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Business owner asks council to look at business license fees

HUMBOLDT — If an at-home business in Moose Jaw makes less than $50,000 per year, their annual business license will come to $25, while in Melfort it’s $100. For a hair stylist in Humboldt, it’s $375.
Business License

HUMBOLDT — If an at-home business in Moose Jaw makes less than $50,000 per year, their annual business license will come to $25, while in Melfort it’s $100. For a hair stylist in Humboldt, it’s $375.

This was a complaint brought before Humboldt council on Feb. 22 by Cindy Lee Frank, a resident hairstylist who has been operating out of her home since COVID-19.

In Humboldt, unlike with Moose Jaw, income doesn’t impact the license charge.

Michael Behiel, Humboldt’s mayor, said that the issue of the flat $375 business rate is something the city had begun looking into prior to Frank bringing her concern forward.

“We recognize there are a whole number of factors regarding that, and the current situation was put in place and the price was reinforced by the previous council, and I can tell you [that] being there on council, there was a lot of debate and discussion then,” he said.

“We went over some of the same things we’re going over again.”

Behiel said that while the process is in the “infancy stages,” he expects a policy change to begin within the next couple months.

“If a home-based business is only doing a couple thousand dollars of business a year, paying a $375 business fee is extremely prohibitive to them and is not fair, so we maybe need a staggered business license fee or try to make this more equitable to everybody.”

According to Behiel, the administration will examine other cities across the province to compare prices. 

Joining hairstylists at the $375 mark are accountants; bookkeepers; financial planners; ambulance services; barber shops; chiropractors; drugless practitioners; couriers; greenhouses; janitorial services and cleaners; landscapers; private clubs with liquor licenses; real estate agents; subcontractors/trades; taxi services; transient traders; and motorized food vending units.

General contractors pay $1,500; trade and craft shows pay $250; direct sellers pay $30; and music associations, tutor associations and schools pay $510.

Storefront and unclassified businesses are both charged $100.

Annual license fees decrease when purchased Sept. 1, with the exception of direct sellers, and trade and craft shows, which have consistent costs throughout the year.

This fee also covers the business’ addition to the City of Humboldt business directory.