of the city.
Matt Neznanski can be reached at 758-9518 or matt.neznanski@lee.net.
IF YOU GO
WHAT: Business License Committee Meeting
WHEN: 4 p.m. Thursday
WHERE: Madison Avenue Meeting Room, 500 S.W. Madison Ave.