Small Businesses Rejoice as Matanuska-Susitna Borough Eliminates Business License Requirement

In a historic vote, the Matanuska-Susitna Borough Assembly unanimously repealed the business license requirement for businesses operating within the Borough. This change will take effect as soon as it is signed by Mayor Edna DeVries. The decision eliminates the need for businesses to purchase and display a borough license, which was first implemented in late 1995 and required a $100 fee with renewal every two years.

Although this repeal does not affect state and local license requirements, such as the $50 annual fee for a state-issued license and the $25 annual fee for city-issued licenses in Mat-Su cities, it will greatly benefit small businesses that have been burdened by these additional fees.

Data gathered from borough business registrations has not been used for economic development purposes in over 20 years. The income generated by the license fees primarily functioned as a business tax rather than supporting economic development. With this repeal, the borough hopes to redirect its focus towards more beneficial initiatives that will support small businesses and promote growth within the community.

Borough officials estimate a loss of about $541,000 in annual income from license fees but hope to offset this loss by redirecting business license staff to focus on securing new federal funding sources through grant applications. They note that business registration information previously used by the borough to contact local companies about regulatory changes and programs is already shared by the state.

The proposal to repeal the business license requirement was sponsored by Mayor DeVries and Borough Assembly members Dee McKee and Rob Yundt. They aim to streamline the process for businesses operating in the Matanuska-Susitna Borough and shift their focus towards more beneficial initiatives that will support small businesses and promote growth within the community.