Kremmling enacts business license requirement
November 3, 2009
Businesses wishing to ply their trade in Kremmling will soon need to be licensed by the town.
Town Manager Ted Soltis told trustees that the $24 annual license fee is not intended to generate revenues, “but we have an obligation to know what’s going on in the community.”
The license requirement, which the trustees adopted with passage of an ordinance Monday night, will allow the town to compile a database of businesses, Soltis said, so town officials can make better-informed decisions.
Businesses that sell items at retail or provide taxable services will need the new license and will still be responsible for collecting sales tax.
Trustee Erik Woog said the licensing requirement is a relatively inexpensive “matter of accountability” that few legitimate businesses will be concerned about.
Other trustees echoed that sentiment during a 15-minute discussion about details of the ordinance, including whether it applies to businesses not located in the town but that conduct business there.
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It was agreed that businesses which conduct “frequent and usual” business in the town would need a license regardless of where they are located physically.
Enforcing and tracking that is “going to be a real nightmare,” Trustee Mike Music said, though he agreed it needs to be done.
Mayor Tom Clark pointed out that the ordinance, while new to Kremmling, is not precedent-setting. Many towns across Colorado and the nation have similar laws on the books, he said.
Nevertheless, “It’s going to be a bit of an adventure to get everyone to conform,” Woog suggested.
Penalties for non-compliance range up to a maximum $1,000 fine and/or one year in jail, though Soltis emphasized that town officials intend to take a “positive” approach to the requirement rather than a punitive one.
After the meeting, when asked specifically about whether a provision of the ordinance that requires businesses to comply with federal law would preclude location of marijuana dispensaries in Kremmling, Soltis said it would.
He also said other towns and cities have included similar provisions in their business-licensing laws but they have yet to be tested with respect to marijuana dispensaries.
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