Business owner labels ‘sin tax’ a cash grab

pg02-n-tax tnJesse Winter, Centretown News
Mark Boushey says businesses that sell tobacco products are an easy target for city council.
Ottawa’s city council has put adult entertainment parlours, body rub parlours and tobacco vendors on the top of its hit list for fee increases.

In the 2016 draft budget, the community and protective services committee proposed a 100 per cent increase for business licence fees in each of these three categories.

In 2015, it cost $3,285 for an adult entertainment parlour owner’s licence, but next year it’s going up to $6,570. “They think it’s going to run us out of business. That’s obvious, that’s what they think it’s going to do,” says Carmelina Bentivoglio, the co-owner of BareFax Gentleman’s Club located in the Byward Market. 

Coun. Diane Deans, the chair of the community and protective services committee, says the fees have been raised on a “cost recovery basis.” 

The draft budget document states the adult entertainment parlour fee is “increased by 100 per cent to reflect increased enforcement and administration costs and public safety, consumer protection and nuisance control considerations.” 

Bentivoglio says a media report stating city staff have been hearing about touching in private rooms in adult entertainment venues doesn’t apply to her club. “There’s no way that ever came from this club,” says Bentivoglio, adding, “there’s other clubs out there, so I can’t talk for them, but I know what goes on here. I know what goes on under my roof, you know.”

Bentivoglio also confirms there are no plans to close down BareFax due to its fees doubling, but she says if it, or any of the other four adult entertainment parlour locations in Ottawa shut down, they would be gone for good. “This club here is grandfathered for this location. Once you lose your licence, or close down, you’re done. You cannot open another club,” says Bentivoglio.

Licence fees for body rub parlours in the draft budget increase from $623 to $1,246. 

A Centretown News investigation earlier this year, revealed two massage parlours in the city allegedly offering sexual services.

Several massage parlours declined comment. 

The city’s draft budget document states the only reason for doubling the body rub parlour fee is because it hasn’t increased in more than 10 years. 

The final category to receive a 100 per cent licence fee increase is tobacco vendors. No explanation in the draft budget documents is given for the rate going from $403 to $806. 

“My initial reaction is it’s a cash grab,” says Mark Boushey, co-owner of Boushey’s Fruit Market at 348 Elgin St. 

Tobacco is sold at the local fruit market. Boushey says he believes his business and the others with doubled licence fees are easy targets for city council. “They know they aren’t going to get too much of a negative reaction if they tax those sins,” says Boushey.

Anthony Di Monte, Ottawa’s acting general manager of emergency and protective services, denies the increase for the tobacco vendor fee is a cash grab. “We can’t cash grab, the province doesn’t allow it. The only responsibility we have is we’re allowed to recover our costs,” says Di Monte.

Centretown News made requests over a week and a half to get Somerset Coun. Catherine McKenney’s thoughts on the fee increases, but she was unavailable for comment.

Business owners impacted by the fee increases had the opportunity to express their frustrations to the community and protective services committee at its budget meeting on Nov. 30. 

Forty delegations showed up, but no one from the adult entertainment parlour, body rub parlour or tobacco vendor industries spoke.

Despite the fee increase, one tobacco vendor in Centretown acknowledges this is the reality of the business she’s in. “We’re obviously not happy about a 100-per-cent increase. It seems kind of much to do a full 100 per cent, but we do understand the cost of business does go up every year for us in all areas, so we do expect that there will be increases,” says Christa Blaszczyk, a co-owner of Mags and Fags at 254 Elgin St.