D.C. Bill Would Give Long-Time Businesses Tax Credits
Call it the D.C. Chili Dog Preservation Act of 2005.
The economic resurgence of U Street and a number of the city's other once prominent commercial corridors is given some long-time businesses a bit of heartburn. While the influx of investment and foot traffic have been a boon, many businesses profits haven't kept pace with their property taxes.
Council Chairman Linda Cropp, D-At large, and council member Jim Graham, D-Ward 1, introduced a bill Dec. 6 that would grant long-time business owners a 50 percent tax credit to help deal with the rising tax burden. D.C. officials have passed several tax relief measures for homeowners in recent
years, but nothing to protect small businesses.
"This is the commercial equivalent to being house poor," Graham told his colleagues during the council's recent legislative session. "These people can't afford to remain in business."
Qualified businesses would have to be located in one of the city's historic districts, have been in business for at least 20 years and have annual revenues of less than $5 million. Graham points to constituent favorite Ben's Chili Bowl, whose taxes have increased from $438,000 to $1.1 million next year. "You've gotta sell a lot of chili dogs, a lot of chili dogs," he says.
-by Sean Madigan