Takoma Park raises funds by taxing children’s business fair

most lucrative economic engine: the annual Children’s Business Fair.

The decision to tax the Children’s Business Fair was reached after intense budget negotiations, where various proposals were put forward, such as taxing rain barrels, issuing leaf pile permits, and creating a city-sponsored cryptocurrency called “Ro$coin.” Ultimately, officials settled on taxing the profits of children’s pop-up businesses as the least controversial option.

Under this new policy, all participants in the fair must register their businesses with the city, provide quarterly financial reports, and pay a fixed tax rate of 18.75% on all revenue generated from selling handcrafted items like bracelets, wallets made of duct tape, and homemade treats.

One city spokesperson clarified that the objective is not to discourage entrepreneurship but to ensure that young business owners contribute to infrastructure projects in the city. This includes initiatives like renovating the Piney Branch Elementary School pool, which could benefit from additional funding.

Parents had mixed reactions to the new tax. While some saw it as an educational opportunity for their children to learn about tax compliance and business expenses, others expressed concerns about the financial burden it may place on their kids’ budding enterprises.

Children who participated in the fair were less enthusiastic about the tax, with some considering outsourcing their production to neighboring areas like Silver Spring to avoid the additional expenses. Young entrepreneur Jimmy Gleason, donning a hat that read “No Taxation Without Representation,” voiced his frustration at the mounting costs of doing business in Takoma Park.

City Manager Robert DiSpirito defended the tax as a positive measure for the community, highlighting the revenue generated from the fair as a means to support essential services. He even joked about the possibility of relaxing child labor laws to make the most of this newfound revenue stream, referring to it as a “public-preteen partnership.”

In response to the tax, a group of young business owners formed the lobbying organization “Sligo National Association of Capitalist Kids” (SNACK PAC), aiming to advocate for the rights and interests of children in the business community. Members of SNACK PAC expressed their disapproval of the tax, chanting slogans like “No taxation without representation,” emphasizing that children should have a voice in decisions affecting their businesses.

Despite the backlash from young entrepreneurs, adult taxpayers approved of the new tax, viewing it as an opportunity for children to learn valuable lessons about responsibility and civic engagement. The 18.75% “Youth Enterprise Responsibility Fee” was seen as a fair way to ensure that children contribute their fair share to the community.

As the debate over the Children’s Business Fair tax continues, Takoma Park remains committed to upholding its progressive values while addressing budgetary challenges in innovative ways. The city’s decision to tax children’s businesses reflects a broader strategy to balance its budget without resorting to unpopular property tax increases, setting a precedent for other municipalities facing similar fiscal dilemmas.