Harvey Businesses Cry Foul as City Closes Lots Over Tax Disputes!
In the heart of Harvey, Michael Kinsch, proud owner of Michael Motors, is facing an uphill battle against the very city he calls home. With his used car lot buried under years of unpaid property taxes, the city recently decided to turn a blind eye to his business license renewal, leaving him in a bind since April.
Despite the odds, Kinsch kept his doors open until late September—only to be met with an unexpected twist: the city installed massive concrete barricades, effectively blocking access to his lot. “How is this enriching our community?” Kinsch lamented. “They’re pushing me out, and I can’t just leave my inventory here; it’s at risk of being ruined.”
Michael Motors is just one of 465 businesses in Harvey caught in a tax delinquency web, collectively owing over $12 million in unpaid taxes as of 2023, as stated by a city spokesperson. Recent city regulations allow for the denial of operating licenses for businesses that fall behind on property taxes, a move vigorously enforced by Mayor Christopher Clark’s administration. This tough stance includes offering settlement agreements to help businesses avoid hefty fines—up to $2,500 a day—and even erecting physical barriers to halt unlicensed operations.
Yet, many business owners, including Kinsch, argue that these tactics are driving entrepreneurs out of Harvey. With so many facing overwhelming tax bills and unable to make a profit, the dream of catching up on back taxes feels like a distant fantasy.
“Everyone wants to climb the ladder of success, but how can you do that when you’re just working to pay taxes?” Kinsch remarked, his frustration palpable. His team is now auctioning off cars, as he can’t risk keeping them on the lot—a target for theft and damage—even though he scrapes together funds for overnight security to keep watch over the area.
Benecia Gonzalez, owner of Harvey Auto Center, shares Kinsch’s plight. With over $20,000 in tax debt hanging over her, she’s been tirelessly advocating for her business, inherited from her grandfather. When her auto shop was ordered to close in May due to a denied business license, she made her case at a City Council meeting, hoping for compassion and understanding.
Gonzalez was offered a settlement to avoid daily fines—options included paying $30,000 over the year or a lump sum of $20,000. Mayor Clark, however, clarified that these funds wouldn’t alleviate her tax burden but would serve as fines instead. “You’re just paying a fine instead of being prosecuted,” he explained.
Sadly, Gonzalez’s shop is now one of the many businesses barricaded as of September, cutting off their lifelines to customers and further squeezing their financial stability.
According to the city, these measures aim to ensure fairness in tax contributions, especially since many businesses are owned by non-residents who benefit from local services without shouldering their share of the tax burden. “It’s unfair for them to use our services while the revenue meant for Harvey goes elsewhere,” the city stated, defending its actions.
In a bold move, attorney Rob Hanlon has initiated a federal lawsuit against the city on behalf of Gonzalez and several other local businesses. The lawsuit describes the city’s strategy as a scheme to extort money from business owners under the guise of tax collection—arguing that such matters should be handled through the proper legal channels, not by blockading their livelihoods.
As the tensions mount, Kinsch reflects on the impact of skyrocketing property taxes and reassessments that have hit Harvey’s community hard, shifting burdens from businesses to homeowners, particularly affecting families in communities of color. “I stopped paying property taxes because the amounts were outrageous. I’ve been fighting back through appeals,” he explained.
With Harvey’s property tax collection rate lingering at a mere 52%, the pressure is mounting for both residents and small business owners alike. As these barricades stand firm, the fight for survival continues for those trying to make an honest living in Harvey.
“The government can’t just take action like this without due process,” Hanlon asserted passionately. “We need to follow the law, and that means going to court first.”
The ongoing struggle between the city and its business owners raises critical questions about fairness, accountability, and the future of entrepreneurship in Harvey. Will these barriers be the end of local businesses, or will they pave the way for a stronger fight back? Only time will tell.
