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D. Mayers

Business License

By: "Dee" Mayers
Wednesday, February 06, 2008 12:37 PM

I received an e-mail from my board saying that all Real Estate Agents and Brokers doing business in a city near me must purchase a business license.  This requirement has been in effect more than 3 decades and now the city has recently decided to take enforcement action.  We have until Feb 29th to purchase the license at a cost of  $63.00 per year plus a one-time application fee of $70.00.  Penalties may be imposed if we do not comply.

WHAT, does that mean that the surrounding cities will be doing the same?  And what about the agents and brokers, will we have to buy a license in these cities as well, where will it end?

The Association encourages all of us to attend a meeting in a few days to discuss the possibility of extending the deadline.  I say abolish this requirement.  Why penalize the real estate industry, what about the plumbers  electricians, inspectors, painters, the list goes on and on doing business in this city, are they required to purchase a license too?

What about you, do you have a business license for the cities you do business in?  For some reason I just can't wrap my head around this thing.

 

 

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Comments

The C Team
Member Since '04

The C Team said:

They tried to do this in our community, but finally decided not too as long as the Broker had a business license.  From my perspective, it was just a way to tax people more.  The way they got the city to change their minds was that we have to hang our license with a broker by state requirement.  I am sure it will come up again in a few years, but we are safe for the moment.

Darcy

February 6, 2008 3:38 PM
Lloyd LaTour
Member Since '07

Lloyd LaTour said:

I am in the Hampton Roads area in Virginia and for as long as I had my real estate license and working in a particular city we have to pay for a business license. They actually send a sheriff deputy out with a warrant if we fail to pay.

We are considered independent contractors which means we run our own business therefore we have to pay according to the city.

February 6, 2008 4:46 PM
Patrick Milligan
Member Since '06

Patrick Milligan said:

This is an interesting one.  You are operating a business and earning money in that town, so you should likely have a business license.  The thing is, realtors are an easy target.  All they need to do is hop on the MLS, and see who has a lisitng in their town, then send them a notice.  The plumber who gets his work by word of mouth, not likely to be asked.

I think it would be fair if the brokerage only needed to get a business license and that would cover for all of the agents, but not all towns agree.  There is one town in my area who is very dilligent about getting business licenses from realtors in their area, and I can't really fault them.

I purchase a business license from the towns I work in as well as the county, and not a lot of other agents do.  It gets me in the business directories, on the websites, and keeps me in the loop as to whats going on in town.  I currently have 3 business licenses and it's about $400/yr for all of them.  I don't see them giving us preferential treatment becasue we do business in other towns, but definitely, listing agents are the ones who will be asked for the license as opposed to the buyers agents.  I wouldn't buy a lisence unless I had a listing in the area, becasue who knows if you'll have a buyer, don't get it until you need it.

I'll personally take the cost and go along with it.  It's not a big enough expense for me to worry about for the return I get from the community, and it's a write off.

Pat

February 6, 2008 5:07 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

They won't give me a business license! LOL!

But seriously, I'm in an unincorporated area so none is required.

February 6, 2008 5:19 PM
Lloyd LaTour
Member Since '07

Lloyd LaTour said:

We only have to pay in the area where your license hangs. I can go all over the areas but when the commission check comes York County has their hand out.

February 6, 2008 6:19 PM
Troy Silvester
Member Since '06

Troy Silvester said:

Now wait?! I think what Patrick is saying is that if you have a listing in a town, you may be asked to get a business license for that town? What a nightmare that could be, even if it was just for the Brokerage (me) and not for the individual agents.  Over the past year we have had listings in at least 11 different municipalities.

I can see requiring a Business License in the city in which you are based, for the Brokerage, but everywhere you have a listing?  On top of that, for the individual agents?

So Candice, do you ever list homes in an incorporated area?

Who's idea was this? This is the kind of cause that I would hope would be picked up by the NAR and state and local Associations to nip in the bud! This is the kind of Political Action that I could support!

February 6, 2008 6:23 PM
Gregory Bain
Member Since '03

Gregory Bain said:

I'm all for it. Let's keep real estate local. The more fees and licensing the better. Less agents, less brokers, more business for me. Great idea, Dee.

Troy, let's get rid of the NAR and its' RPAC. I don't even like their commericals. And, from the reponse they get from the general public, neither do they.

February 6, 2008 6:59 PM
Cyd  Weeks
Member Since '05

Cyd Weeks said:

In my area an 'occupational' license is required for the location of the business.  So, since my broker has the office, the broker's location must be licensed by the city.  It has nothing to do with me or the other sales associates.  Just the location that the business is housed.  

February 7, 2008 10:21 AM
Mary Welch
Member Since '04

Mary Welch said:

Dee, since I am on our local city council I understand what they are doing. It is on the books that they require all businesses to be licensed. I am sure they are not picking on just the real estate companies.

We have the same requirement but it has never been enforced, I even brought it up once and nobody felt like it needed to be enforced, fine. It could be they have had somebody wanting to come in with a tatoo parlour or something the city does not want and this regulates who can operate a business in your town.

It is a good thing in my opinion.

February 7, 2008 10:34 AM
Carol and Steve Coldwell Banker Parker Realty
Member Since '05

Carol and Steve Coldwell Banker Parker Realty said:

Not required here on PEI.

yay...

February 7, 2008 11:26 AM
Klaus Nicholson
Member Since '07

Klaus Nicholson said:

Dee,   please don't ever bring this subject up again.  Some city employee around here might see it.  There is a small community across the river in Alabama that carries things a bit further, they trash yard signs and threaten police action.

Not Paying the piper!

Realtor, Columbus GA

February 7, 2008 4:12 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

[Troy sez: So Candice, do you ever list homes in an incorporated area?]

Absolutely. I'm only 3 miles outside the city limits.

And that city doesn't require me to be licensed, because my business is located outside city limits.

But I get your point. And I suppose eventually they will want me to have a business license. When they do, I will get one. Till then, my broker's and entity license will have to suffice.

Oh, and I'm an ordained minister. That might help. Or not! LOL

February 8, 2008 9:03 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

*my actual location where I am on record as operating from*

February 8, 2008 9:04 PM
Kenneth Fach
Member Since '05

Kenneth Fach said:

The Founding Fathers of the United States of America would roll over in their graves if they could see how entrepreneurs today are so highly regulated and taxed. Prior to 1913, there was not income tax, very little regulation of entrepreneurs, and almost no taxation. Now, we pay for the price for more government, and less liberty. In proportion to today, Americans were wealthier in the 1800's prior and for part of the 1900's.

February 20, 2008 8:00 PM

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"Dee" Mayers
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