The Town of Sylva is once again considering changing its business license fee schedule from flat rates to a scale based on gross receipts. A vote is expected June 2, but the public hearing will be May 19. The objective is for the town to get more revenue, which could pad its capital improvements budget. Revenues, in fact, may double. The plus for businesses is nonexistent, but the balance of power is not in their court.
Nearby Hendersonville now uses a gross-receipts license fee system. When they switched, they collected an additional $400,000. 25% of that amount, however came from video poker fees, and Sylva won’t be collecting any of those until next year.
Proposed is a $15 increase to the current $35 fee. Businesses earning $3 million or more would be punished with a fee of 35 cents for each additional thousand dollars in sales. There would be no cap for the additional fee. Many involved in the decision-making process appeared to pat themselves on the back for being so kind to small businesses.
