WEST PLAINS, Mo. (KY3) – Owning a business in the city of West Plains just got a whole lot easier: most businesses are no longer required to have a city business license to operate.
This new ordinance was passed in December, and at the turn of the year, it went into effect.
City Administrator Sam Anselm says the clerk’s office was using up precious time and resources getting businesses to renew their licenses, and the information they gathered during the process was already available at the state level.
Not only will this give the city more time for business audits and other city duties, but it will also make it easier for new businesses to start up.
“(A mentor) said, ‘Make sure that as a professional or as an administrator or city manager,’” said Anselm. “‘You’re doing what you can to cut red tape, not necessarily cut red ribbons.’ I’ve taken that advice to heart, and so I work with our directors and our departments to find those opportunities to really reduce that red tape and make it easier for businesses and for residents to do business with the city.”
The business licenses would cost an entrepreneur $30 annually, adding up to about $50,000 to $75,000 annually. Leaders aren’t worried about losing that revenue.
“If we can make sure that our retail businesses, especially, are staying in compliance,” said Anselm, “they’re collecting sales tax from customers. If we can free up the city clerk’s time so that she’s not trying to chase down people to get a $30 business license renewed every year, if she can go and audit the businesses—especially the retail businesses—to make sure they are collecting sales taxes and them remitting those to the state, we think we’ll more than make up the revenue on that side.”
This isn’t a complete removal of restrictions on the city level. Businesses are still required to get an occupancy safety inspection for physical locations.
“Most communities in Missouri rely on sales taxes,” Anselm said. “That’s what we use to provide police and fire and general parks and recreation services. A lot of that is all provided through general fund revenue, and sales taxes are certainly our biggest component of revenue that we receive.”
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