(Guest Post by Aaron Stahl)
The City of Fayetteville narrowly passed the proposed business license last Tuesday. It was not a good day for Fayetteville businesses I can assure you. Fayetteville non profits, businesses, and home based businesses are now forced to pay a yearly fee, fill out a form, and answer intimate questions about their businesses or risk a $250/day fine and their City utilities being shut off. No mind to the businesses that are struggling, can’t afford it, or are otherwise exasperated. No mind to the fact that businesses don’t need the proposed “help”. No mind to the fact that voluntary alternatives were proposed. Forcing people is easier.
Many months ago I decided to take a stand on this issue based on these principles, not because I couldn’t afford the nominal fee or somehow find the time for the extra red tape the proposal would force on me. I knew the principles of the issue did not add up. We did not need this. It did not solve the “problems” it said it would. And in fact it would make things worse for many businesses and take away a shining kernel of business freedom in Fayetteville.
Unfortunately for Fayetteville businesses and their employees, principle did not win out. In fact, during the City Council meeting last Tuesday, I witnessed principle get tossed by the wayside as some of the authors of this proposal fudged, misled, and spouted half-truths on their way to its approval. I also witnessed an organization, The Chamber of Commerce, which I used to be a part of (until Tuesday) grossly misrepresent me and the vast majority of its membership.
Over 30 years ago Fayetteville voters rid itself of the business license (or occupation tax as it was called back then) in exchange for a City/County sales tax. The government got its tax and the businesses were removed of the occupation tax burden. But sure enough, 30 years later with the support of the Chamber of Commerce and without the input of the voters we find ourselves sitting with both. It took a while but the bait and switch is complete.
Why would the Chamber of Commerce support such a piece of legislation? Don’t fees, fines, and red tape sound anti-business? Their reason for supporting this proposal was because they needed “information” to help them recruit businesses to Fayetteville. The funny part is Chung Tan of the Chamber of Commerce spoke up on Tuesday night and said they could get the information they need already, but that it’s hard and this would make it easier.
Well guess what? It’s called a job. It’s not supposed to be easy. I certainly don’t pay my Chamber dues to have them spend their time passing blanket legislation forcing every business to pay money and waste their time filling out forms to make their jobs easier!
In my opinion the real reason for the Chamber’s support lies with their newfound contract with the City. Last Fall the City awarded the Chamber of Commerce a $250,000 contract for “economic development”. One would think that “economic development” would not include more red tape and fees on businesses.
The proponents act like this is no big deal. However, now when a business owner cuts a check for the business license they just might not go out and eat that night as planned. Or they might not go to the movies. Or they might not make that purchase.
The logic from City officials is that the fee is so small it won’t affect anyone. Really? When was the last time you paid $10 for a hamburger and fries? It’s only a few dollars more than a good deal but we’d all likely balk at that price. Any extra fee or cost will affect people’s decisions. And that, in this case, will negatively affect our local economy. But, the absence of such logic is government intelligence at its finest.
Perhaps more revealing as to why this got passed is that one of the Chamber’s “performance items” in the City contract was the implementation of a business registry. Given this, the Chamber’s support should come as no surprise. I would presume the Chamber would probably like that contract renewed next year. With the bone they threw the City last week I’d say they’ve got a good shot at just that.
It looks more and more like the Chamber is becoming an instrument of the City instead of being an advocate for business. If you doubt me, just check out the Proposal for Consulting Services that the Chamber provided the city. You’ll notice how in this proposal each working member of the Chamber has their time allocated between working for the Chamber and working on the new City contract. The President of the Chamber himself offered up half his time to dedicate to the City contract. Hmmm, I don’t recall getting a 50% discount on my Chamber dues because they’re working half as much.
Furthermore the Chamber and proponents offered up their support last Tuesday by saying they supported it and businesses supported it. I own a business and am a member of the Chamber. I don’t support it. Every business owner that I’ve talked to doesn’t support it. Did the Chamber consult their membership before offering their blanket support? I never heard anything. Neither did other Chamber members I’ve talked to.
Aside from the Chamber’s involvement in this mess I witnessed Don Marr cough up some interesting half-truths (I’m being generous) and distortions last Tuesday. I heard, half in horror and half amused, as he countered my claim that businesses had not been consulted about this by saying that this was spawned from the Fayetteville Forward Business Incentive Group in which a large number of businesses were represented. A quick search of that summit shows that they did indeed support such a measure. A voluntary one! Voluntary. Not one that forces businesses to pay money, fill out forms, or be shut down.
There’s your first half truth.
Second he told the Council that there was “business involvement” in this ordinance because of a public forum held by Eva Madison. I was there, and there was zero business support. Zero.
The only business owner that was even remotely supporting of it would only offer that support if this was a voluntary measure. Again, voluntary.
Somehow Don Marr took the information from those two meetings and regurgitated it to the Council as business support for forcing fees on everyone in town.
Another doozy I heard from him last Tuesday night was that electricians, plumbers, and the like need a license in Fayetteville in order to get licensed by the State. Hmm, so how have we had plumbers and electricians in Fayetteville for the last 30 years if that’s the case?
The truth is all a plumber or electrician needs to do is get a letter from the City stating that Fayetteville doesn’t require a business license and show that to the State. It’s a piece of cake. The proponents would have you believe that these tradesman would rather pay a YEARLY fee and fill out a YEARLY form instead of getting a free piece of paper ONE time. I applaud him for his sales skills, but that is a tall tale if I ever heard one.
The truth about all this is simple. Fayetteville has grown by leaps and bounds over the past 30 years without a business license. We’ve grown by more than any other City in Arkansas without one. Businesses in this town used to love the fact that Fayetteville didn’t require this. That even with all the red tape from the State and Federal governments you could still find a small kernel of freedom in the City of Fayetteville.
We didn’t need a license for the past 30 years and we don’t need one for the next 30 years.
My Chamber membership ended last Tuesday with their support for this measure. I encourage all of you who feel the same to rescind yours as well.
For more business license coverage check out our previous articles:
http://mid-riffs.com/2010/03/its-business-license-time/
http://mid-riffs.com/2010/04/more-business-license-nonsense/
http://mid-riffs.com/2010/03/convicted-felons-and-good-ole-boys/