Langford Scraps Annual Business License

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CFIB applauds Langford mayor and council for scrapping annual biz license renewal

The south Vancouver Island community of Langford, British Columbia, has announced that they are dropping the requirement for local businesses to renew their business licenses annually, and allowing them to apply for a fairly-priced ‘permanent’ license. The Canadian Federation of Independent Business (CFIB) applauds the move and urges other B.C. municipalities to follow suit.

“This news from the City of Langford – coming out during the middle of Small Business Week – really made our day,” says CFIB BC director of provincial affairs Mike Klassen. “Requiring an annual license fee just so businesses can operate is an old convention that deserves a re-think. It is really just another tax that creates more work for city employees and discourages job growth in our communities.”

Mike Klassen contacted Mayor Stew Young as soon as he heard the news. Mayor Young explained that while he expects the revenue loss from business licenses to be about $70,000 per year, it costs him about $40,000 per year to administer and enforce it.

“The net revenue loss of $30,000 is a tiny fraction of the $20 million in taxes he raises from businesses each year,” adds Klassen. “The mayor rightly questions why should the city bother businesses that are bringing jobs and prosperity to his community? The small loss is more than made up for by more businesses opening up in Langford.”

“CFIB would like to acknowledge the leadership of Langford’s mayor and council on their new approach to business licenses. It most definitely will earn Langford city council a nomination for CFIB’s Golden Scissors award for cutting red tape. It is a great message to other local governments during the week we’re loudly encouraging everybody to shop local,” says Klassen.