Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Permits And Taxes topic
No spam. Unsubscribe anytime.
Committee advances bill to let municipalities deny permits to companies tied to local tax delinquencies
Summary
House Bill 316 was reported as amended 19-7; the bill would allow local governments to deny permits to an LLC or company when the entity or a principal has delinquent taxes in the municipality. A technical amendment replaced the term "corporation" with "company."
The Housing & Community Development Committee reported House Bill 316 as amended by a 19-7 vote. Sponsors said the measure gives municipalities authority to deny permits not only when an LLC or corporation is delinquent on local taxes, but also when a principal of the entity is delinquent on taxes in that municipality.
The bill’s sponsor described a common practice in which individuals use limited liability companies to apply for local permits while principals remain delinquent on municipal taxes. "An LLC can apply for permits and the municipality may be forced to issue the permits even if one of the principal owners of the LLC is delinquent in their taxes," the sponsor said, and the bill would allow local governments to deny permits in those circumstances.
The committee adopted Amendment 89, a technical amendment that replaces the word "corporation" with "company" in references to LLCs; the amendment was described by staff and was supported unanimously in committee. Representative Irvin said he would support the bill and cited his experience as a former tax-claim director, noting the measure can prevent delinquent owners from expanding their portfolio while avoiding tax responsibilities. The bill was reported as amended 19-7.
The committee record did not include implementation dates or exemptions; the bill as discussed focuses on permit authority tied to local tax delinquency for entities and for principals of those entities.
