Place measure on November ballot to change business tax structure

Business Tax StructureBudgetResolution

In Plain English

The city currently taxes businesses based on how many employees they have. The proposed ballot measure would let the city tax businesses based on their gross receipts instead, with rates from 0.075% to 1.395%. If voters approve, the city gains flexibility to adjust business tax rates within this range.

Auto-generated summary. Source: official agenda documents.

Votes

Approve the item; recommend the Oakland model; direct staff to engage the business community and Council of Industries; and return the matter to the July 28, 2020, City Council meeting or at a special meeting in August, if necessary

Passed

7 to 0

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Why This Vote Matters

The council unanimously approved putting a business tax restructuring measure on the ballot that would allow the city to tax companies based on their revenue instead of employee count. If voters approve, businesses would pay between 0.075% and 1.395% of their gross receipts, giving the city more flexibility to adjust rates within that range. The council directed staff to study Oakland's similar system and work with local business groups before finalizing the proposal by late July or August. This represents a significant shift from the current system that bases taxes on how many people a business employs.

Auto-generated context. Source: official meeting records.

Community Discussion

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

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