Princeton City Leaders Addressing Proposed Ordinances Including Reduction In B&O Tax


City leaders in Princeton will be addressing proposed ordinances.  One of those ordinances will impact the business and occupation tax.
President and Founder of the Bronze Look LLC, Randolph Evans said business has been slow but steady.

Evans said, “I do think people need to come downtown and support small businesses and understand that it’s a struggle right now for everyone.”

Officials in Princeton are looking to reduce the business and occupation tax.  If the proposed ordinance passes, it would reduce the rate from .5% to .35%.

City Manager Kenneth Clay said the reduction ordinance is a step required under the home rule plan.

Clay said, “We’ve already taken the first step which is to implement effective July 1, 2017 a 1% sales tax but a part of that was a requirement under the city’s home rule plan to reduce the B&O tax on businesses.”

City leaders believe the proposed tax reduction will be beneficial to existing businesses and also encourage new businesses.

Evans said he likes the idea of the B&O tax being lowered but said he doesn’t think it’s being lowered enough to compensate for the rise in consumer tax.

Evans said, “It’s going to drive more people to shop online and that’s why we have a technology center and we sell online to people from out of state and they’re exempt from sales tax.  People like to buy online now days.”

There will be a second reading and public hearing on February 13, 2017 at 6:30 p.m. on the proposed ordinance.

The other 2 proposed ordinances are increasing building permit fees, and deleting a provision in the traffic code that would eliminate the police chief’s traffic control file.  If passed, that would be handled by the city council.  If the B&O tax reduction passes, it will go into effect on July 1, 2017.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories