Cabot City Council on Thursday discussed a proposed plan to levy a business fee for permanent and temporary businesses which operate within the city.
“The City Council shall have the power to enact an ordinance requiring any person, individual or corporation who shall engage in, carry on, or follow any trade, business, profession, vocation, or calling within the corporate limits of the city to pay a license fee,” reads the proposed ordinance.
The free would cover a sole proprietor, who is someone who owns an unincorporated business by himself or herself. “However, if you are the sole member of a domestic limited liability company, you are not a sole proprietor if you elect to treat [it] as a corporation,” according to the proposal.
The ordinance also would cover employees. For the purpose of business license fees in the City of Cabot, an employee is defined as: any person employed at any business enterprise that performs any part of their duties within the City, except casual laborers not employed in the usual course of business. “A sole proprietor is not an ‘employee’. All officers, agents, dealers, franchises, etc., of a corporation or
business trust, and all but one partner of a partnership are ‘employees’ within this definition’,” adds the proposal.
Professions also would be covered. “For the purpose of this ordinance a profession is considered any type of occupation, practice, or vocation requiring skills through formal education or practical experience. “
In addition, booth renters also would be covered. “A booth renter is someone who leases space from an existing business and operates their own business as an independent contractor. Therefore, for the purposes of this ordinance is considered a ‘Sole Proprietor’,” continues the ordinance.’
Temporary businesses also would be covered. For purposes of the ordinance, a “temporary business” is defined as a freestanding business operation in a temporary structure, portable building, trailer or tent for seasonal or short-term operation. It is further defined as having no permanent municipal water and wastewater services.
Portable commercial businesses also would be required to pay the tax. A portable commercial business/building is defined as a building on wheels or skids that is not permanently affixed to a foundation that is being used for commercial purposes.
Prior to establishing any temporary business within the city limits of Cabot, the applicant will submit a sketch plan to the City of Cabot Public Works Department. “This plan must show the exact location of the proposed temporary business establishment including the setbacks from the streets or highway right of ways. The sketch plan must clearly identify any open display area(s) and show the parking spaces to be dedicated by the owner of the property for use by this temporary business,” continues the ordinance.
In addition to the sketch plan, the applicant would submit a letter from the property owner(s) stating that they are in agreement with the sketch plan. “The applicant must provide proof of Federal Tax Employer Identification and State Sales Tax Numbers if applicable. The applicant must be licensed and bonded and present proof thereof.”