The Hermiston City Council voted to institute a business license requirement Monday night but tabled discussion on how much businesses would have to pay.
The council voted in favor of requiring businesses to have a license in order to operate but several objected to the actual fees proposed.
City Manager Byron Smith presented a proposed fee structure to the council based on the number of employees a business has and whether or not the business is located inside the city limits. The proposed fees would be broken down into three categories – businesses with five or fewer employees, those with six to 49 and those with 50-plus employees.
According to the fee structure presented to the council, a business with a permanent location inside the city limits with zero to 5 employees would pay a base fee of $85 a year.
A similar business with six to 49 employees would pay the base fee plus $15 for every employee over five. A similar-based business with 50 or more employees would pay $1,000 per year.
A business without a permanent location inside city limits with zero to 5 employees would pay a base fee of $100. A similar business with six to 49 employees would pay the base fee plus $20 per employee over five. A similar business with more than 50 employees would pay $1,200 per year.
Smith said violators would have to pay a penalty not to exceed $1,000 for each day they are in violation. The case would be handled in Hermiston Municipal Court and considered a violation and not a crime.
The council voted to begin requiring business licenses on Jan. 1, 2025.
Based on the fee structure presented on Monday, a small business inside the city limits with 49 employees would pay $745 annually. That amount is calculated by multiplying $15 times 44 employees (the first five employees are covered by the base fee), plus the base fee of $85.
Councilor Roy Barron said the difference between what both small businesses and much larger businesses would have to pay isn’t equitable.
“It feels a little arbitrary to me,” Barron said. “The bigger businesses can pay a little more of their share.”
Kristi Kopacz, owner of Sugar Shack in Hermiston, said she thought the fees were too high. She also worried that the fees will increase each year without a cap.
“That’s also a little scary as a business owner,” she said.
Smith said the fee structure is similar to Pendleton’s business license fees, only slightly lower.
Councilor Jackie Linton said one of her objections had to do with yard sales. The ordinance states that yard sales would be subject to a business license fee if individuals were to hold more than five yard sales per year.
“I don’t think that’s right,” Linton said. She said the city should send out letters to all businesses informing them of the new business license requirement and seek their input before settling on a final fee structure.
Councilor Roy Barron agreed.
“Since it won’t go into effect until 2025, I would like to have more time to talk about the fee structure and how we’re going to lay it out,” he said. “Right now, we can still have conversations with businesses and let them know this is going to happen and take more public comment.”
