Dems seek to halt business tax cuts to ease property taxes

The state Senate is weighing a bill that aims to re-institute municipal revenue sharing for the first time since the Great Recession for the purposes of easing the burden of local property taxes by suspending further reductions of state business taxes.

Senate Bill 301, sponsored by Democratic Sens. Dan Feltes of Concord, and Donna Soucy of Manchester, prevents further reductions of the business profits and business enterprise taxes, which were decreased to 7.9 percent and .675 percent, respectively during Republican Gov. Chris Sununu’s first term. The bill is currently being debated in the Senate Ways and Means Committee.

The bill projects to produce an additional $36.6 million in 2020 and $55.5 million in 2021 in tax revenue, according to its fiscal note. Soucy said the legislation assumes the state’s economy continues along its current trajectory, boasting the nation’s second lowest unemployment rate at 2.5 percent, according to the Bureau of Labor Statistics. In total, the legislation estimates business tax revenue would generate nearly $750 million year-over-year by maintaining the current rates.

“The bill assumes no significant economic swings in one way or another,” Soucy said. “We see stabilizing the rates as the final stage of the business taxes being reduced. Businesses have seen the benefit of the reduction. There isn’t much in the governor’s (proposed) budget in terms of property tax relief for families, so we see this as a way to benefit both businesses and families.”

The additional revenue would then be distributed to the state’s cities and towns via the Treasury Department using a formula based on a municipality’s size, the amount of property taxes paid in a given community and an equalization of the value of property Feltes, said. The bill is supported by the New Hampshire Municipal Association, which sent representatives to testify on behalf of the bill in committee, according to the association’s Feb. 15 “Legislative Bulletin.”

“This bill accomplishes two things,” said state Sen. Jon Morgan, D-Brentwood. “We’re halting further cuts to the business profit tax and business enterprise tax, and prioritizing who should get tax relief. I can’t tell you how many individuals who I have spoken with who tell me they are getting priced out of their homes because their property taxes are too high.”

The benefit to municipalities would be significant. For instance, Exeter Town Manager Russ Dean said Exeter previously received roughly $280,000 in additional revenue sharing from the state to offset the property tax rate of 7.25 percent at the time, before the practice was ended by the Legislature. Another bill before the Legislature would restore 15 percent of state contribution to municipal employee retirement costs, meaning the state would kick in nearly $270,000 out of Exeter’s total obligation of nearly $1.8 million in 2019.

″(State retirement contributions), plus general revenue sharing would mean approximately $550,000 annually back to us,” Dean said. ”(It’s) a significant chunk of money which would be used to lower the tax rate.”

Dean added revenue sharing would potentially benefit a community undergoing a major capital project such as Exeter’s new $53.8 million wastewater treatment facility, which the town receives 5 percent of the project cost, or $2.7 million. Dean said if the contribution was increased to 20 percent, it would result in an additional $8 million to $10 million reduction in cost to Exeter ratepayers.

Morgan said the legislation was filed in part as a response to Sununu’s business tax cuts, which Democrats have argued continued to downshift costs onto cities and towns in order to subsidize the tax benefits to businesses and large corporations.

“The assumption is the (economic) stabilization has already occurred. This bill is not costing the state any additional money and it is not a tax increase,” Morgan said. “We’re making sure hard-working Granite Staters are getting the property tax relief they need, rather than the tens of millions of dollars we’ve given away to the wealthiest out-of-state corporations by cutting the business profits tax and business enterprise tax.”

In response, a representative from Sununu’s office said the governor does not support SB 301 as currently written, and viewed it as an attempt to undermine his agenda in pursuing lower business taxes for New Hampshire companies, which he attributed to the economic growth the state has enjoyed under his tenure.

“A healthy business cycle is predicated on certainty. Our businesses small and large order many of their affairs according to our government’s long term plans - it is irresponsible governance for the Legislature to ping pong core tax policies every two years,” Sununu said in his state budget address Feb. 14. “High taxes come at the high cost of the erosion of our state’s economic competitiveness. We should not, and cannot turn back now.”

Sen. Bob Guida-R, Warren, also a member of Ways and Means, said because SB 301 halts further reductions in the business profits and business enterprise taxes that statutorily went into effect Jan. 1 under Sununu’s tax cuts, the proposed legislation does amount to a tax increase. He said he was in favor of restoring municipal revenue sharing, but did not provide a specific policy proposal on how to do so until the Senate voted on other bills that together added $10 million in spending outside of the proposed budget.

“I believe we can do both in leaving the tax reductions in place and give money back to the municipalities with a solution that’s much less onerous on businesses,” Guida said. “The economy isn’t broken, it’s roaring. I say if it isn’t broken, don’t fix it. Businesses are operating on 3-, 5-, 10-year projections and those are based on certainty.”

Basics of Starting a Franchise Business

Buying a franchise is a choice that a lot of first-time entrepreneurs opt for in order to provide their business with a head start. On the one hand, running a franchise provides you with an independence that you've always dreamed of, while, on the other hand, it gives you an assistance of having a major brand name behind you. This alone is what provides franchises with a somewhat higher success rate than regular startups and small businesses. Combine this with the fact that buying a franchise often costs less than starting your own business and you'll see no reason why not to do so with your next idea. Here are several basics for you to consider before doing so.

Ask some basic questions
The first thing you need to do is inquire a bit about the franchisor that you're about to reach out to. You need to know what they are like, how much will it cost and how much time it will take until your business starts making some results in this particular industry. Other than this, you need to answer some less general questions like what are your keys to success, what is your end game and what are the risks. Due to the fact that you're starting a franchise, it's also worth asking what kind of help you can expect from a franchisor.

Get the funding
In the previous section, we mentioned the issue of cost, so, now that you know how much money you need in order to get everything started, you can look for a way to secure funding. Going to a bank or a credit union is the most logical first step, yet, there are other ways to tend to the issue of crowdsourcing. Keep in mind that doing so is an option even on a limited budget. For instance, dipping into your 401(k), looking for SBA loans and other methods might be worth taking a closer look at.

Look for some professional guidance
The next thing you need to understand is the fact that starting a franchise is a lot less unique process than starting an independent business. While this statement may have a negative connotation, this is actually a good thing, seeing as how a first-time entrepreneur can get a business model to follow. In fact, some companies are so well-versed in franchising that they have a specialized team that helps franchise companies stand on their feet. This is one example of the perk of having a protection of a larger brand name behind you.

Different franchisors offer a different kind of assistance but this shouldn't hold you back as an entrepreneur. Think about it, as a first-timer, a newcomer to the business world, you're already at a disadvantage. This means that you need all the help you can get. So, prior to starting out, make sure to inquire what kind of help is the franchisor willing to provide. This may end up being a huge factor for your franchise's future success.

Standard business expenses
Keep in mind that, while you're enjoying the protection of someone else's name, you're still running a business on your own. This means that you have to provide the location, the equipment, the signs, the inventory, and the working capital, on your own. Nonetheless, your franchisor might be willing to help. You see, the way in which you run your business affects their reputation as well, so they might offer you a slight “allowance” to do some improvements on the infrastructure of the building. This will help with the uniformity of the business which, down the line, benefits their brand. Also, while this will help you out financially, it won't be enough on its own for any kind of major business operations.

Don't postpone it
Sure, a grand opening is a huge deal and some guides suggest that you might even want to spend as much as 20 percent of your first year's marketing budget on it, however, timing is what matters the most. Don't postpone it, due to the fact that your business needs to become operational (and profitable) as soon as possible.

Conclusion
Of course, it's only fair that we mention the fact that starting a franchise also has some downsides. First of all, you're limited in form of creativity, due to the fact that you can't deviate from some features of the business model. Moreover, a controversy or an issue plaguing another franchise may affect your business even if you're doing everything right. Nonetheless, if you pull off everything that we've just talked about, you might find that it's all still worth it.

Burlington hopes to phase out tax to attract business

BURLINGTON, Vt. (WCAX) It's no secret it can be expensive to live and shop in Burlington. But there's an extra cost you may not even realize you're paying. Every time you shop at a store in Burlington, a business tax is being passed on to you. Business owners say they have to raise prices to pay the antiquated tax. But as our Neliana Ferraro learned, the Burlington City Council hopes the tax won't be around for much longer.

"I mean, the list of taxes is as long as your arm," said Mark Bouchett of Homeport in Burlington.

Business owners in Burlington are weighed down by a lot of taxes and fees. Homeport on Church Street, for example, has to pay an additional 1 percent sales tax, a meals and rooms tax, a Church Street Marketplace fee.

"The reason why we complain about them is not because we don't want to pay them; we don't pay them. Our customers pay them," Bouchett said.

That sometimes means upping prices for you.

All businesses also have to pay the business personal property tax. Owners have to tally their assets-- that's computers, counters, signs, display cases, dumpsters, heavy equipment and even things as small as calculators.

"It's a tax that's difficult for businesses to comply with and we get huge complaints from our business community about this," said Mayor Miro Weinberger, D-Burlington.

The Burlington City Council hopes to phase out this business personal property tax between now and 2026.

"Across Vermont and across the country, you have seen municipalities move away from this particular tax," Weinberger said.

The tax can sometimes discourage businesses from coming to the Queen City and staying competitive.

"My son just closed a business down the street for just these types of reasons," Bouchett said.

He had to make a tough choice to close Juice Box in Burlington and keep the one in Berlin.

Bouchett says jumping to another city is always an option for Homeport, too.

"It's always on the table," he said. "It's on the table for us every day."

Many communities don't collect this tax anymore. There are only 30 towns in Vermont that still have it in place. In Chittenden County, only Winooski and Burlington make businesses pay the tax.

There will be public hearings over the next few weeks where you will be able to give city leaders feedback on the proposal. They'll make adjustments and bring the final plan up for a vote on Town Meeting Day.

Top Five Small Business Mistakes And How To Fix Them

Our business culture revolves around studying successes. Read any tech blog and you will drown in a sea of stories of founders who made it. Therein lies the survivorship bias.

As entrepreneurs, we over-attribute success to things done by the successful. We need to also study the strategies that did not work to make better business decisions. Let's take a short break from the winners and learn from the wisdom of what Nassim Taleb, author of The Black Swan, calls the “silent grave.”

The five mistakes below are so common that every entrepreneur has made at least one of them.

1. Not Knowing Who Your Best Customers Are

When you're starting a new business, any customer is a good customer. But as you grow, you need to be more strategic by looking at your data.

Identify who your best customers are by looking at return on investment (ROI), who you love working with and which people are easy to work with. Factor in hidden costs like customer service resources for those customers.

Keep an updated list of customer personas that you revisit at least once a quarter. The smartest businesses owners understand their ideal customer is always evolving.

Your goal then becomes to adjust your marketing efforts to bring in more prospects that match your ideal persona.

Pro tip: The trick is to make sure to create, share and solicit feedback on these marketing personas. You want to do this efficiently. Here is a great example of how one company creates these personas.

2. Blowing Through Your Marketing Budget Too Fast

Even the most seasoned tech entrepreneurs fall into this trap. I have seen far too many small businesses do a little keyword research, set up some Facebook Ads and call it a day. Sure, the ads received clicks. But they did result in customers?

Do small tests and keep an eye on ROI.

Identify two to three marketing channels that you want to test. Allocate a small budget to these tests and track conversions to ensure they are profitable. Only then scale them to spend your budget on channels that worked.

Pro tip: Always have retargeting campaigns set up for prospects that visit your website. The cost to keep those campaigns going is cents on the dollar as compared to your base ad campaigns.

3. Not Understanding The Importance Of Having Working Capital

Far too many small businesses defer looking at the finances on a regular basis. Unless you raised $100 trillion dollars from venture capitalists (VCs), your leeway for throwing things at the wall to see what sticks is much shorter. Without the needed working capital, a business owner won't be able to grow their company or pay bills, employees and vendors.

Identity if you need extra working capital besides the cash you already have. If you do, you can either trim down on the needed resources, seek out investors or apply for a business loan.

Each option has its pros and cons.

Getting a business loan can seem overwhelming at first. There are many options you need to be aware of. The biggest benefit with a business loan is that you maintain full ownership of your company and call all the shots.

Pro tip: Get your financial documents in order prior to seeking funding. That will speed up the process so you can focus on the business.

4. Hiring The Wrong People

Be aware of the halo effect: The pitfall of liking a potential candidate based on a few traits while glancing over red flags and missing skills.

Your job as the owner of a tech business is to hire people smarter than yourself.

Craft job postings that are unique to what you need in a candidate and fits your company's culture. Don't copy another company's job description.

Pro tip: Always ask for references and follow up with them. Small businesses often overlook this when starting out. Reference checks remain one of the best sources of information about candidates.

5. Underpricing Your Product

Speak to any small business and 9 out of 10 times they will say, "I wish I charged more from the start." You should test out different pricing strategies to maximize profitability.

You will also see a side effect of increasing the prices of your software or services -- better customers. The lower your prices, the more likely you are to attract prospects that eat up customer support resources. Contrary to common belief, customers who are willing to pay more money are often easier to work with.

Pro tip: Use an A/B split testing tool like Optimizely or VWO to safely try out different pricing and conversion rates.

Conclusion

Every business owner makes mistakes. The key is being aware when something is not working and taking conscious steps to fix it. Even though every industry is different, most problems you come across have been solved for in the past by another entrepreneur.

Failure serves as the greatest lesson in business and in life. If you remain persistent about recognizing and proactively fixing problems, the world is your oyster.

Where friendship met business

On a Saturday night in late September, hip-hop artist Michael Casper was set to play his first show in an inconspicuous house on 36th Street. His managers, sophomore music industry students Sean Lewow and John Van Liere, had carefully crafted the moments leading up to Casper's performance, even changing the set list so that certain friends could catch Casper's performance before leaving. But right as Casper was supposed to take the stage, he was nowhere to be seen.

Lewow sprinted down 36th Street searching for Casper, who had gone to the grocery store, while Van Liere tried to stall the lineup and persuaded the audience to wait. At the time, the stress sent them both into a frenzy. But recalling the incident several weeks later, in between bouts of laughter, Lewow and Van Liere saw it as just another part of the job — running their own A&R company, Bottom Feeder Management.

"We were just yelling at each other all night," Van Liere said. "At the end of the day he played a great set, and we all had a really fun time. We got mad at each other for a second and then five minutes later we're back at it talking like normal. That's how it goes."

Lewow and Van Liere met at a parents' mixer for music industry majors at the Thornton School of Music and immediately realized that they shared similar goals and visions. In high school, both Van Liere and Lewow put on shows for charity, and Van Liere also admired his partner's work ethic, which he said set him apart from others in the music industry.

"Everyone always has lofty goals and aspirations, but a lot of people don't actually do anything about [them]," Van Liere said. "We instantly gravitated toward each other because we were both really doing it."

Lewow and Van Liere began bouncing business ideas off of each other until they settled on a promising one called the "Thornton Collective." Initially, they aimed to leverage Thornton's connections to help student musicians release their work in the real world, but soon found that many talented artists outside of campus who were also looking for representation.

"And then we were like, why are we doing this through the school? We can just do it ourselves," Van Liere said.

Thus, Bottom Feeder Management was born. The company's six-person team comprises Lewow, Van Liere, three videographers from Ouros, a creative collective and an audio engineer. Currently, managing two artists — Casper and Joe Avio — is a full-time job. The team worked on Casper's debut single "Teenage Apathy" and his upcoming music videos, as well as Avio's debut album release in November.

"We want to create someone that has an aura, a name that people recognize, and can use that status as more of a cultural figure to do good," Van Liere said. "We're not creating music — we're creating worlds."

Understanding the artists as friends and individuals allows Lewow and Van Liere to tap into the artists' most authentic, nuanced personas. Their focus on building relationships trumps the goal of creating a hit track, which is why they spent months getting to know Avio and Casper before agreeing to work with them.

"I'd say for us it's very much a relationship game," Lewow said. "At the end of the day, they're our best friends."

However, that focus on personal relationships can cause tension.

"It gets tough, but only because people are … really passionate about waking up each morning and getting involved in this stuff," Lewow said.

Despite the stresses of the job, they're able to work through difficult moments — like the incident at Casper's first show — by prioritizing their friendship above all else.

"[We're able to look past these instances] because at the end of the day it's not important," Van Liere said. "If [Casper is] five minutes late to his set, we're freaking out in the moment, but then afterward … why would I let this stupid thing carry on?"

Lewow and Van Liere are in the same fraternity, live in the same house and share the same social circle. Despite this physical proximity, they say their ability to cooperate stems from their complementary personality traits. Van Liere handles internal logistics, working on production and creative direction, while Lewow handles external logistics, such as interfacing with professionals and in-house public relations.

Over the past semester, they've had to adapt to the changing music climate brought on by Spotify and other music streaming services, as well as learn to recognize and overcome their own personal flaws.

"We started with a blank piece of paper, and we're drawing a roadmap for ourselves," Van Liere said.

As the company evolves, Van Liere and Lewow's goal is to make Bottom Feeder live up to its name — harvesting talent at the figurative bottom of the barrel and looking for up-and-coming artists whose careers could benefit from professional representation.

"We want to get [Casper] out of … working 9 to 5 every day at a Chinese restaurant," Lewow said. "He's the most creative, just beautiful human you'll ever meet. And Joe, he's slaving away at school … but at the end of the day, he needs to be a professional musician."

The phrase "at the end of the day" is one that Lewow and Van Liere use often. Perhaps the defining aspect of their company is their clear, unadulterated understanding of their motivations.

"These artists have become my livelihood," Lewow said. "At the end of the day, they are our very close friends and that gives us that added attachment to them … these people deserve to succeed, and it is our job to help them get there."

7 Ways I Overcame Mommy Guilt to Start My First Business

Being a working mom and starting your own business are arguably two of the most stressful and rewarding accomplishments of a woman's life. Combine the two by starting your own business working from home and you've got a whole new set of emotions on hand, one of which is likely to be "mommy guilt."

It's that overwhelming feeling when you are working extremely hard to start your business and you feel like you're neglecting your responsibilities as a mom. I know the feeling all too well -- I have four children under the age of 10 and I started, and still successfully run, my business from home.

Was it easy? Not at first. My mom guilt was at times overwhelming, but the good news is that I found ways to overcome that guilt by creating balance with time management, planning and even involving my children in the business.

"Lean in" to distraction.

Inevitably, when you're in "go" mode (aka highly productive time) someone you love will try to get your attention and the quick answer is usually "Honey, not now, I'm busy" to try to get the distracting person to go away as quickly as possible. When these distractions are caused by your children, it can cause increased mommy guilt and resentment.

For me, I find the more I resist the distraction, the longer it lasts. So, I decided to "lean in" to the distraction. If someone wants to snuggle with me, I give them a great big hug. If someone has a question, I give them my full attention and address the question and then we both happily return to what we were doing.

If I'm in the middle of something I really can't stop doing, I'm up front with my children about it. We make a plan together for a later time when we can engage in what they needed in that moment.

Make a game out of quiet time.

One of the biggest challenges I've experienced has been trying to figure out how to keep the kids quiet when I'm on the phone. They are, after all, young kids who like to have fun. I made a sign for my office door, but I knew the two younger kids weren't going to read it and understand, so I made a game out of learning what the sign meant.

The "Mom's on the phone game" consisted of us walking up to the door together, seeing the sign, covering our mouths and tiptoeing away, all while seeing who could be the quietest. Gamification for the win.

Make a to-do list for work and home.

Prioritizing your to-dos with a clean, effective list can help you manage what needs your attention the most throughout the day. Often, people make to-do lists that focus on either business or home life, but when you work from home it can be hard to differentiate between the two.

Instead, I suggest combining your lists. Consider adding things like grocery shopping, going to the bank or walking to check the mail. These home items are simple things that can be done with the kids and provide quality time together.

Create million-dollar moments.

Quality tends to be more important that quantity, and that's true when it comes to relationships with family, especially children. Even if we spend every waking moment with our kids, if we're stressed out and resentful all the time, are we really doing them a service?

Looking back, have you ever had a moment with the kids where you might say "I wouldn't trade that for a million bucks"? If you reflect on some of your favorite moments, you'll start to notice a common thread in them. Maybe it was a moment where everyone was getting along, or when you were enjoying something beautiful outside.

When you know what these moments are, you can start replicating these experiences more often. Even if all you have is five minutes, you can still inject that spirit of warmth, acceptance and playfulness into time with the kids. When you plan your schedule for work time, be sure to include a conscious effort to plan moments with the family as well.

Involve the kids in your business.

It may sound strange but involving my children in the business is one of the biggest ways I overcame my mommy guilt. My oldest has an entrepreneurial spirit and a wealth of creative ideas, so I started involving him in business decisions or brainstorming sessions whenever the opportunity came up. By involving him, he feels like he is part of what I am creating.

Remain sane.

Become a success magnet by staying sane at all times. If you break down, the business will break down. If you're raising a family and building a business at the same time, the stakes are high. Your sanity, peace of mind and general well-being are the greatest predictors of your success.

One of the best things you can do to maintain your sanity as a parent is to stay focused on your own business and quit trying to change your kids. Love them while they learn from their mistakes.

Turn parenting into a business asset.

Parenting can be a fantastic business school because as a parent you're always selling. You have to figure out what makes something attractive to someone else, and it pays to notice what works and what doesn't.

I believe the most effective thing you can do as a parent is the exact same thing you can do as a business owner: Be in tune with what your kids (or customers) want most at any given time and figure out how to effectively communicate that what you're offering is going to get them what they want.

Overcoming mommy guilt is something that can take some time and practice until you find a rhythm that works for your life. During all of this, don't forget to take some time for you -- step away from the computer, turn off your cell phone alerts/notifications and enjoy the day.

Business owner complains poor mail service hurts business

While most concerns about the mail service in the Lake Charles area have come from residential areas, a local man says it's causing problems for his business.

At Southland Coins they buy and sell precious metals, rare coins, and collectibles.

Owner Malcolm Self explains his business relies on the mail service.

“The mail system is vital to my business, as we've gone more to a mail order type system. 99 percent of my business is mail order. So, that's the lifeblood of my business,” said Self.

Self is convinced the mail system is broken.

“We get mail every day. So when you don't get mail for two days, we could easily be talking about over $100,000 in checks that should be in the mail that we get, and if we don't have that, obviously we can't buy product from our clients,” Self said.

Self says it's been an issue for years and he's complained as recently as last week.

"When we went down there to complain one of the managers, his answer to our problem was that the carriers are just lazy,” Self said.

Self says he does not think the problem is with the carriers.

“I find most carriers are like salt of the earth. They're good people, they're hard workers, they want to do the right thing. So, I think the real problem may be higher up,” said Self.

Self does as much business as possible over the internet, but you can't send a package over a computer.

“We've noticed a dramatic problem with the packages we ship. We shipped a package several months ago to Pensacola, Florida that took over 30 days. And when you're dealing with precious metals that people have paid for, they want to receive it promptly and not wait 30 days,” said Self.

As the problems continue and solutions appear hard to come by Self wonders if the answer may be privatizing the mail.

Self says other dealers around the country have similar problems.