Business owners could end up owing anywhere from $50 to $1,600 annually, that figure based primarily on the number of hours worked annually, if the Douglas County Board of Commissioners approves a new business license tax.

In view of financial challenges the county faces, officials are proposing the tax for the seventh time in 25 years.

"Fair, equitable and simple were the most important factors considered," said Lisa Granahan, assistant to Douglas County Manager Dan Holler. "It was pretty well thought out."

Assistant County Manager Michael Brown said he has no idea what the additional revenues could add up to, but estimates the yearly total between $600,000 and $800,000, potential revenue stream used to support the general fund.

"Staff is hoping for clear direction from the board (of commissioners) in March," Brown said. "The commission won't know how much to charge, so we've put together a fee schedule to give them a starting point."

If approved as written, businesses will pay a base fee of $50, plus a predetermined amount based on the number of full-time equivalents, or hours worked annually divided by 2080.

For example, a business with 1,000 full-time equivalents or more will pay an additional $1,550, that scale sliding down for smaller businesses that will pay nothing for up to four full-time equivalents, after the $50 base fee.

A one-time application fee of $25 will also apply.

The proposal takes all types of businesses into consideration, everything from home businesses that pay the $50 base fee, to independent contractors like real estate agents or pet groomers, who pay $40 annually. Public utilities are exempt if they are paying either franchise or utility operator fees and charitable organizations must only pay the $25 application fee.

The fees are reasonable, but penalties stiff, said Lisa Granahan, assistant to County Manager Dan Holler.

"The fees double if they're not paid on time," she said.

Estimates put the costs for administration between $7,500 and $20,000 annually. Purchase of the software, a one-time fee, is expected to cost about $25,000.

The revenues are unrestricted and could be used for basic services, including anything from the sheriff's office and courts to the clerk, assessor or recorder, according to county staff.

In addition to shoring up Douglas County's sagging budget, the applications submitted would provide emergency responders, like fire and sheriff personnel, vital information concerning ammunition, hazardous materials, or anything posing a threat to public safety.

"Right now, we have very limited information about who is operating in the county and what they are doing," Brown said.

The fact that Douglas County does not have a business license fosters the potential for attracting businesses that aren't up to par, said Capt. Mike Biaggini of the Douglas County Sheriff's office.

For example, a local church complained about fumes coming from Industrial Way and when deputies investigated, the only thing left in the building were a number of volatile chemicals, he said.

"If those chemicals had mixed together they could have flattened the industrial area," he said.

When investigating businesses, firefighters and police often don't know what they're walking into and that isn't good for them or the community, said Clerk-Treasurer Barbara Griffin.

"My concern is for the health, welfare and safety of this community" she said.

A complete list of businesses could also be useful for economic development and ultimately the creation of a health department, which would provide inspections for restaurants and other health-related services, according to county staff.

Granahan said staff looked at business license taxes in neighboring counties to determine what would be best for Douglas County.

For example, Carson City pays a fee based on the type of business and additional fees based on the number of employees and square footage of commercial space. Under that formula, Casino Fandango paid about $2,200 a year in 2007.

Lyon County businesses pay a fee based on the number of employees and in Dayton, a casino named Terrible's, pays $600 a year with its 71 employees. John Ascuaga's Nugget pays its business fees based on gross revenues and in 2007, that came to $52,400.

"This county is no longer small nor rural. We've grown up," Griffin said. "And county staff has done their best to keep the fees low."

The proposal will go to the Douglas County Board of Commissioners for consideration at their regular meeting, 1:30 p.m. Thursday at the Douglas County Administration Building, 1616 Eighth St. in Minden.



Susie Vasquez can be reached at svasquez@recordcourier.com or 782-5121, ext. 211.