The VBJ spoke with businesses with varying tax obligations in the new year due to the new Vancouver city surcharge. Here’s what they had to say.
Regal Rest Mattress Rich Bartel, owner
5 full-time equivalent employees
Approximate tax obligation in 2007: $250
Bartel said he would like to see wiser fund allocation from the city before he supports the "head tax" model.
"I object to the tax because of all the wastefulness in city spending," he said.
To cope with the extra expense, Bartel said his pricing will have to change.
"You have to either eat it or raise your prices accordingly. Sure, I’m going to have to raise prices, and that’s only going to drive people back over to Portland eventually."
MacKay & Sposito INC. Al Schauer, president and CEO
80 full-time equivalent employees in Vancouver
Approximate tax obligation in 2007: $4,000
Schauer said that while no extra expense is attractive, a company such as his will not be hit too hard by the cost, and that he feels a sense of obligation as a corporate leader to give back to the community.
"I’m not real excited about having to pay anything, but (The tax we will pay) is such a small percentage for a company our size. I do feel we have a corporate responsibility to the city. There are sometimes things that you have to do to maintain (that)."
To cope with the extra expense, Schauer said his fee structure will change.
"(The tax) will add to my overhead, and that will alter my multiplier for charging fees to clients," he said. "But the bottom line is that it helps the community."
Nautilus Inc. Gregg Hammann, president and CEO
500+ full-time equivalent employees
Tax obligation in 2007: $20,000
Hammann welcomes the new tax as a fair method of generating funding.
"We believe it is reasonable as the city and state seek better solutions to keep up with our growing transportation needs," he said in an e-mailed statement. "These funds leverage about $30 million of transportation (and other) infrastructure improvements while supporting further business and residential development in the region."
— Neil Zawicki
After the business surcharge debate, city officials prepare for the challenges of enforcement
By Neil Zawicki
VBJ Staff Reporter
After years of debate and exploration of many options to fund transportation needs, the city of Vancouver in January will make the business surcharge ordinance a reality. The tax is expected to bring $2.4 million annually to help fill a $10 million gap in transportation funding. Opponents say the tax will only hurt small companies while providing inadequate funding. Others say it’s at least a step in the right direction. Like it or not, businesses large and small with annual revenues above $12,000 will have to add the expense of $50 per full-time employee, including owners and managers, to their balance sheets.
City officials say they are prepared to enforce the ordinance, having planned for attempts by some businesses to avoid the tax.
"We’ll be doing a match against all existing licensed businesses," said City Treasurer Carrie Lewellen. According to her records, the city currently has more than 10,000 of those.
"We’re also working to gain access to (the Department of) Labor and Industries to get accurate numbers," she said. "We’ll be looking at sales tax revenue to make sure all those businesses are licensed as well."
Lewellen said the new business license form will also require reports on employee numbers.
"It’s going to be a dual form," she said. "We’ll be requiring both the license and the tax information up front."
Lewellen said the city will also monitor local yellow page listings and plans to add a staff member to handle the extra work.
