BARRHEAD – The Town of Barrhead is looking into its business licence fee structure.
On Feb. 22, councillors instructed administration to draft a potential new Business License Bylaw tailored after the Town of Westlock's, where new businesses that apply for a business licence after Oct. 1 are essentially given three extra months at no charge.
Chief administrative officer Edward LeBlanc said he decided to see if councillors had an appetite to change the municipality's business licence fee schedule in part due to feedback they were getting from business owners.
Currently, the town has a multi-tiered system where residents who own businesses are charged $125 annually compared to $250 for non-residents. The fee for home-based businesses is $175.
Other business licence categories include a temporary business at $50 a week, a food vending unit licence at $125 annually and one for a general contractor at $500 annually. The town also has a category for hawkers, peddlers and door-to-door sales at $75 a week.
In 2021, business licences generated $37,350 in revenue.
Mayor Dave McKenzie said he preferred a non-tiered approach, saying there should be only one fee for residential, non-residential and home-based businesses. He then asked for the rationale behind the tiered system.
LeBlanc said he did not know the history behind the system but noted it is common for municipalities to have different business licence fees for residents and non-residents.
Coun. Dausen Kluin asked if administration or previous councils ever considered giving a substantial discount or waiving the business licence fee entirely for new businesses.
"It's a good suggestion, and if council wants us to explore that, we can definitely do some research," LeBlanc replied.
McKenzie did not favour going that route, saying it added yet another tier.
"What I would suggest is to go to a flat rate," he said. "A business is a business whether they live in or out of town it shouldn't be a factor in what the fee should be."
He also suggested the town should have a temporary food vendor licence.
"Sometimes we have these events, where we invite these food trucks to come in, but it is just for the day, and we may never see them again," McKenzie said. "It isn't fair to have them have to pay for a business licence for the entire year."
Legislative services and development director Cheryl Callihoo said any type of temporary business, including food vendors, qualified for the $50 weekly rate.
Coun. Ty Assaf asked if community organizations need a business licence when they host events such as the Barrhead Agricultural Society's Blue Heron Fair Days or one of the Main Street festivals.
"We have never charged the ag or one of the other societies that host these events because they are non-profit," Callihoo said. "If a vendor came to town, specifically for profit, then we would charge them."
Coun. Dave Sawatzky said he favoured what the Town of Westlock was doing.
"After Oct. 1, it is rolled into the next year, so the new business feels good that they are getting something, but the (municipality) is not forgoing any real revenue or discounting a business licence, keeping it fair for everyone."
