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Brighton proposes removing small telephone tax, vendor-fee credit and clarifying use-tax practice
Summary
Staff recommended removing an antiquated $4-per-line telephone occupation tax and the vendor-fee credit, clarifying use-tax treatment for permits (moving the 50% estimate into policy), and adding licensing updates including massage-business background checks.
Revenue staff proposed a package of tax and licensing code updates at the Oct. 14 study session designed to streamline administration and align with practice and state law. Revenue manager Anna Liskozik explained the vendor fee credit (a small deduction for businesses that file and pay online) could be removed because its fiscal impact is minimal and it creates administrative burdens. She said: "This credit allows taxpayers that file and pay electronically and on time to deduct a maximum of $25 per return." Staff recommended removing that credit and capturing the full sales tax due.
On use tax, staff explained the city currently charges an estimated 50% of project valuation at permit issuance and reconciles to the actual material cost later. Liskozik proposed moving the 50% estimate out of code and into policy so it can be adjusted based on audit findings, but said there is no immediate plan to change the percentage. She noted the telephone utility company occupation tax (a $4-per-line annual charge producing under $2,000 a year) is outdated and cannot be paid online, recommending its removal.
Licensing changes would move some items into the business-licensing section, remove a separate kennel license (requiring instead a business license plus state credentials) and add criminal-background-check requirements for massage businesses to comply with new state law; owners or employees would pay for fingerprint checks.
Council asked follow-up questions about reconciliation practices, audits and enforcement for mobile vendors; staff said more audits will help refine the use-tax estimate and that code enforcement and PD review licensing applications such as massage licenses.
