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Measure C Ordinance to fund essential services by amending business tax rate City of Emeryville Majority Approval Required
See Also:
Index of all Measures |
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League of Women Voters of California Education Fund
Pass:
1,111 /
82.48% Yes votes ......
236 /
17.52% No votes
| Results as of Nov 14 12:36pm, 100.0% of Precincts Reporting (4/4) |
| Information shown below: Official Information | Impartial Analysis | Arguments | | |||||
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To maintain the high quality of life in Emeryville and fund essential services including police, fire, 9-1-1, park maintenance, litter abatement, graffiti removal, flood protection, street maintenance, accessibility improvements, child care, senior and recreation programs, shall an ordinance be adopted that increases the business tax rate to 0.10% of gross receipts, amends the definition of gross receipts and makes other clarifications?
Currently the business tax rate for businesses that pay a business tax based on the amount of gross receipts they generate is 0.08% of gross receipts. Measure C would increase this business tax rate to 0.10% of gross receipts. Based on the existing level of gross receipts generated by Emeryville businesses that pay their business tax based on gross receipts, and assuming the business tax cap is still in place, the increase in the business tax rate to 0.10% of gross receipts is expected to generate approximately $640,000 per year in additional revenue to the City's General Fund. Measure C would also amend the definition of "gross receipts" to eliminate two (2) types of transactions that are excluded from the definition of what constitutes "gross receipts". The first is transactions between a partnership and its partners and the second is receipts from services or sales in transactions between affiliated corporations. Additionally, language that could be interpreted as allowing a business to deduct the cost of materials, labor, interest and losses or other expenses from gross receipts is also proposed to be removed. It is unknown what amount of an increase, if any, these changes in the definition of "gross receipts" will have on the amount of business tax the City collects. Finally, Measure C would also make several clarifying revisions to the Business Tax Ordinance. These revisions are minor in nature, they do not result in any change in the amount of business tax that a business pays, and thus they can be implemented without a vote of the electorate of the City of Emeryville. A "Yes" vote by a majority voting on Measure C means that the business tax rate for businesses that pay a business tax based on the amount of gross receipts they generate would increase to 0.10% of gross receipts. Additionally, the definition of gross receipts would be modified so that transactions between a partnership and its partners and between affiliated corporations would be included in the gross receipts of the business and subject to the business tax. Further, language that could be interpreted to allow businesses to deduct certain expenses from their gross receipts is also eliminated. A "No" vote by a majority voting on Measure C means that the business tax rate for businesses that pay a business tax based on the amount of gross receipts they generate would remain unchanged. Additionally, the definition of gross receipts would remain the same and the exclusion of transactions between a partnership and its partners and between affiliated corporations would continue to be excluded from the business tax. Further, language that could be interpreted to allow businesses to deduct certain expenses from their gross receipts would also remain. Respectfully submitted,
Michael G. Biddle
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News and Analysis Oakland Tribune
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| Arguments For Measure C |
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Emeryville public services have been reduced due to the recession and the State theft of
funds from local governments. Cutbacks include police services, fire services, child care,
parks maintenance and street sweeping. The City has responsibly reduced spending by
10% for the current two year budget, and is asking its employees to make contributions to
their retirement funds to help offset the loss of revenues. The reduction in services,
however, cannot continue indefinitely without affecting the quality of life in Emeryville.
Costs to maintain essential public safety services, roadways and public facilities escalate
each year. The City must match prudent reductions in expenditures with new sources of
revenue to maintain a city we want to live and do business in. Businesses and commercial
properties make up approximately 60% of our land uses and have a significant stake in
our quality of life. The Business Tax recognizes the need for businesses to contribute to
the cost of city operations. The rate for the tax has not changed for 18 years and has not
kept pace with the increasing cost of running the City. Measure C would raise the
current rate charged to businesses of .08% of gross receipts to .10%. This modest
increase will still be less than what our neighboring cities charge. It will not solve the
entire budget shortfall, so the City Council will have to continue to find ways to
economize. But it will assist in funding high priority services and allow businesses to
make a fair contribution to solving the budget problem. We urge a yes vote on Measure C
Ruth Atkin
Ken Bukowski
Nora Davis
Kurt Brinkman
Jennifer West
(No arguments against Measure C were submitted) |
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