BENTONVILLE -- Business owners will no longer have to pay to register their businesses with the city.
The City Council voted 8-0 at its meeting Tuesday to eliminate both the city's mandatory business registration fee and the associated renewal fee.
Shelli Kerr, Bentonville's comprehensive planning manager, said the city's business registry will stay in place without the fees. About 610 businesses were registered in the program as of last week.
The City Council approved the business registry Dec. 12, 2023.
The registry came with a $25 fee for all businesses and an annual $15 renewal fee, as well as a prorated fee of $12.50 for any registrations after July 1, starting in 2025. Nonprofit groups were exempt from the fees. The intent of requiring fees was to establish a value to the registry and help pay the cost of administration, according to council documents.
Kerr said she didn't have figures on how much revenue the fees generated for the city available Tuesday.
The primary reason for implementing a business registry was to create an accurate and up-to-date record of businesses located in Bentonville, including contact information, business type and employment numbers, according to the city.
The data provided by a business registry benefits the city, the Greater Bentonville Area Chamber of Commerce, the Bentonville Advertising and Promotions Commission and Downtown Bentonville Inc. as they address economic development and planning, council documents state.
The ordinance establishing the business registry requires businesses to register as long as they continues to operate unless specifically exempted. It states anyone doing business in the city without registering and paying the registration fee first -- or renewing and paying the renewal fee -- will, upon conviction, be deemed guilty of violating Bentonville's municipal code and subject to penalty.
Suspension and discussion
Cindy Acree, Ward 2 City Council member, asked during the council's Finance Committee meeting Tuesday about the expenses associated with the business registry. Kerr responded they mostly consist of software the city already has on top of staff time for administering the program.
Bill Burckart, Ward 3 City Council member, said he was curious if the city had money in its budget to cover the cost of the registry without the registration and renewal fees.
Burckart added the City Council should support the program unless it decides to get rid of it.
Kerr said the city has spent considerable time on the registry this past year due to it being new. It hopes it won't have to devote as much staff time to assisting people register with the program a couple of years down the road.
The city has been internally talking about what it can do to continue supporting businesses in Bentonville, such as holding events and starting other programs, according to Kerr.