Review draft ballot measure to change business tax from per-employee to percentage of revenue

Business Tax StructureBudgetOrdinance

In Plain English

The city currently taxes businesses based on how many employees they have. The proposed November ballot measure would let the city tax businesses between 0.075% and 1.395% of their total revenue instead. If voters approve this change, businesses would pay based on how much money they make rather than their workforce size.

Auto-generated summary. Source: official agenda documents.

Votes

Bring back the matter at a special meeting next week, with a progressive schedule based on the Berkeley model with rates that are similar to Berkeley's, but in line with the economics of Richmond

Passed

5 to 1

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Why This Vote Matters

The council voted 5-1 to delay the business tax ballot measure and bring it back next week with a new progressive tax structure modeled after Berkeley's system. Instead of moving forward with the original proposal to tax businesses between 0.075% and 1.395% of revenue, the council wants to explore a sliding scale where larger businesses would pay higher rates than smaller ones. Councilmember Bates opposed the delay while Councilmember Johnson abstained. This decision postpones putting any business tax change before voters in November while the council develops a different approach that would more heavily tax bigger businesses.

Auto-generated context. Source: official meeting records.

Other motions

Adopt the resolution with the stipulation to move towards the more progressive tax rate using the Berkeley model more in line with gross receipt tax rates in surrounding cities

Failed

Community Discussion

This discussion was submitted to the City Clerk as part of the public record.

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