For a long time, the city of Butler has needed new ideas for trying to attract businesses.

The city’s 7-mill business privilege tax on gross receipts, the highest in the state, remains an impediment to new businesses opening, or existing businessses relocating, within the city’s borders.

But a new proposal announced last week could entice business interest that otherwise might never evolve. There would be no harm in trying it, and it might have benefits for businesses already operating in the city.

The proposal, introduced to the city council last Tuesday by Butler Downtown’s Economic Restructuring Committee, would exempt new businesses from paying the city’s business privilege and mercantile taxes for three years and allow them to pay only 50 percent of their tax obligation for the following two years.

While some businesses already operating in the city might not be happy about the plan’s details, considering that they would continue to pay their taxes at the existing rates, they could benefit from additional customer traffic generated by the new entities.

In addition to businesses attracted to the city after final approval of the plan — if that is forthcoming — the tax-paying exemption would cover businesses that have opened since Jan. 1, 2010.

The new plan is much more attractive than the city’s current lackluster provisions directed toward new businesses — 50 percent of tax payments exempted the first year and 25 percent exempted the second year, with full payments thereafter.

“We’re looking for that carrot to put at the end of the stick to bring businesses downtown,” said Tom Graham, of Butler Downtown’s business privilege tax subcommittee.

The group’s ultimate goal is reduction of the business privilege levy for all businesses.

In putting forth the subcommittee’s plan, Graham, who owns Frames & Pixels on West North Street, noted the challenges businesses face during their first three years of operation, especially if they’re a business opening for the first time.

But tax abatements have a downside that was acknowledged at the council meeting — that businesses, once their tax abatements end, might opt to move elsewhere, to a friendlier tax climate.

While that concern is legitimate, it also must be acknowledged that there is a cost in relocating that could be prohibitive when stacked against the taxes in question. There’s also the issue of whether customers would follow a business to its new location.

The main point now is that a significant attempt has evolved to try to increase the city’s menu of businesses. Officials must be encouraged to consider and refine the basic plan introduced last week as needed, to make it the most effective that it can be.

For example, the city could initially designate the abatement plan for a specific trial period with consideration later for making it permanent.

There’s some financial risk in the city adopting the plan, but getting the cold shoulder from potential new and relocating businesses is an even worse prospect.

The city council should set aside time to listen to comments from local merchants and residents before planning official action on what’s been presented.

However, the plan seems to be an encouraging, workable magnet for bolstering the business community’s best interests.