With outside taxi companies fuming over Innisfail's new Business Licensing Bylaw the town not only refuses to retreat, it's now setting its sights on out-of-town realty companies.
“I am actually in the process of doing that as we speak. I do have a list of realtors. I will be issuing a letter stating that they do require a business licence,” said Heather Whymark, the town's director of corporate services.
She said up to six real estate companies, five from Red Deer and one from Sylvan Lake, have been reported to her office with questions on whether they have business licences to operate in town, including listing properties.
“I imagine there is more, once I start digging,” said Whymark. “It is going to go back to the company on these. We are not going after the individual realtors.
“It was the same with the taxi company one,” she added. “The individual taxi driver did not need the business licence. The actual company did.”
Judy Ferguson, executive officer of the Central Alberta Realtors Association (CARA), said the issue of licensing in outlying communities has been studied many times in the past by her industry, with an ultimate ruling from the provincial government that realty companies or their realtors must obtain a licence from the community they want to do business in.
“The Real Estate Council of Alberta took up the matter with the Alberta government, arguing that because brokerages and realtors are licensed provincially they should be exempt from such licensing fee requirements,” said Ferguson. “Unfortunately Alberta Municipal Affairs did not agree, and the provisions as stated in the Municipal Government Act prevail.”
Ferguson added Innisfail's bylaw is now common practice in many other municipalities across the province.
“If you want to do business in a community you have to hold a business licence in that community,” said Ferguson, adding she will raise the licensing issue with CARA members. “I will inform the membership that if they are going to list properties in a community they make sure they hold, or your brokerage holds, a business licence.”
The town amended its Business Licensing Bylaw last summer with council giving approval in August. The biggest change was to finally give the bylaw enforcement measures, particularly against out-of-town businesses like taxi and real estate companies that have been operating in town for years without securing a licence. The amended bylaw also altered some fees.
The issue with out-of-town businesses came to a head in April when an Associated Cab taxi was approached in town by an Innisfail peace officer and was asked to produce a business licence. The cabbie could not produce the licence. He was given a warning and returned to Red Deer without his passenger, who was told he couldn't continue his ride with the cabbie. The incident triggered a media firestorm and strong criticism against the town.
“I know the town is taking a little heat and I am surprised at that because it is really just an even playing field for the local commercial people. I was surprised with the way the taxi company reacted, more so than our residents,” said Whymark. “Some of the information was incorrect. They can pick up in Red Deer and deliver here without a business licence. It is only if they pick up here, as the start of their destination, when they require the business licence. We are not talking about hundreds of thousands of dollars. It is a simple solution.”
The cost to out-of-town businesses, including cab and realty companies, to buy a licence is $300. If they are not in compliance they can be issued violation tickets. For the first offence, there is a fine of $250. For the second offence the fine increases to $500. The third offence carries a $1,000 fine.
