BERLIN – Town officials agreed to double the business license fee and explore creation of a trader’s license for companies doing business in Berlin.
The Berlin Town Council voted 4-1 this week to double the business license fee from $75 to $150. While the rate will be the same for all businesses this year, staff are expected to explore a new rate structure based on either location or type of business going forward. They also instructed staff to begin laying the groundwork for establishing a trader’s license, which is already in place in many towns.
“They expect it,” Councilman Steve Green said. “I think it’s a missed opportunity to help offset some expenses.”
Last month, officials talked about plans to double the business license fee, which hasn’t been increased since it was created more than a decade ago. Councilman Dean Burrell, however, suggested staff consider different rates based on location. He indicated businesses on Main Street, for example, should be charged more than businesses on Old Ocean City Boulevard.
On Monday, Ivy Wells, the town’s economic and community development director, said she’d met with Mayor Zack Tyndall and Town Administrator Mary Bohlen regarding Burrell’s suggestion.
“We came to the conclusion that it’s a little too soon for this year to be able to construct an entire business license structure based on, whether it’s location or type of business,” she said. “It was recommended we follow through with the motion presented last meeting.”
Councilman Jack Orris asked why the proposed motion called for a $150 fee for most businesses but a $300 fee for financial institutions. Bohlen said financial institutions had historically been charged double.
“I think it should be a level playing field,” Tyndall said.
Orris also asked if the town should consider creating a trader’s license.
Bohlen pointed out that if Berlin did require a trader’s license, it would be difficult to track whether companies doing business in town had them or not. Staff added that the town’s code stipulated that business licenses were for businesses that had physical locations in town. In order to establish a trader’s license the town would need to amend the code.
Returning to the issue of the business license, Burrell said if financial institutions had long been charged double he didn’t see why that should change now.
The council voted 4-1, with Burrell opposed, to set the business license fee at $150 for all businesses. Tyndall said staff would begin exploring language for a code amendment that would allow for creation of a trader’s license.
