Jackson should seek way to minimize tax on small businesses
An influx of business rarely is a bad thing.
As entities large and small set up shop in an area, they bring with them local and out-of-town customers spending their money, which ultimately benefits everyone in the community.
In Jackson Township, an increase in business has led to damage done to infrastructure by increased traffic. That led township leaders in January to implement an $800 business privilege tax as part of budget proceedings.
Township officials estimate the tax will generate between $60,000 and $63,000 annually. Those funds will be put into a $200,000 capital reserve fund to pay for road improvements, traffic lights and other infrastructure.
The fee didn’t seem to attract much attention until June, when business owners received the first $800 bill. Many flooded township meetings to voice their concerns.
Some said the fee is unfair to small businesses as they are being taxed at the same rate as larger entities.
Supervisors acknowledged this, adding state law has its “hands tied” to implement a flat tax for all business.
Others said they believed the tax only would serve to stop potential business from opening in the township. They asked why the tax wasn’t implemented on property owners, a plan that would lower the financial impact on everyone and still generate a significant amount of money.
Township officials, however, said residents already provide the lion’s share of generated tax revenue, and officials were trying to find a different way to address needs.
The idea of finding new revenue streams should be commended. So too should supervisors promise to work with business owners and the township’s tax collector to provide leniency during the first year of collecting the tax.
However, township officials perhaps should have considered a combination of new taxes that would be less impactful on small businesses.
Neither residents nor business owners should bear the full brunt of generating these funds. After all, both residents and business owners will benefit from the improved infrastructure. Some creativity could have gone a long way toward making the business privilege tax a little more palatable.
Additionally, the damage done to infrastructure didn’t happen overnight. The need for improvements has likely existed for some time, even if increased traffic has sped up that deterioration.
We urge township officials to find a way to minimize the impact the fee has on small businesses, and hope those business owners are able to weather the financial storm in the coming year.
— JWJ
