Ferguson approves law pulling business licenses for delinquent taxes

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 and decide whether to extend the business’ provisional license.

The new Ferguson ordinance is unusual among municipalities in St. Louis County, which don’t generally go out of their way to collect delinquent property taxes because state law tasks county governments with auctioning off properties within three years after they become delinquent.

Resident Alan Mueller, a retired architect, said the bill was “cruel and unjust” and could open the city to lawsuits from businesses that lose their license because their landlord didn’t pay taxes.

“It will be very burdensome for someone who has just been put out of business to seek indirect damages from a private entity with no guarantee of payments,” Mueller said during public comment. “It’s much easier, and payment is assured, by suing the city for the direct damages that will accrue from this bill.”

The council voted without discussion after amending the bill to add the nine-month grace period in response to concern from business leaders. Councilwoman Naquittia Noah was the lone vote against the bill.

Ferguson Councilman Nick Kasoff, who sponsored the bill, said most delinquent commercial properties were owner-occupied and that it would be unfair to allow property owners who are late on taxes to draw revenue from their tenants.