Westminster : License Tax Increase Postponed by Council

The City Council voted this week to postpone increases in business license taxes until at least May, when better estimates on the number of firms affected would be available.

Mayor Joy L. Neugebauer said Wednesday that the council needs more time to gauge the possible effects of raising fees and to determine how many businesses would be affected.

“I felt the information (available to the council) . . . was not definitive enough to estimate the amount of revenue it would generate,” Neugebauer said in explaining Tuesday night’s unanimous council vote favoring an eight-month delay.

All firms now pay a flat business tax of $50. Under the proposal, companies with six or more employees would be taxed an additional $5 per person, up to a $300 maximum charge.

Neugebauer said the proposal will be reconsidered in May or June when the council discusses its 1987-88 budget.

Last week, council members imposed a 5% tax on utility customers, which was expected to put an extra $2.5 million in city coffers. The utility tax takes effect Jan. 1. Those over 62 years of age or earning less than $12,000 a year may file for an exemption at City Hall.