Staff recommends approval.

The City’s Schedule of Fees sets the amount to be charged for various City services other than those set forth in the City Code or established by separate ordinance or resolution.   The Occupation Business License Fee sets the fee associated for operating a business in the City.  As required by the Missouri State Constitution, the revenues generated from the proposed fee amendments do not exceed the cost of providing the service.  Moreover, the proposed fees were compared to surrounding jurisdictions to ensure they are in line with regional averages.

The City’s existing business license fee, listed under Section VI.A.9 of the Schedule of Fees, is $75 for the first $25,000 of gross receipts plus $0.31 for each $1,000 in gross receipts over $25,000.  This fee applies to all businesses including startups, established businesses, and large or small businesses.  This fee structure is commonly used by municipalities in Missouri. 

Staff proposes to add business license fee that would be charged to any new business located in Independence with 10 or fewer employees; this fee would be $75 for the first year and in subsequent years the fee would shift to our current business license fee.

The change recommended would add:

VI.       Licenses/Permits

A.      Business and Occupation.  The following application fees apply for license for businesses operating in accordance with Chapter 5 of the Code:

9.       Occupation Business License Fee – new business located in Independence with 10 or fewer employees   $75

The existing fees in Section VI Licenses/Permits would be renumbered accordingly.

This flat rate fee for new businesses provides a known fee for these businesses instead of a fee tied to gross receipts for their initial year. 

The estimated fiscal impact to the City is approximately -$1,000.  The Revenue from this service is deposited in Community Development account 4460 in the general fund.