JACKSON TWP — The controversial business privilege tax township supervisors called an “experiment” for 2019 is included in the proposed 2020 budget.

The tax first was enforced July 2019 and was originally introduced by the board of supervisors as a means to help fund its capital reserve fund and capital improvements planning. The tax charges $800 per year for businesses with more than $150,000 in gross revenue. Township officials anticipate collecting $93,000 from the tax in 2020 — $2,000 more than the $91,000 projected for this year.

Jay Grinnell, vice chairman for the board of supervisors, said the first-year experiment yielded positive results, bringing in $30,000 more than supervisors anticipated.

“It was just trying to compensate for expenses in the township because of the businesses,” Grinnell said. “Businesses bring additional traffic in, meaning additional road maintenance and police,” adding that township officials decided to continue the tax for 2020 based on its initial success.

However, not all business owners expected to pay the tax year after year.

Dennis Spirk, owner of Space Center Self Storage, argues that he recalled a supervisor saying the tax would be a one-off fee imposed only in 2019.

“They said it was just going to be one time, but I asked them to put it in writing, and they just gave blank stares,” Spirk said.

“Once they've imposed taxes, I've never known them to ever be reduced or repealed. I've never known it to happen anywhere.”

Chris Rearick, township manager, could not immediately be reached for comment Monday.

Sherry Cepek, owner of The Enchanted Olive, said she also recalled hearing the business privilege tax would be a one-time tax.

“There was no experiment,” she said. “That was an outright lie.”

During three board of supervisors meetings — in June, July and August — business owners aired frustrations with the tax, which they called unfair and discriminatory. Some said they had not been told of the tax until they received a bill in the mail.

“Everybody works off a budget. And working in business since 1972, we definitely have, or else we wouldn't be here today,” said Nancy Cravener, owner of Small Parts Machine. “It hurts when you get something like that. We're only four people, and it's hard.”

Of the $91,000 the township projects to see from the tax in 2019, officials predict $25,000 will come between September and December, well after the July 15 deadline. Cepek said the board told her it would be lenient in applying late fees and penalties in the first year, but added that she still was hit with the additional fines.

“As far as being lenient for the business tax in the first year, they weren't,” she said.

Grinnell agreed notification for the tax could have been handled better. On the other hand, he thinks businesses will now be able to properly budget for the tax once they get in a rhythm of paying it.

“It just didn't give people a lot of time to react, to budget for it,” he said. “Now that it's in place and people can expect it, regardless of their fiscal year, they know that it's coming and they can budget for it.”

Spirk said he plans on discussing the issue at future board of supervisors meetings, echoing his participation at the meetings in mid-2019.

“My guess is they'll never get rid of it,” he added. “When it's time next year, I'll be at a few of the meetings to remind them of what they said the first time around.”

Cepek, on the other hand, has become disillusioned at the thought of public participation with the board.

“I'm just so disappointed in the supervisors,” Cepek said. “I think the people around here realize nothing's going to happen if they speak up.”

Grinnell said he understands the frustration from business owners, but that the burden of increased road expenditures had to be borne by someone.

“We've been able to turn the township around and repair the roads and fix the infrastructure and get the township moving forward without raising taxes,” he said. “We don't like raising any taxes, but we're trying to place the burden on the proper shoulders.”