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
John Albi, Management Analyst
Josh Grady, Lead Account Specialist
SUBJECT:Title
Consideration of Business License Tax Study Results and Feedback from Business License Tax Forum (No Immediate Revenue Impact) (Finance Director Bretthauer).
(Estimated Time: 1.5 Hr.)
DISCUSS AND PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction regarding the Business License Tax Modernization Plan, including direction on which Tax Model option to proceed with, based on the results of the tax study and community input.
FISCAL IMPLICATIONS:
There are no immediate fiscal implications regarding this update on the Business License Tax Modernization Plan; however, General Fund revenue impacts will vary considerably based on the Tax Models presented, which range from $552,000/year on the low end to $2.9 million/year on the high end. These potential fiscal impacts would be realized only if City Council moves forward with a ballot measure and only if voters approve the measure during the upcoming November 2026 General Election.
BACKGROUND:
A Business License Tax is imposed on persons or entities for the privilege of conducting business within a city. For most cities, business license taxes are generally a major source of revenue and the licensing process allows cities to regulate the types of businesses that can legally operate and conduct activities.
The purpose of the tax is to ensure that businesses comply with local regulations and contribute to public services, of which they benefit. The City's business license tax supports the General Fund, which helps keep the City's clean and well-maintained streets and sidewalks, as well as our safe and secur...
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