City of Powell River officials are revamping the way business licence fees are organized. The change is in response to a new tier and fee structure that came into effect in 2012, which attracted complaints from business owners.
Diana Collicutt, planning coordinator, presented the report at the November 1 committee-of-the-whole meeting. She explained that council adopted a business licence bylaw in 2010, which was implemented in 2011 for the 2012 fiscal year. “It replaced a previous bylaw that was outdated, difficult to administer and definitely in need of a fee review,” she said. “It hadn’t been looked at since 1999.”
The new bylaw implemented a four-tier structure with associated fees that applied to businesses based on the actual size of the business, such as the gross floor area, number of employees and level of city services provided, including inspections, use of city roads and policing. “With the new tier structure, smaller sized businesses experienced higher fee increases percentage wise and some larger size businesses actually experienced some decrease,” she said.
When the invoices went out for 2012, the city received some complaints, Collicutt said, that the new fee structure was disproportionate and inequitable. After reviewing the issue, staff proposed amending the bylaw by adding three tiers to allow for a more gradual and equitable fee structure, Collicutt said, adding that 208 businesses will see a $30 decrease in their business licence fees. “We feel that the new tier structure will be more proportionate, it will add greater flexibility in administrating the bylaw and it will recognize the different stages of a business’s economic growth,” she said.
Council passed the initial readings of the bylaw amendment at the November 15 meeting.
The city has mailed out information about the proposed bylaw amendment to all registered businesses and invited written input, which must be received by November 30.
Council is expected to consider adopting the bylaw amendment at the December 6 meeting.
