Just imagine. You’re a writer. You sit in your home in front of a computer. The only “impact” to your community is that you live there, and likely transfer files by internet. Or maybe mail.
For that, you are determined to be a business and must pay a business tax.
The Institute for Justice explains that’s the fight that has come up in Charlottesville, Virginia, and its surrounding Albemarle County.
The actions have prompted the IJ to file a lawsuit against the city and county over the demand.
Corban Addison got a letter a few months ago demanding payment of thousands of dollars for a business license and its affiliated taxes.
“Corban does not run a business or a storefront of any kind. He is simply a novelist who lives in Charlottesville,” IJ officials explained.
“The city and surrounding Albemarle County are both targeting freelancers like Corban to raise revenue, but they’re not doing so evenhandedly. While the city and county punish freelance novelists, newspapers and magazines are exempt from the tax. That unequal treatment violates the First Amendment, which is why Corban and novelist John Hart are joining forces with the Institute for Justice to stop this unconstitutional tax and keep their hard-earned income,” the lawyers explained.
“Charlottesville taxes freelance writers while the traditional press is exempt. That’s unfair and unconstitutional,” IJ Attorney Renée Flaherty said. “Many writers pen novels and newspaper articles in the course of their career. In Charlottesville, one of these activities is charged a business license tax and the other is not.”
Typically, business licenses and taxes are charged to provide the infrastructure they must have.
Roads and parking lots for customers, and the like.
But for Corban and John, there is no infrastructure; only the places they live.
“I’m not a business,” said John Hart, who specializes in literary thrillers. “I make a living off pure imagination. That’s it. It’s me at this table with an old laptop. I could do this same job sitting in a tree. I love living here, but I don’t understand why the county feels they should make money off me this way.”
IJ officials explained Charlottesville officials have written their business license tax regulation so broadly they claim the right to tax anything to do with any “repair, personal or business services.”
“There’s no mention whatsoever of freelancers of any kind in this law. It struck me that it wasn’t intended to cover me, but now the city has decided to come after me,” Corban said.
The IJ is challenging not just on First Amendment grounds but also for the rule being unconstitutionally vague.
“The First Amendment covers all speech equally, and doesn’t discriminate against any kind of speaker on any basis,” Corban added. “The First Amendment protects my writing as much as it protects newspapers and magazines.”
The two writers are bestselling novelists.
