City Council Repeals $25 Business Registration Fee

East Providence Council members removed a $25 fee attached to a mandatory business registration requirement during Tuesday night's meeting. Letters that were recently sent out to approximately 1,600 businesses incited a from owners and members of the East Providence Area Chamber of Commerce.

According to City Manager Peter Graczykowski, the purpose of the ordinance is to ensure every business owner is registered to collect approximately $500,000 in lost taxes; at least a couple hundred business have not registered with the city. He and Tax Assessor Steve Hazard said the approximate $40,000 generated from the fee would pay administrative fees to process the new registrations; however, the $25 fee is not instrumental to get owners to register with the city.

Before the motion was made, business owners from across the city took the podium. Allan Gilmore, owner of  Shop, said they shouldn't be burdened with another form to fill out.

"Business owners already pay their fair share," he said.

Denise Marie Lincoln owns a chiropractic business with her husband. They have spent thousands in fees and taxes in order to stay in business.

"$25 isn't a lot of money," she said. "It's the principle...We're tired of taxes. It's one more fee we have to pay."

Others thought the business registration fee opened the door for future increases. 

Councilor Michael DiGioia said he would not support the fee as it was another burden to the tax payer and made a motion to remove the fee from the ordinance. Councilor William Conley Jr. seconded the motion. It passed in a 4-1 vote. Councilor Katie Kleyla was the only no vote, noting the reimbursement process was not clear after the motion.

Laura McNamara, executive director of the East Providence Area Chamber of Commerce, commended the council for repealing the fee at the end of the meeting. She said low property and business taxes are integral to retaining a healthy city.