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San Mateo County, CA November 2, 2004 Election
Measure N
Business License Tax Increase
City of Daly City

Majority Approval Required

10,311 / 52.3% Yes votes ...... 9,393 / 47.7% No votes

See Also: Index of all Measures

Results as of Dec 15 1:37pm, 100.0% of Precincts Reporting (51/51)
Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text

Shall the Daly City Business License Tax Ordinances be amended to increase the business license tax in order to raise monies for general fund purposes such as, but not limited to, police, fire, parks, libraries, and recreation programs that might otherwise be reduced due to the loss of other local tax revenues?

Meaning of Voting Yes/No
A YES vote of this measure means:
A "yes" vote on Measure N is a vote in favor of approving the proposed increase in Business License Taxes for Daly City.

A NO vote of this measure means:
A "no" vote on Measure N is a vote against the proposed increase and the Business License Tax rates will remain as established.

Impartial Analysis from City Attorney
The Daly City City Council has placed this matter on the ballot for voter determination. A majority of the voters approving this measure is required. Revenues generated from the changes in the Business License Tax will be general revenues to Daly City. General revenue money pays for a wide variety of basic City services including public safety, parks, libraries, building repairs and road maintenance.

This measure increases the annual general Business License Tax by 30 per $1,000.00 of gross receipts greater than $100,000.00 with an annual minimum tax of $100.00, increased from the existing annual minimum of $50.00.

For residential rental property businesses the proposed Business License Tax would be 50 per $100.00 of gross receipts, but not less than $100.00 per year per residential rental property business. Residential units or spaces occupied by the residential building owner for living purposes are exempt for the Business License Tax.

Charitable and non-profit organizations are exempt from paying a Business License Tax.

A majority vote of the City's voters voting in this election is required to approve this measure. The tax could not be increased in the future except by another vote of the City's voters. This measure, if approved, would not be effective until January 1, 2005 nor be collected earlier than October 1, 2005.

A "yes" vote on Measure N is a vote in favor of approving the proposed increase in Business License Taxes for Daly City.

A "no" vote on Measure N is a vote against the proposed increase and the Business License Tax rates will remain as established.

/s/ Stan Gustavson August 23, 2004 City Attorney

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Arguments For Measure N Arguments Against Measure N
These ballot measures are a chance for us to vote YES for our families, our community, and our future.

Year after year, Daly City has had to cut staff and services to balance its budget, while trying to minimize the effects of these cuts on residents. But the effects of these cuts have become more and more visible. Library hours have been reduced. Nearly 50 positions are vacant, affecting our police, firefighting, and emergency medical services. Why? Because the City has permanently LOST $4 MILLION of our local property tax money to the State (OVER $40 MILLION IN THE LAST 12 YEARS!).

Recreation programs for youth and seniors have been reduced and fees have been increased for the programs that remain, creating a burden for many families. Parks and street maintenance have been cut back, affecting our property values and the pride we take in our community. Without additional revenue it is unlikely that any of these local services will return. Our community deserves better, but there is no way to pay for it.

Your YES vote approving a local one-fourth of one penny sales tax and a modest business license tax increase will help to provide the badly needed local services this community needs but has lost. Our community attracts significant business regionally, so those who shop and conduct business here will help support critical and needed local services. THESE LOCAL TAXES WILL STAY IN DALY CITY and help to pay for the public safety, library, youth, and senior services that this community needs and deserves.

Please join us in voting YES on these important measures.

It is Our Community, Our Services, Our Choice.

/s/ Carol L. Klatt August 12, 2004 Vice Mayor, City of Daly City

/s/ Maggie A. Gomez August 12, 2004 Councilmember, City of Daly City

/s/ Ray B. Satorre August 12, 2004 CEO, Medical Link Providers, Inc.

/s/ Rick Crump August 12, 2004 Member, Crown Colony Homeowners Assoc.

/s/ Leah Berlanga August 12, 2004 Parks and Recreation Commissioner

Rebuttal to Arguments For
Contrary to the argument in favor of this measure, this is not a chance to vote on families or community.

This measure is to give permission for your elected officials to spend more money. --And the council could spend this money any way they like. Squeezing businesses for more money is not a solution to the problem. The problem is spending. --But the City Council seems so busy spending money that they can't make time to write separate arguments for their proposed tax hikes.

We have all had to tighten our belts while the economy has been slow. Our City Council made some cuts, but claims that it still cannot live within its budget. We elected the City Council to make the hard decisions--where to cut, and how much. We expect them to decide which services are critical, and which can be trimmed. Your City Council seems unable do its job, and choose.

The proposed doubling of the business license tax will not teach the City Council to live within its budget. It will teach them that they can always squeeze more money out of the taxpayers. Remember, businesses will pass this tax on to consumers in higher prices, so this is really a tax on consumers, too.

Citizens must live within their budgets. We expect our government to do the same.

Vote NO on doubling the business license tax!

/s/ R. Fliegler August 23, 2004 Small Business Owner

/s/ Harland Harrison August 19, 2004 Candidate for Congress

/s/ John J. "Jack" Hickey August 19, 2004 Chair, Libertarian Party of San Mateo County

/s/ Christopher V.A. Schmidt August 19, 2004 Retired Computer Professional

Hold on to your wallets. They are at it again!

Your City Council cannot live within its budget--and they want someone else to pay the bill. This time they want to double the business license tax. This is not just a tax on businesses. --Ultimately, consumers must pay every dime of taxes collected from businesses. And some business unable to pass tax increases on to consumers via higher retail prices will likely relocate to a more business friendly town.

The proposed tax increases are for the general fund. Council members can decide to spend it any way they like. There is no guarantee they will spend it on "police, fire, parks, libraries and recreational programs" as in their July 30, 2004 resolution. There is no oversight or penalty if they just look on it as another source of funding to grow more government.

Growing government on the backs of local businesses and consumers is counter-productive to building a healthy economy.

Proponents of this money grab will claim they could do so much more for our community with this increase in funding. Why do we hear this same song every election cycle? Why do we keep falling for it? To keep government--even at our local level--from growing into a cash-sucking monster, we must stop giving them permission to take our hard earned dollars.

We all have to live within our incomes. Why shouldn't our elected officials do the same?

Vote No on more taxes!

/s/ R. Fliegler August 12, 2004 Small Business Owner

/s/ Harland Harrison August 12, 2004 Candidate for Congress

/s/ John J. "Jack" Hickey August 13, 2004 Chair, Libertarian Party of San Mateo County

/s/ Christopher V.A. Schmidt August 12, 2004 Retired Computer Professional

Rebuttal to Arguments Against
Our fellow citizens on the City Council are fulfilling their obligation to protect our interests and our community by bringing before us a critical choice regarding our quality of life and what our future holds. Now it's our turn.

We did not realize that the State of California had seized authority to divert part of our local property taxes and other revenues that have always paid for the important services that our families, friends, and businesses depend on every day. Although the City has dealt with the huge loss in revenue caused by the State, we see the unavoidable impacts on needed services that have occurred.

In their collective experience of 39 years overseeing City services and physical assets, our Council members have found that stretching our remaining resources simply cannot provide adequate services and facilities to our community.

We Agree.

Our neighbors on the City Council have carefully crafted two tax measures that are equitable and have a minimum impact on our residents. Further, many of the services that are used by people outside of our community will be paid for by them under these proposals.

We are proud of our families, our homes, and our businesses. We wish to maintain a community that helps our children, our older adults and one in which we can continue to have pride as we drive our streets and neighborhoods.

We urge you to vote "Yes" - it really is our choice!

/s/ Joseph Keh August 19, 2004 Bayshore Youth Organization

/s/ Warren Hutchins August 20, 2004 Retired - First National Bank

/s/ Michael Pacelli August 19, 2004 President, Bay Relations, Inc.

/s/ Angel G. Lim August 19, 2004 Owner, Construction and Engineering Co.

/s/ Andre Belarmino August 20, 2004 President, Serramonte Homeowners Association

Full Text of Measure N

Section 1: That Daly City Municipal Code, Chapter 5.16, Sections 5.16.040 and 5.16.050 are hereby amended to read as follows:

5.16.040 License tax schedule.

The general business license tax schedule under this chapter is as follows:

A. For businesses with annual gross receipts up to one hundred thousand dollars, the tax shall be one hundred dollars, nonrefundable.

B. For businesses with annual gross receipts greater than one hundred thousand dollars, the tax shall be the total of one hundred dollars, nonrefundable, plus one tenth of one percent of gross receipts greater than one hundred thousand dollars.

C. For purposes of calculating the tax, the total annual tax due may be rounded to the nearest whole dollar.

5.16.050 Taxes for certain businesses.

Every person transacting and carrying on the following businesses herein enumerated shall pay a license tax as follows:

A. Any person engaged in the business of operating or maintaining any building or buildings constructed on one parcel or upon separate parcels of land available for rental or lease and intended to be used for dwelling, lodging or sleeping purposes other than for transient lodging, shall pay a license fee equal to one-half of one percent of gross receipts, but not less than one hundred dollars. Any unit or spaces occupied by the actual owner of such building or buildings for living purposes shall be exempt.

B. Any person engaged in operating a place of business not generating gross receipts shall pay a business tax equal to the greater of $25.00 per employee or two cents per square foot of usable square footage of the building or space occupied, but not less than one hundred dollars. Section 2. Sections 5.16.010, 5.16.020, 5.16.030 and 5.16.060 of Chapter 5.16 of the Daly City Municipal Code remained unchanged by this Ordinance.

Section 3. This Ordinance shall become effective on January 1, 2005.

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Created: December 15, 2004 13:37 PST
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