ORANGE : Resident Takes Issue With Business Fee

A local accountant told the City Council last week that the city is losing untold thousands of dollars by failing to collect fees from people who conduct business from their homes.

“The city is losing tremendous revenues,” said resident Marilla C. Hamor, who works from her home.

But city officials say recent budget cutbacks have stripped their department of the staff needed to collect license fees from home businesses.

“We try to monitor as best we can, but we can’t go door to door,” said Patrick J. Griffin, city revenue manager. “What we can do is make sure their home businesses conform to neighborhoods codes. We aren’t going to allow any to open a metal shop in their garage.”

The city currently takes in about $1.6 million annually in business license fees.

Home businesses pay the city a fee based on a sliding scale. For example, those earning $20,000 and less annually must pay the city $35 in business license fees, while those taking in between $60,001 and $100,000 must pay $80.

Hamor also told the council last week that its business license fee violates the privacy of business people by requiring them to report their annual gross income. Hamor contended the information is unnecessary since the form already asks businesses to disclose their range of earnings.

“I personally don’t want my gross receipts floating around the city,” she said. “I won’t report it.”

Griffin said gross receipts are needed in case the city has to conduct an audit.

Hamor will meet with Griffin and the city attorney later this month about possibly revamping the business license form.