Fayetteville Auditor Collects Unknown Business License Fees

Letters sent to local landlords this summer informing them of their obligation to pay current and past-due Fayetteville privilege license fees have set off a storm of protests within the city.

While both city officials and landlords were unaware of the requirement of property managers to pay Fayetteville business privilege license fees, MuniServices LLC, an outside auditor hired to aid Fayetteville in their collection of licensing taxes, discovered the omission and sent letters to rental owners notifying them of their obligations.

Fay Observer reports that, “The idea of collecting back fees does not sit well with the City Council. Members said it is not fair to expect individuals selling their homes and renting them for a short period of time to pay license fees, especially in a highly transient military community such as Fayetteville where about half the residences are rentals.”

City Attorney Karen McDonald will look into the legal aspects of the landlord licensing requirements and advise council members on whether to enforce or dispose of this licensing requirement.

In the meantime, individual landlords are divided on how to treat the newly identified tax requirement. While Councilman D.J. Haire, owner of Fortune Hills Development, responded to the letter by filling out a Fayetteville business license application for his family business; Robert C. Anderson, a local resident, decided to ignore the summons for business license payments.

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