Place ballot measure to change business tax from per-employee to percentage of gross receipts
In Plain English
Richmond currently taxes businesses based on number of employees. The proposed ballot measure switches to taxing businesses 0.06% to 5% of their gross receipts instead. If voters approve in November, the city collects business taxes differently but the total amount raised stays roughly the same.
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Votes
Motion · Official minutes
Adopt Option 1 with amendments: use Berkeley's rental tax rate model; small landlords with four units or less receive credits for rent board payments; franchisee exemption language; addition of employee definition; addition of warehouse and wholesale distributors category with same rate schedule as business and personal services
4 aye · 2 nay · 1 abstain
Why This Vote Matters
Richmond voters will decide in November whether to change how the city taxes businesses, switching from employee-based taxes to a system based on gross receipts ranging from 0.06% to 5%. The council voted 4-2 to place this measure on the ballot, with Mayor Butt and Vice Mayor Bates dissenting and Councilmember Johnson abstaining. The approved version includes special provisions like tax credits for small landlords with four or fewer units who pay rent board fees, and exemptions for franchisees. While the tax collection method would change, the city expects to raise roughly the same total amount from businesses.
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Related agenda records
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November 2020 ballot measure for business tax rate structure
Business License Tax ballot measure
Draft resolution for November 3, 2020 ballot to amend the City's business tax rate structure
Resolution calling and providing for a Special Election to be held on November 8, 2005, for the purpose of submitting to the voters an ordinance amending the City of Richmond Transactions and Use Tax Ordinance to increase the tax rate by one-half percent (1/2%)
Payroll tax ballot measure discussion