Holmes Beach moves forward with business tax increase

HOLMES BEACH -- An increase in the business tax may be coming soon to the city of Holmes Beach.

The Holmes Beach Commission voted 5-0 last month to approve the first reading of Ordinance No. 16-06, which would increase the tax by 5 percent. The proposed ordinance calls for increases across the board, including for merchants, boat dealers and boat yards, hotels, contractors and dry cleaners, to name a few.

This would be the third increase in four years. The first increase was in 2012, and then again in 2014.

Holmes Beach officials are expected to have a second reading and a vote on the ordinance at the next regular city commission April 12, according to Holmes Beach Deputy City Clerk Lori Kee.

The tax is solely for the purpose of obtaining general revenue, according to City Treasurer Lori Hill.

Business taxes help pay for services such as roads, police, and other community services within the city, Kee wrote in an email.

Holmes Beach Commission Vice Chairwoman Jean Peelen said raising the business tax in the city has never been a contentious issue.

"We do this every two years. Every two years, we are allowed by state law to make a very tiny increase in a business tax receipt and that's what we did," she said, adding that she hasn't heard any concerns about it.

"At the moment the entire funding is on the backs of people who own real estate. We are supported by real estate taxes. We don't get any of the tourist taxes, so we're supported by the people who own property here. I think it's perfectly normal for business

es to also do their fair share to support the city and its costs and the services they get from the city."

Mixed reaction to proposal

Beverly Lesnick, owner of Island Coffee Haus at 5350 Gulf Drive, said she would feel this new increase if the ordinance is passed.

"My basic thoughts are, when we have increases like that, unfortunately we pass it onto our customers so our customers will feel most of the brunt of it," she said. "If we have an increase in products or whatever the case may be, then we have to past those costs on."

Steven M. Bark, owner of Bark & Company Realty on Gulf Drive, was not surprised by the proposed business tax.

"While I'm not wild about paying any more tax, I don't think a 5 percent increase is really going to hurt anybody. What is it, seven bucks? It's not a lot of money," he said. "Hopefully, they will spend it wisely."

Bark also opened the rental service AMI Beach Buggys this year, which would fall under "automobiles" in the proposed ordinance.

"Warren Buffet says he doesn't pay enough tax," he said, "but he's got 100 billion."

Deb Wing, the president of the Anna Maria Island Chamber of Commerce, wrote a March 25 email to members about the proposed increase.

"If you feel that this ordinance is something that affects you or your business please attend the meetings to learn more about this ordinance and participate in this process," she wrote. "If you can, please let us know if you plan to participate in the discussion on this ordinance at the Holmes Beach commission meetings."

Wing said she would like to take a poll to see if there is any concern from the chamber's members.

Not a lot of overall concern

"I'll probably be there April 12 to see what the turnout is. It's in season now, we're in our busiest time, but I'm not getting a general overall concern," she said. "For some people, it's a $60 a year increase or maybe just a $30 increase and, for some people, it's even much less than that."

Wing said vacation rental companies, which have a lot of inventory, may feel the biggest increase.

"We are always out there looking out for our members and we want to make sure that they get the information they need to make informed decisions," she said. "We feel it's very important for everybody to participate in the process of their local politics no matter what side of the fence post you're on."

Elsewhere on the island

Elsewhere on Anna Maria Island, the city of Anna Maria does not have a local business tax. Bradenton Beach does have a business tax and, according to Bradenton Beach Deputy Clerk Marie Montoya, the last business tax increase in the city was for 2013-2014 and is still in effect.

Ginger Young, a licensed massage therapist based in Headquarters Salon at 5376 Gulf Drive in Holmes Beach, first heard about the proposed increase on Friday. The 58-year-old said she's a contractor who, along with the two other hairdressers who share a workspace with her, pays the business tax.

"It's just difficult for small businesses because I work under contract, so in Holmes Beach you still have to have a business license in order to practice whatever it is you do. Everyone in the salon has to do that," Young said. "It's more difficult for people under those circumstances because they're not making as much money... it takes its toll on the people, on the small businesses that are here, but we have to do it."

Young, who used to live on the island but now lives in Northwest Bradenton, said there is much more business competition now.

"I know that Holmes Beach is putting up with a lot, the traffic that we have here is out of control. ... It's not the island that I lived in," she said. "Sometimes I think it would be easier for work to be here, but it's not the same. The feeling is not the same."

Amaris Castillo, law enforcement/island reporter, can be reached at 941-745-7051. Follow her on Twitter @AmarisCastillo.

This story was originally published April 2, 2016 at 10:52 PM with the headline "Holmes Beach moves forward with business tax increase ."