TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Financial Services Manager
Toni Page, Revenue Services Supervisor
Josh Grady, Lead Account Specialist
SUBJECT:Title
Consideration of Polling Results on a Potential Business License Ballot Measure and Direction to Schedule the Consideration of Resolutions to Present to the Voters the Finalized Ballot Measure Updating the Business License Tax for the August 4, 2026, City Council Meeting (No Immediate Revenue Impact) (Finance Director Bretthauer).
(Estimated Time: 1 Hr.)
PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council:
1. Discuss results from recent Polling on a potential Business License ballot measure;
2. Provide direction and select a final Tax Model for the Measure;
3. Direct staff to return at the August 4, 2026, City Council meeting with the required resolutions to place a ballot measure applying the selected gross-receipts rate equally to all businesses, lowering the flat rate, and raising the cap for large businesses at the November 3, 2026, General Municipal Election.
FISCAL IMPLICATIONS:
There are no immediate fiscal implications associated with the recommended actions. The impact to the City's business license tax revenue would vary depending on the Tax Model that is selected for the ballot measure, and would be realized only if approved by voters at the November 3, 2026, General Election. Should the City Council direct staff to return at the next meeting to call the election to update the business license tax structure, the City will incur costs associated with placing a ballot measure. Sufficient funds are currently budgeted in Fiscal Year 2026-2027 to conduct the election and include a ballot measure.
BACKGROUND:
A Business License Tax is imposed on persons or entities for the privilege of conducting busine...
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