Riverton is bucking the trend when it comes to the cost to do business in the city. Businesses will no longer be charged licensing fees to conduct business in Riverton, following the City Council’s final approval of the city’s 2018-2019 fiscal year budget and fee schedule in their June 19 meeting.
Mayor Trent Staggs first proposed eliminating the city’s business licensing fees in the budget he presented to the city council on May 1. The move, the first of its kind in Salt Lake County, essentially makes it free to do business in the city.
“We understand the value our local businesses provide to our city and our residents,” said Staggs. “By eliminating the business licensing fee, we want to send a clear message that Riverton is open for business.”
Businesses will need to continue to be licensed by the city, Staggs said, but there will not be a cost associated with it. The proposal does not include businesses that serve or sell alcohol or sell fireworks. It also does not include the elimination of the commercial building inspection fee required for new applicants or conditional use permit fees.
A state law passed in 2017 restricted a municipality’s ability to charge a fee for certain home-based businesses and this change in Riverton takes it a step further.
“I philosophically agreed with the move by the Utah State Legislature to eliminate business licensing fees for home-based businesses last year,” said Staggs. “I’m thrilled that we are extending that benefit to our commercial businesses right here in Riverton.”
Commercial business licenses in Riverton had been set at $200 annually and brought in an estimated revenue of $90,000 to $95,000 per year to the city. The loss in revenue from the fees will be offset by a slight increase in annual sales tax revenue the city has experienced this year due to increased economic activity. Given this offset, there will be no reduction in city services as a result of the fee elimination.
“We’re excited to move in this direction,” said Councilman Sheldon Stewart. “By eliminating licensing fees for businesses, we are eliminating a barrier for them to conduct business in our city. For anyone considering opening a new business here in Salt Lake County, I’d encourage them to consider Riverton.”
The change took effect July 1 for both new business licenses and renewals.