Weston wants to charge its own fees
By Joe Kollin
Staff Writer
March 14, 2004
WESTON * The cost of doing business in the city could go down for some merchants and up for others if state leaders give local governments the right to update their ''archaic'' tax structures.
The Weston City Commission recently voted unanimously to join the Boca Raton City Commission and the Florida League of Cities in an attempt to get Florida legislators to eliminate the state's decade-old ban on the ability of cities to set their own occupational license fees structure.
The state in 1993, fearing that cities were using the tax to put more money into their coffers at the expense of businesses, placed restrictions on local governments. The law, for the most part, forbade cities from changing the amounts they taxed and the way they imposed the taxes effective in 1995.
Without the ability to make changes, cities say they can't update the tax and make it fairer.
In the case of Weston, the city wasn't even created until 1996.
Whether the Legislature considers the request during the 60-day session that started last week can't be determined.
''Now you can't make adjustments to the occupational license tax,'' Weston Mayor Eric Hersh said. ''There are inequities in the system that need to be adjusted and without a change in the state law, we can't do it. Some categories of businesses we charge too much for and some need to be reclassified.''
For example, retail businesses are a major problem. Based on the current code, an optometrist who examines eyes and sells eyeglasses needs two occupational licenses, one for examining and one for selling.
''The categories in some cases are archaic; there should be some flexibility,'' said City Manager John Flint.
Cities also can't keep pace with technology, Flint said. The Internet and cell phones weren't around when the current categories were established, forcing cities to put them in categories where they may be paying too much or too little.
''It isn't so much to raise fees as it is to come up with contemporary categories and provide equity in the tax structure,'' Flint said.
Boca Raton wants the state law changed as well.
''The city wants the flexibility of determining what the local tax rates should be,'' said Neil Evangelista, spokesman for the city.
The state shouldn't fear that cities would use the occupational license to make money, Weston officials said.
''Elected officials in cities will have to take the heat for what they do,'' Hersh said.
During the fiscal year that ended Sept. 30, the city collected $211,188 in fees from the occupational license tax. The revenue was part of the city's $23 million general spending budget. The city projects receiving $288,835 during the current fiscal year to help finance its $24.4 million general spending budget.
The city's 15-page occupational license law includes fees such as $150 a year for an auto washing business; $157 for a gas station but $262 if it has a mini-mart and another $262 if it provides repairs; $150 for a copy center or diaper service; $150 for any type of building contractor; $150 for a private school; $150 for a riding academy; and $150 for an insurance agency, plus $63 for each agent.
Some merchants pay the tax based on square footage, while other cities have flat rates or base it on inventory.
In Weston, the amount ranges from $150 for a building of up to 1,250 square feet, to $2,150 for more than 100,000 square feet.
Publix Supermarkets, one of Weston's largest businesses, paid $7,250 for its four stores in the city during the fiscal year that ended Sept. 30.
