- The Union City Commission voted unanimously to authorize the suspension, revocation or non-renewal of city-issued business licenses for businesses that fail to pay municipal taxes, fees or fines.
- Before taking action, the city must provide written notice, allow businesses to cure the delinquency or enter a payment agreement, and offer an appeal hearing before the City Commission.
- The ordinance is intended to strengthen the city’s ability to collect revenue, including occupational taxes—Union’s second-largest revenue source.
The City of Union has passed an ordinance allowing suspension, revocation, or denial of renewal of city-issued business licenses for entities that are delinquent on municipal financial obligations.
During the Union City Commission meeting on Monday, the legislative body held a second reading of an ordinance granting the city authority to deny renewal or to suspend a business license if a business fails to pay its required duties. The commissioners unanimously voted in favor, with each individual member expressing support for the measure.
“I’m 100% for it,” Union Commissioner George Eldridge said. “I think it’s too bad we didn’t have this a year ago.”
When reviewing Union’s budget, payroll tax collection is the second-largest source of revenue for the city, with an estimated $1.4 million expected to be collected before the 2024-2025 Fiscal Year. Property taxes are the largest source of revenue for Union on an annual basis.
These financial obligations include occupational taxes, real and tangible property taxes, franchise fees, code enforcement fines, license fees and other city-imposed charges.
Attorney Jeffrey Otis, who stood in for Union City Attorney Greg Voss, said the purpose of the ordinance was to strengthen the city’s ability to collect revenue while putting in another enforcement measure to ensure cities are actively staying up to date on meeting municipal obligations.
In effect, the ordinance creates a process of cross-collateralization, according to Otis, meaning that if a business falls behind on payments, they could risk losing their licenses issued by another city department until the debt is resolved.
“The city commission of the City of Union states that it is the purpose of this ordinance to establish a system of cross-collateralization for all city-issued licenses, permits, fees, taxes, assessments, liens, and other lawful charges owed to the City of Union by businesses, persons conducting businesses, or other responsible parties to remain current on all lawful municipal obligations,” Otis said.
The ordinance also provides due process protections for the city. Before Union can revoke or suspend any license, the city must provide written notice that details the delinquency, the amount owed, and the affected license.
Businesses also have the option to remedy the situation by entering into payment agreements with the city or appealing the decision to the city commission through a hearing process in which evidence and testimony may be presented.
“The most important thing about this is you’ve got to have proper notice to all parties,” Otis said. “Everyone gets an opportunity to say their piece.”
Union Mayor Larry Solomon said the city wanted to make it clear that businesses failing to pay city taxes could lose their licenses.
“I want you to make it perfectly clear that if they don’t pay their taxes, we have the ability to revoke their license,” Solomon said. “That’s a big responsibility. I am definitely for it.”
