The costs of doing business are high in South Florida and rising local taxes only add to the burden for small-business owners.
Just ask chiropractor David Chess.
He has had his practice in the BocaRay Plaza at Military Trail and Linton Boulevard in western Delray Beach for the past three years.
“Overhead is high here in Florida. The tax portion is just one more log on the fire of overhead,” he says.
His costs include liability insurance, which is especially high for health professionals; rent, which includes a percentage of the property tax the landlord passes along to the tenants; and tangible tax.
“Each little thing — when you add them all up and look at your profit margins, they become very slim.
“It’s tough. You’re dealing with a lot of outside influences,” Chess says.
But the tangible tax is what has Chess really riled.
All businesses are assessed this tax, which is like real-estate tax but is levied on the personal property within buildings. Office equipment and furniture, for example, are subject to the tangible tax.
Chess’ tangible tax from last year was $1,024. Because he didn’t pay the bill before the deadline, there were also about $50 in late fees.
Businesses are supposed to file a return listing the property subject to the tax, says Herman Hiers, director of the Tangible Tax Department in the Palm Beach County Property Appraisers Office. He said that compliance is usually very good. If the business does not file a return, the appraiser’s office uses the best information available — usually from the previous year, Hiers says.
The proceeds go into the general funds of the city or county to pay for parks, roads, schools, police and fire protection and all other city and county services.
Chess resents the tax because he does not see that the local governments are spending their money wisely — only continually asking for more.
“It’s insane,” he says. “It’s like a spendthrift who never has a dime and is always begging for money — only they call it tax.”
Instead of throwing more money into the system to pay for the problems that come with growth, an evaluation of what needs to be done and how to pay for it must be done, he says.
“We need an objective evaluation of our government spending,” Chess says. “I’m a Florida native — I’ve seen this place turn into a zoo.”
Chess is particularly concerned with the environment, trash disposal and protection of water resources.
“When I was a kid there were land crabs on every corner,” he says.
“It’s (elected officials’) duty to do the right thing rather than what gets them the vote.”
