City updates business license ordinance
The Chelsea City Council recently approved a resolution to amend its business license ordinance.
City Clerk Crystal Etheredge said the ordinance had been in place since 2011, and because so much has changed in the past nine years, it was time for updates to be made.
“Being one of the fastest growing cities, we kind of have to keep up with changes in the times,” she said. “We had a suspicion ours were not on par with other surrounding cities our size.”
The city hired a third party (HDL) to do a business license ordinance review and fee schedule to see where Chelsea was compared to other cities similar in population and proximity.
Etheredge said one of the facets they were looking at in terms of the fee schedule was to make a couple of adjustments in some areas like big box retail and construction.
The business license year is from January to December. Renewals typically go out in November, but due to COVID-19, it will be in December. There will be no penalties or interest until after Feb. 15.
The city previously had a third party administrator handle the business licenses, but the city took it over last year. By doing it, the city could save the money on processing and transaction fees.
“It made good sense to bring it in house,” Etheredge said. “It’s going to be worth it in the long run.”
While all businesses won’t see a change in their rates, here is a list of the ones that are changing:
CHANGES IN FLAT FEES FOR RETAILERS PER YEAR
- Up to $250K: $200
- $1 million: $750
- $2 million: $1,000
- $5 million: $1500
- $10 million: $3,000
- Over $10 million: $3,000 plus 50 cents per thousand
CHANGES FOR CONSTRUCTION COMPANIES PER YEAR
- Construction residential general contractor: $300
- Residential subcontractor: $200
- Commercial general contractor: $400
- Commercial subcontractor: $250
CHANGES IN DEVELOPERS AND HOME BUILDERS PER YEAR
- Up to $1 million in sales: $300
- $3 million: $500
- $5 million: $750
- Over $5 million: $1,000
ALCOHOL LICENSES
- Beer: $100
- Wine: $100
- Liquor: $250
- Restaurant alcohol license: $250
“This just got us up to the average of surrounding cities,” Mayor Tony Picklesimer said. “We are not the highest, but we’re no longer the lowest.”
Earlier this year, the city contracted with a company to find businesses that were operating within the city without a business license. With over 2,500 businesses in the city, Etheredge said she was surprised to find out there were around 500 found operating without a license.
“We contacted them and sent a bill,” she said. “They had to get compliant and purchase a business license and pay any penalties assessed and move forward. For those that were not doing business anymore, we were able to close those accounts so they don’t show up as delinquent.”
Picklesimer said the city is not trying to get anything it’s not entitled to, but if people are doing business in Chelsea, they need to have a business license.