West Orange Rolls Out New Fee For Local Businesses: Mercantile License

WEST ORANGE, NJ — Do you own, lease or operate a business in West Orange? The clock is ticking on the deadline to pay for a new “mercantile license” fee – and there’s a hefty fine waiting for those who refuse.

West Orange recently issued an advisory about a new ordinance that gives the town the authority to charge a mercantile license fee to local businesses. Annual registration fees are $100 for an initial unit and $20 per each additional unit.

See the township’s replies to some frequently asked questions about the new fee here.

West Orange businesses and rental owners must obtain an annual mercantile license no later than Oct. 31. The town has created an online portal to register, which can be accessed here. Registration can also be done in person at room 214 at Town Hall, 66 Main Street.

According to the township’s FAQ page, officials plan to enforce the ordinance via the planning and zoning departments. The fine for owners who fail to comply is $2,000.

Many other New Jersey towns require businesses to have local mercantile licenses, including Paterson, Ocean City, Long Branch and Asbury Park.

The ordinance – voted into local law by the town council in June – is being rolled out in connection with a state law regulating insurance coverage. According to West Orange officials, N.J.S.A. 40A:10A-1 requires business owners and rental unit owners to obtain certain levels of liability insurance, a stipulation also included in the town’s ordinance.

BUDGET, FEES IN WEST ORANGE

The mercantile license is among a wave of new fees being rolled out in West Orange after a tumultuous budget season – including a controversial sewer fee hike. Read More: Sewer Fees Increase In West Orange; Council Gives Green Light

To help chop down a municipal tax increase that at one point stood at 16 percent – but was eventually reduced to 5.8 percent – town administrators looked at three possible ways to balance the budget: cut spending, dip into reserve funds, or increase revenues.

The latter option – adding more revenue to the town’s coffers – hasn’t been “significantly addressed” in more than 15 years, according to a budget presentation given by chief financial officer John Gross in May (watch the video below, cued to the discussion on mercantile licenses).

Gross estimated that West Orange could raise an extra $426,630 if it creates new mercantile license fees for commercial entities.

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