The Vancouver City Council will have its second opportunity to vote on a proposal to implement businesses fees to increase city revenues. Vancouver businesses could pay an additional $290 to $10,000 annually, depending on their number of employees.
Fees would include a $275 business license surcharge plus $15 per employee, with no business paying more than $10,000. A second reading and hearing is scheduled for the proposal at its Feb. 27 meeting.
The surcharge would raise a little more than $3 million dedicated to new-capacity transportation projects, which the city hopes will enhance economic development and foster job growth.
A business with one owner and no employees would pay $290, a business with five employees would pay $350 and a business with 100 employees would pay $1,775.
Businesses would reach the cap at about $9,995 with 648 employees, which would include seven businesses in the city, said city Chief Financial Officer Lloyd Tyler.
The city first began considering additional taxes on businesses as a three-part initiative to shore-up funding shortfalls more than a year ago.
The city has not been able to satisfy the business community with previous funding proposals.
Input from the Greater Vancouver Chamber of Commerce and other businesses groups resulted in the current proposal, which combines elements of previous proposals.
“The effort brought about what we feel is a good representation of the business community,” said Tyler.
The ordinance includes a six-year sunset clause that would end the fees after that period of time unless reauthorized by the council. Additionally, an annual review would asses the effectiveness of the program. Tyler said the provisions create accountability and allow for exploration of replacement funding options.
Council heard the first reading of the ordinance at its Feb. 13 meeting. Support of the proposal by the council was mixed. Concern was expressed for its impact on small businesses. Most members of the council agree it is an imperfect method for funding transportation, but they are eager to hear feedback from businesses at the hearing later this month.
If approved on Feb. 27, the surcharge would take affect on April 1. Businesses would be assessed the additional fees as they renew their business licenses. Companies are charged $125 for its first two locations plus $100 for each additional location.
