Auto dealer fights West Palm over 602% tax increase

The Palm Beach Post ^ | 11-26-09 | Andrew Abramson

[robert561]

WEST PALM BEACH — Even for a business that sells $250,000 Rolls-Royces, a tax increase of 602 percent is too much.

So Braman Motorcars is fighting a change that West Palm Beach made to its business tax in 2007, and is refusing to pay a higher rate this year than it did before that change.

And the city commission is considering relenting. If it does, six of the city's largest retailers may be getting a rebate, thanks to Braman.

"I don't feel this was on purpose, but as a result of the new ordinance, we were severely penalized," said Vince Cerone, chief executive officer of Braman. "The difference is astounding.

"As a car dealer we have high-end products and therefore it unfairly penalizes us."

That's because the 0.46 percent tax rate is based on the value of inventory at each location of the business within the city.

Until 2007, companies such as Braman were protected because the tax, formerly called an occupational license fee, applied only to the first $2.1 million of inventory, meaning that no business in the city had to pay more than $9,923 per location per year.

With the elimination of the cap, 15 companies, primarily auto dealers, saw a big tax increase in 2008.

Braman went from owing $39,690 for its four locations to owing $278,467 under the new tax, including a jump from $9,923 to $156,751 at its BMW/Rolls-Royce/Bentley dealership at 2901 Okeechobee Blvd.

[alfa6]

Ya I had forgotten about Mission, he he.

I talked with a developer about the Merriam deal about 6 months ago. He stated that the reason for ther Merriam fiasco was that the city tried to act as the developer and did not have anybody lined up prior to the start of the work.

According to this gent that is a cardinal no-no NOT to have a couple of anchor tenants. I guess Field of Dreams only works in Hollywood, eh?

Regards

alfa6 ;>}

[Lancey Howard]

Huh.. This company is likely related to the former owner of the Philadelphia Eagles, Norman Braman.