By THOMAS GRILLO
LYNN — Scofflaws take notice.
If the city gets its way, businesses who fail to pay their local taxes or have outstanding municipal fees or fines will lose their operating license.
Under the proposal that will be the subject of a public hearing next month, Lynn officials are seeking to revoke the license of any firm that is more than 60 days late in paying its personal property or real estate taxes.
“Our message is we will take their license away and force them to pay up or close,” said Ward 3 City Councilor Darren Cyr, chairman of the Ordinance Committee.
If the measure passes, any time a business applies for license renewal, the tax collector will provide information as to whether the establishment is up to date on their tax payments. If they are delinquent, the application will be denied until they pay. Typically, renewals come up on a yearly basis.
James Lamanna, the city’s assistant city solicitor, said the way the ordinance is written now, establishments must be delinquent for a year before the city can take action.
“Cities now have the option to reduce that to two months and that’s what we’re seeking to do,” he said. “It’s not uncommon for businesses to be behind in taxes.”
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Chief Financial Officer Peter Caron, the city official behind the proposed change, said he did not know how many businesses owe back payments or how much is due.
The idea for the change started two years ago when the city seized the White Eagle Cafe on Summer Street for nonpayment of more than $20,000 in taxes, he said. Lynn ended up owning the bar.
“That’s when I said this is crazy, we have to pay closer attention to this,” Caron said. “Now, it’s more heavily enforced and the council’s Licensing Committee has been aggressive with applicants, telling them to go pay your bills, come back and we’ll consider renewing your license.”
Still, Caron said, this is not an attempt to generate new revenues. It’s a new tool because the one year period before the city could revoke a license has been ineffective, he said.
“One year of nonpayment is just too long a time period,” he said.
Thomas Grillo can be reached at [email protected].