Business License Fee Study

Background
The City of Columbia, Missouri, is seeking proposals for a Business License Fee Study to evaluate and potentially reform its current business license fee structure. The existing system, established in the 1970s, relies solely on gross receipts to determine fees. This approach has become misaligned with modern business practices and does not adequately differentiate among various industries. This initiative responds to concerns raised by the Columbia Chamber of Commerce and the broader business community regarding the lack of justification for fee levels and disproportionate impacts across sectors. The study aims to improve equity, transparency, and alignment with service impacts while ensuring legal compliance and administrative practicality.

Work Details
The contractor will provide the following services:
1) Review and analyze the current City’s business license fees;
2) Provide benchmark comparisons of similar municipalities within Missouri;
3) Develop recommendations for updated fee structures;
4) Prepare a legal defensibility memo addressing fee versus tax characterization and Hancock risk flags;
5) Create an implementation package that includes rate tables, ordinance language options, administrative rules, and a transition plan;
6) Present findings and recommendations to staff and elected officials as requested.

Period of Performance
The contract period will commence upon contract award in November 2025 and will continue until project completion. The total duration shall not exceed five years and three months as per City Ordinance.

Place of Performance
The services will be performed at the City of Columbia's Finance Department, Business License Division located in Columbia, Missouri.

Bidder Requirements
Offerors must comply with all applicable laws regarding conducting business in the City. They are required to submit documentation proving compliance with state regulations including registration with the Secretary of State, necessary licenses, permits, insurance requirements, and participation in federal work authorization programs such as E-Verify.