Taxation without representation?

Milking business owners who can’t vote officials out of office isn’t right.

Posted 7/25/19

Business community leaders say local regulations and taxes make it difficult to operate profitably here.

Lexington natives Otis Rawl and Ted Pitts are leading a drive to reform business license …

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Taxation without representation?

Milking business owners who can’t vote officials out of office isn’t right.

Posted

Business community leaders say local regulations and taxes make it difficult to operate profitably here.

Lexington natives Otis Rawl and Ted Pitts are leading a drive to reform business license taxes they say overwhelm and discourage many business owners.

Greater Lexington Chamber President Otis Rawl wants business license taxes repealed.

That probably isn’t going to happen because the tax brings in 50% of the town’s revenue.

It has allowed the town council to avoid raising taxes on home owners for 29 years.

Home owners live in town and can vote the mayor and council out of office. Many business owners don’t live in town and can’t vote in local elections.

They call this taxation without representation, the cause that led to the American Revolution against the British crown.

The license tax hasn’t discouraged 226 businesses the mayor said opened here this year.

If the tax can’t be done away with, the chamber proposes:

• Streamlining registration and payment of taxes.

• Minimum thresholds before a business is required to obtain a business license.

• A maximum amount any business must pay.

At the state chamber, President Ted Pitts and most of the county delegation propose:

• Taxing profits rather than all sales revenue. Business costs, wages, dividends, royalties and other taxes are deductible which makes the taxable income closer to net profits.

• Taxes for manufacturers is based on local sales only.

• Small businesses in multiple locations can pay a delivery license tax of not more than $100 instead of a business license tax.

• Local officials continue to set rates. Existing laws apply.

• Taxpayers can appeal with time for officials to respond.

• Taxpayers’ data is competitive and held in confidence.

These sound sensible to us as business license taxpayers.

We understand the town’s concern for lost revenue but milking business owners who can’t vote isn’t right.

– Jerry Bellune

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