One dollar every ten days. That’s the current penalty for not having a business license or not renewing a license. It’s not really enough to scare business owners who would prefer not to pay their taxes or fees, said Alderman Charles Quincy Troupe.
On Jan. 13, the legislation committee of the Board of Alderman passed a bill that would increase that amount to $100 every 10 days, up to $500 annually. The bill still has to pass through the Board of Alderman and the mayor before it comes law. Troupe expects that to happen in the next few weeks.
In June 2009, the Missouri State Auditor’s Office found that of the 3,208 businesses reviewed, 700 operated without a valid business license for at least 2 years.
Of the 700 businesses noted above, 235 operating without a valid business license for at least 3 years.
“Some businesses have been operating for five years and never paid taxes,” he said. When a business doesn’t have a license, it can get away with not paying taxes as well. The estimated revenue that the city loses from such businesses is close to $5 million, Troupe said.
Regarding the bill’s language, Ward 27 Alderman Gregory Carter and Alderwoman April Davis wanted to take out the limit of $500 because it was not a grave enough consequence for some businesses.
However, Alderman Shane Cohan of Ward 25, said that penalties too steep would be detrimental to new business owners who are unfamiliar with the application process.
Alderwoman Dionne Flowers of Ward 2 said that forcing businesses to get a license is not easy, as she has experienced in her ward. Although she works with the police to shut down businesses without licenses, they just continue to operate regardless.
The board bill 251 states:
“In addition to any other penalties, any person who is required to take out a license, or any person whose license has expired, and notice has been given by the License Collector, shall if not paid within ten days after notice, pay a penalty of $100 and for every ten days thereafter one hundred dollars.”