Scarborough nixes business permit proposal

SCARBOROUGH — The Scarborough Finance Committee has backed off an idea to create a new general business license for all commercial entities in town.

The concept first cropped up June 19 when the committee reviewed a list of 64 businesses owing a combined $148,212 in personal property taxes, some with bills dating as far back as 1997. At that time, committee Chairwoman Judy Roy noted how some companies cannot get in a delinquent situation because the Town Council will not renew required licenses when bills are past due. However, while that keeps businesses needing an entertainment, liquor or food handler’s license up to date, othes have no such threat to worry about.

To remedy the situation, Roy proposed creating a general business license. It would have a nominal $25 fee, she said, later even suggesting $5, but would give businesses an incentive to stay up to date on taxes, since they could not do business without the permit.

“I’m not trying to persecute these folks,” said Roy at the Aug. 21 Finance Committee meeting. “I’m just trying to be fair to all the folks in Scarborough.”

“This is as much about fairness and equity for those taxpayers who are paying their bills, as they should be,” agreed Town Manager Tom Hall, noting that, despite some delinquencies, the town does manage to collect 98 percent of assessed personal property taxes on time from more than 1,400 businesses in town, even in cases where the town assessor has to set a dollar amount in the absence of disclosure forms. That, he said, nets the town $1.6 million per year.

“In fairness, we should really use every means possible to collect the remaining 2 percent,” said Hall.

At the Aug. 15 Town Council meeting, councilors agreed to write off $27,660 of the back-due personal property tax, still owed from businesses that have folded or left town.

Of 16 extant companies, several have begun making payments, either through a collection agency or via bankruptcy aggrements. Those payments have whittled nearly $7,000 off owed amounts in the last two months, said Hall, leaving “roughtly $79,000” stil due.

While Hall supported Roy’s goal, he said a business certificate might create “a legal mess,” given the administrative oversight required.

“It could be slippery slope,” he said. “It might be we’d be creating more headaches for ourselves than good.

“The most effective way is really personal contact,” said Hall. “That’s really what ends up with either the light bulb going off for us, where we realize there’s something up with their business, or we work out a payment plan.”

Roy agreed the dollar figures on the table were too low to make her business license idea worth pursuing. However, she vowed to remain vigilant, especially in light of the fact that at least one business in town, no longer in operation, refused to pay the tax for more than a decade.

“There are a lot of taxes I don’t agree with, but I still have to pay them,” said Roy.