Proposed fee irks Indy small businesses

INDIANAPOLIS (WISH) - The City County Council will take up a measure at its next meeting to increase business licensing fees.

During a meeting of the Rules and Public Policy Committee Tuesday night, Rick Powers, the Director of the Department of Code Enforcement (DCE), shared a Power Point presentation that outlined the reasons his department is asking for a fee increase.

Under the proposal, a total of 27 businesses will be affected. The businesses include everything from massage parlors, to taxi cab companies, to kennels.

Powers says the current business license fee schedule is antiquated. In some cases, fees have not been increased for decades and the current income generated from the fees does not cover the department's operating costs.

Code enforcement is a "user fee" supported department and the "users" are businesses.

Powers says if the recommended fee increase doesn't pass, "Then we would have to re-evaluate what services we can provide to the community."

Jeff McKinney, owner of Tail Waggers Playhouse, a doggy daycare facility on the west side, isn't happy with the proposal.

"I just think it's unfair. I pay my taxes, I have four employees. I'm a small business. I'm trying to survive," said McKinney.

For the past five years, McKinney has paid an annual licensing fee of $25. Under the new proposal, the fee will be $200, an 800 percent increase.

McKinney questions why he should pay more for the same service.

"Animal control comes out, they inspect the building, make sure everything is fine. They take our $25. It's good for the whole year. I understand it could go up a little bit but I think it's kind of ridiculous to slap the small business. I'm very puzzled by the big jump," he said.

DCE says the proposed fee increase for McKinney's doggy daycare was determined by the specific expenses the department incurs when dealing with the business.

"Cost is determined by the number of resources it takes to inspect or review an application. We are not going to charge anyone more than it costs us to administer the law" said Powers.

The proposal has the backing of more than a dozen organizations including several neighborhood associations, IMPD and Indianapolis Downtown, Inc.

The full council will take up the measure at the its next meeting.