New Law in Ferguson Targets Commercial Property Owners Over Unpaid Taxes: What You Need to Know

Ferguson Passes Legislation Revoking Business Licenses for Unpaid Taxes

Ferguson lawmakers have approved a new law aimed at pressuring commercial property owners to pay delinquent property taxes by targeting their ability to make money. The City Council voted 6-1 to approve a bill that could deny business license renewals over unpaid property taxes, even if the business owner is just renting space and the landlord owes the back taxes.

The ordinance gives businesses whose landlords are late on taxes a “provisional” license for nine months. If property taxes remain unpaid, the city’s director of finance would hold a hearing with the business and the property owner to decide whether to extend the business’ provisional license. This new law is unusual among municipalities in St. Louis County as they generally do not go out of their way to collect delinquent property taxes, as state law mandates that county governments auction off properties within three years after they become delinquent.

Resident Alan Mueller, a retired architect, criticized the bill as “cruel and unjust.” He expressed concern that the new law could lead to lawsuits from businesses that lose their license due to their landlord’s failure to pay taxes. Mueller suggested that it would be easier for those affected to sue the city for direct damages. Council members voted without discussion after amending the bill to include a nine-month grace period in response to concerns from business leaders. The lone vote against the bill came from Councilwoman Naquittia Noah.

Ferguson Councilman Nick Kasoff, the bill’s sponsor, argued that most delinquent commercial properties were owner-occupied. He believed it would be unfair to allow property owners who are late on taxes to profit from their tenants. This new law aims

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