Holmes Beach is expected to increase the local business tax 5 percent next month.
The prospect appeared to concern some commissioners at the April 10 work session until city clerk Stacey Johnston pointed out the relatively small dollar amount of the increase.
The tax boost amounts to roughly $6 for larger companies and less for small service providers.
“The tax is on the services a business owner provides,” Johnston said.
All revenues generated by the local business tax flow into the general fund, Johnston said.
The top proposed business tax amount is $191.44 for restaurants with seating for more than 100 patrons or public lodging establishments with seven units or more.
“It seems very reasonable,” said Commissioner Jim Kihm.
Johnston said the local business tax assessed to residential rental property should possibly be increased.
“It’s now $31.90 and there’s a lot of work that goes into those,” Johnston said.
State law allows increasing local business taxes a maximum of 5 percent every two years.
The city commission raised business taxes for the first time since 2001 with a 5 percent increase in 2012, then added 5 percent increases in 2014 and 2016.
Johnston said the commission, coming out of the Great Recession in 2012, advised increasing the local business tax the maximum of 5 percent every two years as allowed by state statute.
The ordinance will be on the April 24 agenda for a public hearing and first reading and could be adopted on final reading at the May 8 meeting.
An oddity in the ordinance provides for assessing the local business tax on new car and boat dealers. Holmes Beach doesn’t have either type of business, Johnston said.
“I don’t know why it’s in there,” she said. “I don’t even think we have zoning for those businesses.”
Adopting the ordinance will allow the city database to be updated before the 2018-19 business tax receipt renewals are sent, Johnston said. Business tax receipt renewals are due by Sept. 30.
“I am recommending commission consensus to move the ordinance to first reading at the next meeting,” Johnston said.
The commission complied.
The city commission will next meet at 6 p.m. Tuesday, April 24, at 5801 Marina Drive, Holmes Beach.
Proposed Holmes Beach business tax increase
A 5 percent increase in the Holmes Beach local business tax will be considered April 24.
CATEGORY: 2016 – 2018
Public lodging: $182.32 – $191.44
7 or more units, plus $3.82 per unit
Car wash, detailing: $91.16 – $95.72
Beauty parlor: $66.84 – $70.18
Shuttle vehicles: $60.77 – $63.81
Residential rental units: $30.38 – $31.90
SOURCE: Holmes Beach city clerk Stacey Johnston.