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Tampa council approves tax hike

A 5-2 vote brings city businesses a 5 percent increase for the next two years, which will go toward improvements at the Business Tax Division.

TAMPA - Businesses within Tampa city limits may soon see a 5 percent tax increase.

City Council voted 5 to 2 on Thursday night to impose the two-year tax increase to help the city's Business Tax Division improve its services. The increase goes into effect immediately.

Some of the money would go toward developing a pay-by-credit-card system online and in the office, and upgrading the telephones. If a representative is on the telephone when a customer calls, there currently is no automated system telling customers when they will receive help, said Bonnie Wise, the city's revenue and finance director.

Wise said that in 2003, the city brought in $9.8-million in revenue from occupational license fees. About 10 percent of overall businesses in Tampa, Wise said, aren't paying their occupational tax receipts.

The Business Tax division operates on a budget of $800,000, said Wise.

"Clearly, money has to be reassigned to this division," said council member Shawn Harrison.

Wise expects the tax increase to generate an additional $500,000.

Harrison asked Wise to consider what would happen if the city dropped the taxes by 5 percent instead of raising them.

"Would that bring more business into the city?" he asked.

Jake Slater, business tax manager, said employees in his division use their personal cars to deliver delinquent notices. He'd like to have money to buy cars for the employees and outfit them with laptop computers. One car would cost at least $16,000, he said.

Council members Shawn Harrison and Rose Ferlita voted against the increase.

Ferlita, a business owner, said the business tax department has been "pitiful" in the past, and she hated having to deal them. She said she understood the need to improve services and she liked the work that Slater, on the job two months, had done so far. But she wouldn't support the increase.

"I can't justify a tax," Ferlita said. "I can't support it for a day, or two years or anything."

- Times Staff Writer Saundra Amrhein contributed to this report.