Posted on 11/27/2009 8:56:41 AM PST by robert561
WEST PALM BEACH — Even for a business that sells $250,000 Rolls-Royces, a tax increase of 602 percent is too much.
So Braman Motorcars is fighting a change that West Palm Beach made to its business tax in 2007, and is refusing to pay a higher rate this year than it did before that change.
And the city commission is considering relenting. If it does, six of the city's largest retailers may be getting a rebate, thanks to Braman.
"I don't feel this was on purpose, but as a result of the new ordinance, we were severely penalized," said Vince Cerone, chief executive officer of Braman. "The difference is astounding.
"As a car dealer we have high-end products and therefore it unfairly penalizes us."
That's because the 0.46 percent tax rate is based on the value of inventory at each location of the business within the city.
Until 2007, companies such as Braman were protected because the tax, formerly called an occupational license fee, applied only to the first $2.1 million of inventory, meaning that no business in the city had to pay more than $9,923 per location per year.
With the elimination of the cap, 15 companies, primarily auto dealers, saw a big tax increase in 2008.
Braman went from owing $39,690 for its four locations to owing $278,467 under the new tax, including a jump from $9,923 to $156,751 at its BMW/Rolls-Royce/Bentley dealership at 2901 Okeechobee Blvd.
(Excerpt) Read more at palmbeachpost.com ...
Just hold on, it will be coming to all of us fairly quickly.
Obama’s America.
When faced with the options of having to fire city/government workers, devolve socialistic programs, defund eco-nut parks programs, et al, the ‘government’ will always choose the option “who is the richest, yet weakest (in an electoral way) target that we can tax the shit out of?” Google the recently implemented taxes on pipe tobacco, etc.....
Oh, it’s OK, it’s only a tax on “rich”. /sarcasm
This would have murdered car dealers, as 2.1 million gross is nothing to them. In the case of Rolls Royce, merely a month.
More brain dead politicians who know nothing about private enterprise.
We used to have a boat and yacht dealership in Pittsburgh PA in a prominent location just outside a major artery leading into the city. Great location in a city with Three Rivers where people indulged in boating. But they slapped a ten percent luxury tax on boats, and goodbye to a healthy boat dealership.
I think all personal property tax should be illegal, it's taxing earned and taxed income.
“I think all personal property tax should be illegal, it’s taxing earned and taxed income. “
I whole heartedly agree!
I wish they would put a 600% tax on abortion procedures.
My first thought, when reading the article was: What about the boat and yacht dealers. There has to be some high end dealers in West Palm beach.
Check stories about a recent tax on loose tobacco for rolling your own smokes, that was in the many hundred percent range too.
They have crossed the line big time and will pay the price come election time.
Then KS government tried it on businesses within areas that local government (along with some developers desiring the properties) VOTED themselves "special tax" to force businesses to close down or move.
Thankfully, in some cases the owners "fought City Hall" and won but not all.
Now their properties sport a BMW & VW dealerships with swanky showrooms. In that instance, even our corrupt "newspaper" trashed the business owners in public to force them out. Following suit, the television and radio stations printed lies and distortions about the businesses and business owners.
Sadly, some businesses closed or moved, their businesses torn down and "readied" for "wonderful condos and specialized shops" that now stand grassy land as the bottom dropped out of everything 1 & 1/2 years ago!
“You ever heard of a tax increase like that?”
Yes.......on April 1 Obama raised the taxes on roll your own tobacco by 2,400%.
y’all must be talkin bout Merriam:-)
Regards
alfa ;>}
Yup. Merriam in the first instance, Mission in the latter (former Mission Mall sits vacant rather than sell to a WalMart, went to chic developer for high-rise pricey condos and elite shops — now vacant land.)
““I think all personal property tax should be illegal, it’s taxing earned and taxed income. “
I whole heartedly agree!”
Kinda like inheritance tax??
The concept of "private property" is no more. Fergetaboutit! The government, federal, state and local owns your property. You rent it from them. Stop paying the rent and you get evicted or your property is repossessed. When they can tax the property you bought with your tax paid income, you don't own it, you rent it. Simple as that.
“Kinda like inheritance tax??”
There ya go!
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