Sylva may raise fees for privilege licenses

By Lynn Hotaling

Changes to Sylva's tax ordinances will be discussed during a public hearing set for Thursday, March 15, at 6 p.m. That hearing will be followed by a special meeting to act on the license proposals and consider other business.

The town's business license ordinance is "outdated and confusing," said Lynn Allen, Sylva's tax collector. The intent of the changes is to clarify the ordinance and bring it in line with state fee schedules, she said.

In most cases, the fees the town of Sylva can charge for privilege licenses are regulated by state government, Allen said. Certain businesses, such as banks and professional offices, are exempted from fees by state statutes.

Many businesses in Sylva purchase licenses under the miscellaneous category, Allen said. Those business owners will see a $10 increase next year, from $25 to $35, if the new rates are approved.

Another significant change will affect all contractors and subcontractors doing business in Sylva, Allen said. Beginning July 1, town officials will collect a state-mandated charge of $10 from anyone who does contract work within the city limits, she said.

Contractors have not paid the annual fees in the past, Allen said, because Sylva had no way to monitor those who contracted in town; however, now that Sylva has a zoning ordinance, contractors are required to obtain town building permits.

Most privilege licenses run from July 1-June 30, and fees are due July 1, Allen said. Though the town has not charged interest in the past, interest will be charged this year beginning July 2. The maximum amount of interest the state will allow the town to charge is 25 percent of the cost of the license, she said.

The minimum late fee assessed will be $5, and that amount will be charged to anyone who is late with their payment, Allen said. The town plans to mail bills for license renewal by May 1, she said.

State officials have mandated a change in the way restaurants will be charged, Allen said. In the past restaurants have been assessed $1 per seat. Under new regulations, eating establishments with less than five seats will pay $25, while those with five or more seats will pay $42.50. This change will result in a decrease in fees for some restaurants, Allen said.

However, eateries selling beer and wine will be assessed an additional annual charge of $15 to dispense malt beverages and $15 to serve wine. The charge for a license for off-premises sales of beer and wine will be $10 each, Allen said. Licenses for beer and wine sales run from May 1 through April 30, Allen said.

If the proposed changes are approved by the town board, businesses that sell beer and wine will be required to purchase the additional license prior to May 1 of this year, said Sylva administrator Tommy Thompson.

Sylva officials also propose implementing several additional fees. Hospitals and nursing homes will be assessed $200; wholesalers and manufacturers will be charged $100; and temporary hiring agencies will pay $50, Allen said.

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