Airdrie business owners will see a $25 increase to licensing fees in 2020, following City council’s approval of a bylaw amendment at a regular meeting Dec. 2.
“Local business, both small and large, are very important to Airdrie’s economic well-being,” said Colleen Kinley, chief licensing officer. “Business licenses are issued under a number of different categories – home-based, commercial/industrial, non-resident and temporary/seasonal – and are approved and governed by bylaw.”
According to Kinley’s report, business license fees were last reviewed in 2005. These fees, she said, allow the municipality to gather specific data about local businesses, while providing benefits to business owners at the same time – such as inclusion in the City’s online business directory and opportunities to participate in surveys and provide feedback regarding the local business community.
Additionally, she said, municipalities depend on the business licensing process to ensure compliance with municipal, provincial and federal legislation, requiring that businesses have the proper permits and documentation prior to opening their doors.
“The processes surrounding licensing helps to ensure safety and compliance requirements to the local business,” she said. “Some institutions require a valid business license for other business start-up functions – to lease equipment, or for insurance purposes, et cetera.”
In 2020, the cost of a business license for an Airdrie resident will go up to $125 from $100, for both home-based and commercial/industrial businesses. According to Kinley, this fee represents approximately 70 per cent of the cost of issuing the license, with the other 30 per cent supported through general tax revenue. The cost was determined with the City’s strategic priority of fostering economic growth in mind, she noted.
“Staff recognize that keeping this fee at this $125 value helps to continue demonstrating City of Airdrie commitment to existing and new businesses,” Kinley said.
Non-resident business owners will see a larger increase, she added. This type of licensing includes businesses that do not have a physical base of operations within Airdrie, but conduct business within the boundaries of the municipality. The current fee of $200 will be increased to $350 in 2020.
“With this type of business not paying City taxes, increasing this fee to cover 100 per cent plus a surcharge is being recommended,” she said. “These businesses use City infrastructure, and this type of business license can help to share the cost of this infrastructure.”
For temporary or seasonal businesses, the fee will double from $50 to $100 in 2020. These businesses, according to Kinley, are typically in the construction, recreation or food industries, and operate within the City’s boundaries for a period of less than 72 hours or three days cumulatively.
“Consistent, transparent determination of fees builds trust within the community and ensures Airdrie residents are paying a fair share for services provided,” she said.
