Artesia : Business License Fees Cut After Objections by Firms

The Artesia City Council and the business community have made peace with a new business license tax ordinance, tentatively approved by the council, that places caps on the total tax paid by each business. The measure also significantly reduces the base tax, which is tied to gross receipts.

The new ordinance, which is slated for final passage Dec. 9, replaces a measure passed a year ago and labeled excessive by some businesses. According to the city, Pioneer Hospital, Artesia’s largest employer, complained that its tax would have exceeded $120,000 based on gross income.

In all, more than 20 business entities, most of them doctors, dentists and other professionals, objected to the tax. Though a year old, it only became an issue in September when tax bills were mailed out. The tax ordinance was revised in discussions between business representatives and a council committee.

“We had failed to think about how much some of these businesses made, and some fees were too high,” City Manager Paul Philips said.

The measure places a $5,000 cap on the basic business license fee regardless of income. It also establishes flat fees for Pioneer Hospital and two other large medical concerns. The hospital and Mullikin Medical Center will pay $7,500 each, while dentist Dr. Donald M. Brown will pay $3,500.

The basic license fee also was lowered in the new measure. It ranges from $55 for up to $14,999 in gross annual receipts to $303 in the $120,000 to $149,999 category. For receipts above that amount, there is a $50 fee for each $100,000.