Oviedo to keep ‘junk fee’ and continue partnership with Chamber of Commerce

During the first City Council meeting of the new year, Councilmember Alan Ott suggested eliminating the local business tax instead of supporting the Chamber of Commerce. Ott said he was not sure what local businesses get from the “junk fee” except the right to conduct business in the city.

“If we did something like that, then that’s a way that we could support, you know, every small business, regardless of what chamber or other business organization that they were a part of,” Ott said.

The Chamber only directly helps the businesses that pay to be members. About 10% of local businesses in Oviedo belong to the Chamber of Commerce, Mayor Megan Sladek said.

Sladek agreed with Ott – also calling the tax a “junk fee” – saying that she has been wanting to get rid of the tax “forever” since “we get nothing in return.” She said that businesses do not profit from paying the tax, and that the money could be better used by the businesses to promote their products and other growing endeavors. 

Seminole County has two Business Tax classifications that are collected annually by both the city and the county: From the county the fees are $25 for non-regulated businesses and $45 for regulated businesses. The annual occupational license fee for a small retail business costs $40, while industrial and manufacturing businesses cost $50. 

According to resolution No. 386-89, the city’s portion of those business taxes ranges from $20 to $1,000 depending on the type of business, though only one type of business, “Adult Entertainment,” is charged above $350 per year. Additional types of merchant not specified by a set flat fee can be charged up to $600 per year based on gross sales.   

During the mayor’s report toward the end of the meeting, Sladek said she was under the impression that the Chamber did not want to eliminate the tax, but Sladek wanted to do it since “it’s the right thing for local businesses.”

The Council reached consensus, with the majority not wanting to discuss eliminating the tax.

“It’s still a possibility, we just need three votes,” Sladek said.

The City of Winter Springs cut their own business fee in 2022.

Continuing the partnership

The Council decided to continue its $5,000 partnership with the Oviedo and Winter Springs Regional Chamber of Commerce to support local businesses by providing promotional and networking opportunities. The partnership makes way for about $10,000 in fee waivers for specialty events such as Taste of Oviedo, according to Code of Ordinances Section 2-291(b).  Sladek said the fees waived include security, trash services and other city services. In the past, the city waived about $10,600 for the event.

Cathy Perry, the Chamber’s board chair, said she thinks Taste of Oviedo benefits the city since many people from outside Oviedo come to attend the event, supporting the city and Chamber.

“When you talk of Taste of Oviedo, I know people just automatically think of food,” Perry said. “And of course, we’re going to have our food vendors out there, as many that can participate, but it’s also a great way for the non-brick-and-mortar businesses in town to have a presence and to be able to interact with their customers.” 

The Chamber also hosts the annual Central Winds Music Picnic Festival and Ovations Awards Gala, in addition to smaller monthly networking opportunities such as the Women’s Inspirational Network, Oviedo Winter Springs Business Alliance and coffee hours.

Perry said the Chamber hosts events at different times during the day so more people can accommodate the meetings into their schedules, such as the happy hours and her favorite, the Women’s Inspiration Network.

“It’s a different energy when you get a room full of women, and we’re just, I think we’re pretty authentic and just really try to do business with each other. We try to have an inspirational or some kind of speaker that, you know, gives you some takeaways that you can implement in your business,” Perry said.

Perry said she thinks when the Chamber is done right, businesses are given many opportunities to meet “the right people” to improve their businesses.

“Just because you’re a great dentist doesn’t mean you know how to run a business, you know. So I think learning different ways of running your business, marketing, the social media aspects of it, the Chamber will give people opportunity … to listen to the experts within our own community,” Perry said.

The $5,000 price tag was discussed among the Council members, with Deputy Mayor Natalie Teuchert, Councilmember Keith Britton and Councilmember Jeff Boddiford speaking in favor of keeping the membership tier.

Boddiford said he was appreciative of the chamber’s partnership and the turnout at the Ovations Gala. He said he is fine with the level the Chamber is at.

“I appreciate the partnership both ways. I know we have a couple members up here that make every ribbon cutting that they can so they can get their photo in. I think that’s great, too. You know, showing the community that, as the local government, again, is there for them.”

Teuchert said she wanted to keep [the same funding level] with the Chamber as well, since she said she thinks “it’s really hard” for the city to support small businesses on its own, similar to how the Chamber does.

“They do a great job ribbon-cutting new businesses, networking them to others and supporting that community. So I appreciate all that they do as well,” Teuchert said.

Britton said the partnership with the Chamber holds value, and that the city needs to engage and support the business community. 

“This is one way that we can do that. I don’t think it’s something you put a dollar value on.”

When Ott countered with the dollar value, Britton responded, “Not in my mind. I think it’s worth much more than that.”

Ott mentioned the possibility of increasing the value to $10,000. Britton leaned forward in his seat and said “Yeah ,that’s a good idea.” There was no further discussion of increasing the tier.

There is enough funding in the fiscal year budget for the city to maintain the Corporate Partner of the Chamber Trade for Executive Partnership level. According to the city, other benefits of the membership tier include:

• Priority as presenting sponsor for signature events

• Lead mentor for Young Professionals Workshop

• Half table for Annual Ovations Gala

• Five annual featured ads in Chamber e-newsletter (provided by member)

• 50% discounted booth to OWSRCC Business Mixer Expo

• $1,500 Flexible spending dollars (for use on advertising and sponsorships)

• Participation in quarterly CEO roundtable

• Discounted Group Health Benefits (marketplace health)

• Featured as an investor in the business community on marketing banners

• Speaking opportunity at the quarterly luncheon

• One prominent half page color ad in Chamber’s Membership Directory

• Feature on homepage of Chamber website and/or social media

• Logo/Name placement on signage and recognition at Chamber events

• Four web ads on Chamber website

• One webinar episode

• Weekly recognition in Chamber e-newsletter

• Six tickets to quarterly Chamber luncheons

• Board of Directors seat priority consideration

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Editor’s note: The local business tax fee numbers were corrected after publication. They previously only included Seminole County’s portion of the business tax.