Cape Girardeau considers business license changes

Cape Girardeau officials are looking into changing the business and liquor license application processes in an effort to hold business owners accountable for unpaid taxes. The proposed changes, to be reviewed by the city council Monday night, would require license applications to list all individuals or legal entities with more than 20 percent ownership, said Heather Brooks, assistant to the city administrator.

Upon making an application, all those listed as partial owners would be examined to determine if they, or any businesses they are associated with, owe the city taxes, unpaid utility bills or other fees, Brooks said. Business owners also will still be required to provide a "No Sales Tax Due" certificate from the Missouri Department of Revenue.

The proposed ordinance won't make it automatic that a license would be denied, but it provides the authority to take that fact into consideration and allows the city to do so if it chooses.

Business licenses are renewed each year in January and liquor licenses are reviewed annually in July. Site inspections are already underway in preparation for upcoming liquor license renewals.

Under current city ordinances, these background checks are only done on the legal entity seeking the license, whether that be a LLC or an incorporated business.

Since January, 11 Cape Girardeau businesses have had their state sales tax licenses revoked by the Missouri Department of Revenue for failure to pay sales tax.

City officials realize they're walking a fine line between taking action against those who have made a business strategy out of not paying their taxes and penalizing business owners who have just fallen on hard times.

"We want people to come here and take a risk and start a business in this community," Meyer said. "We understand that if you're going through a rough patch, there's a better chance of those taxes getting paid if your business is still operating than not."

A provisional license process is under consideration, where businesses that set up payment arrangements with the city would be allowed to stay open as long as they continued to make progress toward paying back what they owe, Meyer said.

Annually, the city of Cape Girardeau processes about 150 new business licenses and 1,500 business license renewals. About 115 liquor licenses are renewed each year and about 20 new licenses are issued.

mmiller@semissourian.com

388-3646

Cape Girardeau City Council agenda

7 p.m. Monday

Cape Girardeau City Hall

401 Independence St.

Action items

Consent ordinances

* An ordinance accepting a permanent utility easement from Jonah T. Yates and Margaret A. Yates, for construction, maintenance and creation of water and sewer lines.

* An ordinance accepting a storm water drainage easement from Robert A. Drury for the intersection of Bloomfield Road and Etherton Drive.

* A resolution authorizing applications to the Missouri Department of Social Services, under the Emergency Shelter Grant Program, for Safe House for Women Inc. and the Salvation Army, and authorizing the city manager to execute all necessary grant documents.

* Approval of a temporary 5 percent beer-by-the-drink liquor license for John J. Yallaly, d/b/a American Legion Post 635, for an event to be held June 4 through 6 at the A.C. Brase Arena Building.

* Conditional approval of an original package liquor and Sunday sales license for D.C. Inc., Craig Taylor, d/b/a Dirt Cheap Cigarettes Beer and Liquor, 420 S. Kingshighway, Craig P. Taylor, managing officer.

* A motion accepting the sanitary sewer improvements for Deevers Cove Subdivision contingent upon the receipt of as-built drawings of the improvement.

New Ordinances

* An ordinance authorizing the mayor to execute a permanent utility easement to Union Electric Co. for the relocation of electric lines between Kingsway Drive and Kingshighway.

* An ordinance amending Chapters 5 and 15 of the city code regarding license applicants with delinquent city accounts.

* An ordinance approving the record plat of Kingsway Subdivision.

* An ordinance approving the record plat of Spears Subdivision.

* An ordinance approving the record plat of Jason's Subdivision.

* An ordinance authorizing the mayor to execute a quit-claim deed to S.E.MO Land LLC for property along Lexington Avenue.

* An ordinance annexing land upon the request of Jonah T. and Margaret A. Yates.

Appointments

* Appointment of Mayor Pro Tempore.

* Appointment to the Cape Girardeau Area Magnet Board of Directors.

* Appointments to the Airport Advisory Board.