City council to consider business fees
Tonganoxie City Council members likely will consider next month whether to require licenses of businesses in the city.
City Administrator Chris Clark told council members Monday that he hopes to ask them at their July 9 meeting to approve business licenses in Tonganoxie.
Under Clark's plan, the city would charge $10 for home-occupied businesses and $25 for other businesses.
Clark said the move is to ensure the city knows which businesses are operating in the city. It also will help the city track sales tax collections from the state. He wants city officials to be able to identify businesses that have not been paying sales tax or ones that pay infrequently.
"We have had problems in obtaining the money that is owed to the city," he said. "I'm not saying people are cheating us or anything like that. It could be errors of omission."
Sales tax accounts for about $300,000 annually in the city's general fund revenues, according to Clark.
"That's the revenue stream that I'm most concerned about," he said.
A draft of the license application seeks information such as the business name and address, as well as a description of the business. It also asks for names of people to notify in case of an emergency.
"This fee is not intended to be a generator of money," he said, adding that it would cover administrative costs associated with tracking businesses.