The necessity for a business licence is clear 鈥� it helps ensure a business is legitimate, qualified and properly situated in a municipality. It鈥檚 not so clear why an established business should have to renew its licence each year.
Langford鈥檚 city council has decided to clear up that picture by implementing a perpetual business licence. Beginning next year, Langford business owners will be asked to pay once for a business licence that will remain in effect until a business makes a substantial change, such as its location.
Mayor Stew Young said renewing business licences each year is an unnecessary bureaucratic shuffle.
鈥淵ou鈥檙e already in business,鈥� he said. 鈥淵ou own your building. You鈥檙e in business for 10, 20 or 30 years and then you have to apply to a city for a business licence every year? I鈥檓 going: 鈥榃hy are we doing this?鈥� 鈥�
There isn鈥檛 much justification for annual renewal of business licences, other than it provides revenue for the issuing municipality. While open to considering following Langford鈥檚 example, Saanich Mayor Frank Leonard says the annual renewal gives a municipality the opportunity to ensure a business is operating within regulations.
Renewals are seldom, if ever, accompanied by an inspection, and a municipality always has the option of suspending a licence if a business is deemed to be breaking the rules. Businesses already pay taxes higher than the residential rate. Even though it鈥檚 a time-honoured tradition with most municipalities, business-licence renewal amounts to little more than a cash grab.
Langford is doing the right thing. Other municipalities should take note.
