Arguing they’re nothing more than a cash grab, Langford is dropping annual business licence fees.
“It’s a bureaucratic paper shuffle,” said Mayor Stew Young.
“You’re already in business. You own your building. You’re in business for 10, 20 or 30 years and then you have to apply to a city for a business licence every year?
“I’m going: ‘Why are we doing this?’ ”
Beginning next year, Langford business owners will be asked to pay once for a “perpetual” business licence that will remain in effect until there’s a substantial change to the business, such as a relocation.
The cost of the perpetual licences will be the same as the old annual licences — ranging from $50 for a small home-based business to $100 for small commercial, inter-municipal and non-resident businesses to $200 for a large commercial retailer (more than 5,000 square feet).
The change, approved by city council this week, will mean a net loss of about $70,000 in annual revenue.
Langford administrator Jim Bowden said staff time can be better spent than processing business licences. The hope is that moving to a perpetual licence might encourage some businesses who haven’t been taking out licences to do so, he said.
Young called charging a yearly business licence fee “old thinking” and said “whacking” a well-established business with an annual licence fee makes no sense. “What are we going to do [if they don’t pay]? Kick them out? They’re already employing people. We’re happy they’re here in Langford. They give us three times the [property] taxes as residential and then we mess around with these little $50 business licences,” he said.
Bowden said the change will have no impact on the inter-municipal business licence popular with trades that have calls in different municipalities in the capital region. Those who require an inter-municipal business licence will be issued a wallet-sized card.
Young hopes to develop a system where long-term businesses might be recognized perhaps with silver, gold and platinum business licences for 10, 20 and 30 years of operation in Langford.
Greater Victoria Chamber of Commerce CEO Bruce Carter said the perpetual licence is progressive and reasonable.
“For all that businesses pay for business licences, there isn’t a lot of service that’s provided as a result in any municipality for that licence.”
However, he doubted the change would prompt any business to relocate. “Businesses are going to make the decision on where to locate based on what’s good for the business and what’s good for traffic.”
Saanich Mayor Frank Leonard called the idea “interesting” but said the annual business licence does give a municipality the opportunity to ensure businesses — especially home-based businesses — are operating within zoning regulations.
“I’m open to it, but we would want to dig a little deeper.”
Victoria councillor and businesswoman Shellie Gudgeon said she would look for city council support for a staff report on the idea.
“I think that’s forward thinking and business friendly,” Gudgeon said, adding she would like to see the financial implications for Victoria. “We should be following their lead,” she said of Langford.
Esquimalt Mayor Barb Desjardins agreed it’s something worth considering.
“It’s certainly creating a statement and that may be the biggest value of it,” she said.
