During a recent government meeting, council members discussed potential changes to the Business and Occupation (B&O) retailing gross receipts tax cap, weighing options that could significantly impact local businesses and municipal revenue.

The primary focus was on two proposals: raising the maximum retailing gross receipts tax cap to $25 million or $100 million. The current cap stands at $20 million. If the cap were increased to $25 million, businesses exceeding this threshold would be taxed on their total gross receipts, generating an estimated additional revenue of $370,000. In contrast, if the cap remained at $20 million, businesses would only be taxed on the first $20 million of their gross receipts.

Council members expressed concerns about the implications of these changes, particularly for smaller businesses. Councilwoman Trotner highlighted that raising the cap to $100 million would primarily affect larger national retailers, while the proposed increase to $25 million could impact around 16 local businesses that currently benefit from the existing cap.

Council member Boyce indicated a preference for a more cautious approach, suggesting that option D, which would raise the cap to $25 million, might be more prudent than option E, which would push it to $100 million. The discussion revealed a divide among council members, with some advocating for the higher cap to align with neighboring jurisdictions that do not impose such limits.

Additionally, the council explored the possibility of using the increased B&O tax revenue to fund additional police officer positions. The estimated cost for hiring one officer is approximately $190,000 annually, which includes salaries, benefits, and necessary equipment. Council members debated the merits of this funding strategy, considering the potential trade-offs with other budgetary needs.

As the council continues to deliberate, the decisions made regarding the B&O tax cap could have lasting effects on local businesses and public safety funding in the community.