Business Licenses and Permits

A common trend sweeping across the country is for cash-strapped communities to implement new business license tax programs. During the ongoing economic crunch, many cities and towns have looked for ways to help revenue shortfalls. Unfortunately for business owners, increasing business license taxes or creating a whole new business tax program has been a popular approach.

The city of Sedona, AZ is one example of many communities that are considering expanding its business license tax program. City officials are moving quickly with a plan to make it mandatory for almost all businesses in Sedona to pay a $25 business license fee. Along with the fee, the city would also like to implement stricter enforcement penalties.

Even with the business license fee expansion, a few types of businesses will still be exempt from the fee. Service industries with no taxable products like massage therapists won’t have to pay the business license fee.

Hopefully the nation’s economy starts to improve. City governments always turn to raising taxes to help generate revenue, even if it’s not the right solution. The increase in taxes can affect businesses, but the ultimate losers are the consumers who are forced to pay more for the goods they need.

Ryan Julson, Business License Research Analyst, Corporation Service Company

Tags: business license, Corporation Service Company, fee, Sedona, tax