24/07/2024 | Press release | Distributed by Public on 24/07/2024 18:14
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Redwood City, California - On July 22, the Redwood City City Council unanimously voted to place a business license tax modernization measure on the November 2024 ballot for voter consideration. The opportunity for voters to modernize the outdated business license structure follows several months of engagement with business owners and leaders, and community members.
"Redwood City's current business license structure is old and outdated. Some of Redwood City's small businesses are paying much higher rates than big businesses," said City Manager Melissa Stevenson Diaz. "If enacted, modernizing the business license tax will ensure that large businesses pay their fair share for general City services." If approved by voters, the measure would generate additional revenue to sustain services, including police, fire and paramedic services; parks, recreation and community services; and libraries.
Small businesses are of special concern to the City because 70% of Redwood City businesses have fewer than four employees. If the ballot measure is approved, the smallest general commerce and retail businesses would pay lower taxes than today, and larger businesses would pay more. Recognizing high housing and childcare costs in the region, the measure does not increase per-unit taxes on housing and all childcare providers would be exempt from the tax.
Key Features of the Measure
Subject to voter approval, the measure is expected to generate approximately $7.2 million in net new revenue for the City's General Fund when fully phased in. The General Fund provides for City services including 911 emergency response; on-duty firefighters, paramedics and police officers; housing and homelessness initiatives; and programs for children, youth and seniors. Highlights of the measure include:
If the measure is approved, staff will make regular reports to the City Council to monitor tax impacts and business activity trends. The measure allows the City Council to reduce rates as needed.
For election related information, visit www.RedwoodCity.org/ElectionInformation.
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About the City of Redwood City: The City of Redwood City is a San Francisco Bay Area community located in the heart of Silicon Valley, the technology-rich region extending from the San Francisco Peninsula to the foothills of the Santa Cruz Mountains. Redwood City is the third largest city within the County of San Mateo, with 85,992 residents. The city enjoys an average of 255 sunny days a year, which it boasts via the city slogan: "Climate Best by Government Test." Incorporated in 1867, Redwood City is home to the San Mateo County History Museum (located in the county's old courthouse) and the only active deep-water port within the south bay of San Francisco. The city's vibrant downtown, quickly becoming known as the entertainment hub of the San Francisco Peninsula, offers residents, visitors, and businesses a unique retail, entertainment, and restaurant experience.