Taxing Taxes, Unfair Taxes

May 15, 2003

Dear Editor,

Council member Katz is right. (“Fees, Fees and More Fees,” March 15) The so-called “processing” fee for new business licenses and business license renewals is a tax on a tax. In fact, it is a tax increase disguised as a fee to recover the cost of services.

Its harshest impact will be on the smallest businesses in the City or businesses who are located elsewhere, pay business license taxes elsewhere, and only do business in Santa Monica a few days a year.

The new fee on processing applications will mean that the base cost of a new business license jumps from $75 to $85, while the renewal cost jumps to almost $95. An overall tax increase may, in fact be justified.

After all, the City has to cover the costs of enforcing the food ordinance and arresting evil doers who insist on feeding hungry people. But why hide a non-graduated tax increase designed to pack the same wallop for big and small businesses alike, regardless of their earnings?

And one further question: Why would any business want to automatically renew their business license when the cost is almost double what a new application would cost? Do the taxpayers have any choice here?

Linda Sullivan
Santa Monica

May 15, 2003

Dear Editor,

In Linda Tishman’s letter to the editor titled "Not All Taxes Are Bad!" (May 14) Yeah, OK "Tish," I can see how a businessperson such as yourself would feel that Measure S is not a bad tax since it leaves the business community virtually untouched by this absurdly unfair tax.

How anyone could say with a straight face that the $225.00 increase applied to each parcel, whether it be a one bedroom condo or an overbuilt multi-million dollar hotel is a good tax, needs to round out their business education with a course in business ethics. I mean, your kidding, right?