Columbia City Council approves first reading of business fee reform proposal

Columbia, SC (WOLO) — It’s an issue Councilman Moe Baddourah has been pushing for over the last 4 years, and Tuesday night during the city council meeting it moved one step closer to becoming law.

Tuesday was the first reading of the Business Fee Reform, a proposal that would change tax exemptions for some of the business within city limits. According to Baddourah, if passed, businesses that have a 501(c) tax status from the IRS,  but otherwise operate as a profitable company would begin paying business license fees like the rest of the city’s businesses. Baddourah first made the proposal in 2015.

Charities and places of worship would remain exempt from business license fees.

Baddourah issued the following statement:

“After more than four years of fighting, I’m pleased the business fee reform plan has received first-reading approval. Columbia suffers from an extremely narrow tax base, and it’s a problem that impacts nearly every aspect of city government, and it means average taxpayers shoulder more than their fair share of the costs.”

Baddourah added that,

“One of our highest priorities should be expanding the tax base to better support essential services and help ease the cost burden on ordinary citizens. This business fee reform plan is a way to do that. It will mean better, more stable funding for vital services such as public safety. My hope is that it will provide the additional resources are police department so badly needs….It is also a matter of fairness. Those businesses that pay their fair share are put at a disadvantage when a competitor has a tax exemption.”

Under this plan charities in the city of Columbia, which also operate under a 501(c) tax exemption would not be impacted. According to Baddaourah, the proposal would only change taxes for businesses that are largely profitable companies that also use city services. Baddourah says he feels it’s not to much to ask for these business to help carry the burden of the cost of those services.

This measure will have to go through another reading, and public input before it can be voted into law. Stay with ABC Columbia News for updates as they become available.