By David Lazenby
Editor
TRUSSVILLE — Trussville city councilors on Tuesday authorized Mayor Buddy Choat to sign a contract with PReMA Corp., a company interested in helping the city to collect unpaid business license fees.
Steve Whitman, executive vice president of PReMA Corp., speaks on Thursday with Trussville City Council members.
Choat, who invited representatives of the firm to attend a workshop the Council held Thursday, said he feels like the city is missing out on revenue PReMA wants to help Trussville recover.
Steve Whitman, executive vice president of the firm that specializes in providing resources to assist cities and counties, said PReMA is currently working with the cities of Mountain Brook, Birmingham and Montgomery on similar projects.
So far, Whitman said PReMA has helped the City of Birmingham collect $9 million in license fees, penalties and interest on the overdue bills.
“We’re so experienced in doing this we know where a lot of these people are already,” Whitman said. He added that his corporation works on a contingency basis, meaning “If we don’t find anything, you don’t pay us a dime.”
Choat said on Tuesday that PReMA will be entitled to 50 percent of what it collects on behalf of the city.
PReMA, stands for Public Resource Management Alliance Corporation.
Whitman said many of the businesses it discovers are behind on the business license fees, or not paying the proper amount, are out-of-town companies that service the city. These, he said, are especially prevalent in the healthcare industry.
Choat recalled an instance when city officials discovered a local business that owed the city about $35,000 in overdue business license fees, penalties and back interest.
“It was one of those where the home office was out of state,” Choat said. “They were behind almost five years.”
City Clerk Lynn Porter said it has been about 10 years since the city had a revenue officer who was performing the duties PReMA now offers to perform on the city’s behalf.
“We feel like that has fallen through the cracks,” Choat said following Tuesday’s council meeting.
18 Comments
Massey Willingham
Are they being paid a flat fee for their service, or a percentage of what they collect.
Jennifer Ford Snyder
The article says 50%
Massey Willingham
Thanks, I missed that some how.
Massey Willingham
Second question is what sort of oversight they will have. I’m suspect of companies that have auditing and tax collecting authority that are paid on a commission basis.
Tony Anselmo
Sounds like an opportunity to employ a revenue officer 😐
Gail Smith Wright
THE City should hire an employee to make sure businesses pay. If they don’t pay, shut them down. I bet the “main office” would come forward if their local business were shut down by authorities. It is not fair to other businesses in Trussville that DO pay their license fees, etc., especially small businesses.
Paul Pale Coney
This will help. I guarantee it
Thomas Morse
Be careful collecting from small businesses. Many consumer protection laws are being applied to small businesses thanks to the CFPB that was set up under the Dodd-Frank Act during the Obama administration. Things like the FDCPA and UDAPP which were designed to protect consumers(not businesses) are being applied to small businesses under the pretense that many small businesses aren’t sophisticated enough to understand business law. I agree with the initiative and I believe every business should pay their fair share I just don’t want to see a collection agency put the city and subsequently the tax payers at risk. There should be significant oversight by the city to make sure the agency is operating within the guidelines of the current laws and are going above and beyond what is required.
Steve Turner
Footnote: Steve Whitman – fullback for Bear Bryant’s 1978 & 1979 Alabama National Championship teams and also a Huffman High alumnus.
Sandra Merchant
We pay ours faithfully every year!!!! Why doesn’t anyone else!!! Ridiculous!!!!!
Lamar Adkins
Always thought if you didn’t have a license you couldn’t even open your front door for business, so the city of Trussville should be going around locking the doors of the business.
Jeremy Ware
Massey Willingham the city gives them authority to attempt to make business owners self audit and self incriminate. Then they will fine you for any missed payments along with the payment. It’s scumbaggery at the highest level. Business license are a tax on business owners and the people.
Jeremy Ware
Incorrect. Business license is a tax. It protects absolutely no one. It’s not used as insurance or to cover losses of victims. It’s a tax and is absurd especially for traveling contractors. There needs to be country and state license, cities use it to further pad their expense accounts
Jeremy Ware
Because lots of people travel for work to multiple towns a day. Lawn services plumbers electricians etc etc. it’s an absurd taxation and hindrance
Massey Willingham
Jeremy Ware When they “hired” a firm several years ago they “audited” my business and it cost me about $3k in accounting/legal fees to prove I was up to date on license and city taxes. The auditor commented “We primarily are just looking at your books to see who might be doing business in our city without a license.” I see it as a conflict of interest for an auditing authority to be compensated based on said audit.
Jeremy Ware
I agree. Sorry to hear about that. We had a similar situation. They are truly the scum of the earth. All these so called southern conservative that “believe” In free trade and capitalism believe only until they are elected. They don’t understand the burden of small business owners that travel to multiple towns to do business. People have to go where the work is. This company wants to catch you working in other cities as well. They contract with multiple cities creating a giant net and when they audit you they can bust you on as many offenses as possible. It should be illegal. Speaking of illegal lots of the illegal immigrant business owners will just close up shop and be back at it under a new name the next week. Easy to do when your name isn’t on the side of the truck
Sandra Merchant
Jeremy Ware, no sir it’s not! It’s part of life! We’ve been in business over thirty years, done jobs all over the southeast and a few up north! Never have we not paid our business license fees!! Some were an absurd amount but we paid them anyway!!! If you’re going to be in any kind of business you follow the laws of the land!!! Period!!! BTW: Our business is commercial plumbing!!! We’ve done several jobs right here in Trussville!!!!
Jeremy Ware
Sandra Merchant taxation is theft. Period. You’re virtue signaling. You’re on your moral high horse because you paid the mafias tax to do business in their town. The law is oppressive and is a hinderance to growth.