Fayetteville Aggressively Pursues the Collection of Business License Fees

December 14, 2011

City officials have taken strong measures in their efforts to collect unpaid Fayetteville, NC business license fees from business license dodgers. After warning business owners about the city’s intention to take every step necessary in ensuring business license compliance, city officials seized the property of two local business license dodgers last month.

The Fayetteville Observer reports that the city removed the equipment of SWAT Gaming Group and 777 Sweepstake, both of whom owe in excess of $200,000 in unpaid business privilege license fees. Police officers protected city officials while they transferred the equipment into a waiting moving truck. The equipment will be sold to help pay up some of the unpaid business license fees.

Fayetteville City Attorney Karen McDonald said state law gives cities broad authority to enforce the collection of license fees. One way is seizing property, she said.

"The city is aggressively pursuing the collection of privilege license fees," McDonald said.

Fayetteville began charging sweepstakes businesses an annual $2,000 per café and $2,500 for each computer terminal last year. Sweepstakes businesses have been overwhelmed with the new fees and have tried fighting the city’s right to collect these fees in court in October, 2010. While the court case has not been settled yet, city officials still have the authority to apprehend equipment from those businesses that haven’t paid this year’s privilege license fees.

City officials have given a general warning to local businesses that they will continue seizing property of businesses that have not paid this year’s privilege license fees. There is a list of 25 businesses that owe large amounts in business license fees and will be the next targets for equipment seizure by the city.

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