In a move to incentivize property owners to pay their delinquent taxes, Ferguson lawmakers passed an unprecedented ordinance on Tuesday. The City Council voted 6-1 in favor of the bill, which allows the city to deny business license renewals for those with unpaid property taxes, even if the business owner is just a tenant and the landlord is responsible for the back taxes.
Under the new law, businesses whose landlords are behind on taxes will receive a “provisional” license for nine months. If property taxes remain unpaid after this time, the city’s director of finance will hold a hearing with the business and property owner to determine whether to extend the provisional license. This approach differs from what is typically seen among St. Louis County municipalities, who usually do not actively pursue collection of delinquent property taxes as it falls under their purview to auction off properties once they become delinquent within three years.
Some residents have expressed concerns about the fairness of the new law, such as retired architect Alan Mueller who believes it may lead to lawsuits against businesses that lose their license due to unpaid property taxes. In response, council members amended the bill by adding a nine-month grace period before any action is taken against delinquent taxpayers. Councilwoman Naquittia Noah was the only member who voted against it.
Councilman Nick Kasoff, sponsor of the bill, argued that most commercial properties are owner-occupied and that it would be unfair for property owners behind on taxes to continue collecting rent from their tenants while evading their responsibility towards paying off their debts. The discussion surrounding this bill was brief but ultimately led council members to pass this new legislation with hopes that it will encourage timely payment of property taxes in Ferguson.
