TAXES AND THE HOME-BASED BUSINESS

Zoning regulations effect home-based businesses in many residential areas of Arkansas. These regulations were established for the protection of the homeowners and the neighborhood.

For example, the Article VII District Regulations Section 7-101 of the city of Little Rock reads:

The residential districts established by this Ordinance are designed to promote and protect the health, safety, morals, convenience, order, prosperity and other aspects of the general welfare. These general goals include, among others, the following more specific purposes:

1. To provide sufficient space at appropriate locations for residential developments to adequately meet the housing needs of the present and expected future population of the metropolitan area, with due consideration to the need for a variety of choices in site selection.

2. To permit improved movement on the public street systems and efficiently utilize existing public streets, and, as far as possible, to mitigate the effects of heavy traffic and more particularly all through traffic, in residential areas.

3. To protect residential area against undue congestion, as far as possible, by regulating the density of population, intensity of activity, and the bulk of buildings in relation to the surrounding land and to one another.

4. To provide for access of light and air to windows and for privacy, as far as possible, by controls of the height of buildings and other structures.

5. To promote the most desirable use of land and building development, to protect the character of each district and its suitability for particular uses and to conserve the value of land and

In most rural areas in Arkansas, there are no zoning regulations at all. In most municipalities, there are some restrictions; but in a few areas, almost all forms of home-based businesses are illegal.

The Little Rock Code states under the special uses section (5) "The following special uses may be permitted subject to the criteria contained in Section 4-102.1 and approval of a special use permit by the planning commission."

Section (6) Home Occupations reads:

1. Home occupations shall be permitted that will not:

a. Change the outside appearance of the dwelling or provide product display visible from the street.

b. Generate traffic, parking, sewage or water use in excess of what is normal in the residential neighborhood.

c. Create a hazard to person or property, results in electrical interference or becomes a nuisance.

d. Result in outside storage or display of any material or product.

e. Involve accessory buildings.

f. Result in signage beyond that which may be required by other government agencies.

g. Limited to 500 square feet in area, but in no case more than 49 percent of the floor area in a dwelling.

h. Stock in trade shall not exceed 10 percent of the floor area of the accessory use.

2. The following are permitted home occupations provided they do not violate any of the provisions of the previous paragraph:

a. Dressmaking, sewing and tailoring

b. Painting, sculpturing or writing (artistic endeavors).

c. Telephone answering service or radio monitoring service.

d. Home crafts such as model making, rug weaving, and lapidary work.

e. Tutoring limited to two students at a time.

f. Music instruction limited to two students at a time.

g. Home cooking and preserving.

h. Computer programming.

I. Clock or watch repair.

j. Personal or home care products marketing without stock in trade on premises.

3. The following are prohibited as home occupations:

a. Barber shops and beauty shops.

b. Animal hospitals.

c. Dance studios.

d. Mortuaries.

e. Nursery schools.

f. Private clubs.

g. Small appliance repair shops

h. Restaurants

I. Stables or kennels.

j. Animal grooming.

k. Engine or motor repair shops.

l. Paint shops.

4. Any proposed home occupation that is neither specifically permitted by Paragraph 2, nor specifically prohibited by Paragraph 3, shall require an accessory use permit and be granted or denied by the Public Works Department upon consideration of those standards contained in Paragraph B. 6. Appeals from determinations of the Public Works Department shall be to the Board of Adjustment. Any proposed use requiring employees who are not residents of the dwelling shall be approved by the Board of Adjustment prior to issuance of permits.

Finding out what restrictions there are is one of the first steps in developing a plan for a home-based business. While in some instances, zoning authorities may adopt the practice of looking the other way, this is a shaky foundation on which to operate a business! Operating outside the legal ordinances means that at any time, anyone - a neighbor, or even your competition - may file a complaint and put you out of business.

It will be wiser to work through the legal system before there is a problem. First, find out what your zoning regulations are. If they are too restrictive for your business, then develop a plan for making a change.

Get the name of as many other home-based business owners in your area as possible, and discuss with them support for a zoning ordinance change.

Send for model zoning ordinances to help you in your planning. One source is the National Alliance of Home-Based Businesswomen, P.O Box 306, Midland Park, NJ 07432. Cost is $2.

Find out who is on the planning commission. Don't hesitate to talk to them about your needs. Develop a support network.

It will take time and patience, but change often takes time. Your efforts will usually be worth the effort.

Contact the Zonning/Planning Commission in your city for further information on zoning. If your business will be located in the Little Rock area, contact:

Zonning Commission
723 West Markham
Little Rock, AR 72201
(501) 371-4844