Large Companies may Face Increased Business License Fees in Fairbanks

November 2, 2011

Following in the footsteps of President Obama’s ‘Buffet Rule,’ Fairbanks council members have proposed increasing the business license fees charged to ‘the rich.’

Fairbanks business license fees are based on the gross income of local businesses, with the cap having been set at $100 million. The current fee charged to businesses who make $100 million or more is $10,800, up from $10,000 charged in 2010.

Dorothy Chomicz reports in Newsminor.com that Mayor Jerry Cleworth has proposed increasing the city business license fees to $15,000 for companies earning between $100 million and $119.99 million annually and $20,000 for companies earning more than $120 million each year.

While Fairbanks city council usually increases business license fees each year, a tough recession and concern over the income of small businesses have convinced council members to do away with business license increases for 2012. City leaders feel however that the current license fee structure calls for an increase to large companies' business license fees.

“We just thought that the chart quit too soon. When the business license fee was set up (in 2007), a lot of thought was put into the fee structure itself, but we ran out of time and said ‘$80 million and above will work,’” Cleworth said.

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