Columbia City Council gives first-reading approval to business fee reform plan

September 18, 2019

Columbia City council on Tuesday gave first reading approval to a business fee reform proposal by Moe Baddourah. Under the proposal, businesses which have a 501(c) tax status from the IRS — but otherwise operate as a profitable company — would begin paying business license fees like the rest of the city’s businesses.  Baddourah first made the proposal in 2015.

Charities and places of worship would remain exempt from business license fees.

Baddourah issued the following statement:

“After more than four years of fighting, I’m pleased the business fee reform plan has received first-reading approval. Columbia suffers from an extremely narrow tax base, and it’s a problem that impacts nearly every aspect of city government, and it means average taxpayers shoulder more than their fair share of the costs.

“One of our highest priorities should be expanding the tax base to better support essential services and help ease the cost burden on ordinary citizens. This business fee reform plan is a way to do that. It will mean better, more stable funding for vital services such as public safety. My hope is that it will provide the additional resources are police department so badly needs.

“It is also a matter of fairness. Those businesses that pay their fair share are put at a disadvantage when a competitor has a tax exemption.

“This plan would not impact charities. It would only impact businesses such as hospitals which are tax-exempt but which operate largely as profitable companies. These businesses use city services, and it’s certainly reasonable to expect them to help shoulder the cost of those services.

“Based on the feedback I’ve received, the people of Columbia overwhelmingly support the idea. I hope and believe it will win final approval.”