Title
Proposed amendment to rescind Bylaw 2014-09 for the Licensing and Regulation of Businesses within Parkland County; and Bylaw 2015-25 for the amendment of Business License Fees
Proposed Motion
That the Committee of the Whole receive the review on Business Licensing as information.
Body
Purpose
The purpose of this report is to review the need for a business license to conduct business activities in Parkland County.
Summary
The Business Licensing Bylaw regulates and monitors business activities in Parkland County. The County currently has approximately 3,045 unique businesses, of which 1,236 employ at least one person other than the owner operating in Parkland County (Economic Development and Tourism Strategic Plan 2014-2018). County records indicate that in 2014 there were 606 Resident business license holders, 347 Tri-municipal license holders, and 552 Non-resident license holders for a total of 1505 businesses holding a County license. In 2015, the County records indicate there are presently 612 Resident business license holders, 371 Tri-municipal business license holders, and 616 Non-resident business license holders. It has come to the County's attention that the estimated number of Resident business license holders and actual Resident business license holders is quite different. One of the reasons for the difference is that the County does not have an active enforcement, and monitoring system in place. The County currently does not have the resources to actively seek out or enforce the Business Licensing Bylaw. The general practice has been that when applicants come into Planning and Development Services for a development permit or a building permit the applicant is made aware of the requirements for a business license. The applications are then processed together. At time of renewal, Planning and Development Services mail out renewal letters. There is limited follow-up and no enforcement or monitoring action taken to investigate if the business is still operating in the County.
The Business Directory, located on the County's web page, is also not currently monitored or maintained by County staff. New business licenses are added to the directory, but are not maintained or changed to coincide with business activities. The information in the system is therefore not accurate and has limited use by the Economic Development and Tourism Department.
Earlier this spring, Administration presented the topic of business licensing to the Economic Development and Tourism Advisory Committee (EDTAC). The recommendation and approach that was supported by the Committee was for the Business Licensing Bylaw to be repealed. If this were to be approved by Council, local businesses would not require a business license to operate in Parkland County. EDTAC also made the suggestion that the County could still require a one-time payment for registering the business into a new business directory. Economic Development staff would maintain and update the new Business Directory as part of the business visitation program.
In the past 5 years, the County has collected, on average $90,000 per year from the business licensing program. The financial impact to the 2016 budget for repealing the business license would, therefore, be approximately $90,000 per year, on an on-going basis. One potential option to reduce the financial impact would be to still require out-of-County businesses to obtain a business license when they apply for a development permit. The premise for this is that many of these business do not pay taxes in Parkland County. The financial impact under this scenario could reduce the revenues to $35,000, as opposed to $90,000, if the fee were to only apply to non-resident businesses doing work in Parkland County for a net annual reduction of $55,000. The recommendation to introduce a one-time Business Directory fee for resident businesses is estimated to generate $1,200 each year. The fee would be a nominal fee used to update the directory.
Repealing the Business Licensing Bylaw does not eliminate the requirement for businesses to obtain a development permit under the requirements of the Land Use Bylaw. Development permits are required when there is change in use. The development permit ensures the regulations controlling permitted or discretionary uses are adhered to pursuant to the Land Use Bylaw.
The Counties of Sturgeon, Strathcona, and Leduc do not have a Business License requirement in their municipalities.
Strategic Plan/Policy/Legal/Staff Implications
Parkland County Strategic Plan 2016-2020: 1) Create a diversified economy; 2) Develop efficient, effective, customer oriented development approval processes; and 3) Diversify and increase quality employment opportunities.
Parkland Economic Development and Tourism Strategy (2014-2018): Enhancing Rural Business Environment
Financial Impact:
Cost: $90,000
Source of Funding: Loss of direct revenue from Business Licensing