TEMPE, AZ (AZFamily) — City leaders in Tempe are proposing a new business registry they say will help companies become more connected. The catch is it would come with a $25 annual fee and some business owners tell us they are not on board.
Cactus Sports on Mill Avenue is one of the many small businesses that power the city’s pulse. “All ASU licensed apparel and gifts. Like a bookstore, without the books,” described owner Troy Scoma.
The store has been around for 33 years and in all that time, Scoma said he has seen the city change and evolve. “We’ve had a really good relationship with the city. The city’s been great to work with,” he said.
That’s why he supports the city’s proposal for a $25 annual business license fee. The city says it would fund a database intended to support economic development, engagement with business owners and improve transparency.
“Twenty-five dollars is a pretty nominal amount. I’m sure they probably have a good reason for it. As a small business owner, you have a lot bigger problems to worry about,” Scoma said.
The Tempe Chamber of Commerce argues this would allow them to connect with new businesses and potential members. But a few doors down, the owner of The Plant Mill feels differently. “That’s actually kind of what I don’t like about it, is that I don’t know very much about it. I know it’s $25, not a huge overhead. I’m not going to close my doors over it,” Cassidy Luhan answered.
She worries the small fee won’t really lead to big improvements. “If we’re going to ask businesses to contribute even just a small amount, I think as a small business, I would really love to know how are they going to leverage that to really make an impact on the things that matter in Tempe,” she explained.
She thinks it could discourage entrepreneurship. “A lot of local businesses have started here, so we chose this place specifically because it didn’t have a lot of the overhead and cost associated with getting a business off the ground,” she said.
If passed, the city plans to have a six-month free registration period. Mandatory fees will begin early next year.
The Tempe City Council will meet to discuss the proposal on July 1 at 6 p.m. Arizona’s Family will follow the council’s decision closely.
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