League of Women Voters of California Education Fund
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Measure D Business License Tax City of Sunnyvale Municipal Code Amendment - Majority Approval Required
See Also:
Index of all Measures |
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Pass:
14,916 /
56.21% Yes votes ......
11,618 /
43.79% No votes
| Results as of November 28 9:51am, 100.00%% of Precincts Reporting (65/65) |
| Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text | |||||
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Shall the Sunnyvale Municipal Code be amended to increase the business license tax, which supports basic City services, from its current amount of $10 for every 5 employees/rental units, to $30 for 1, $50 for 2 to 5, and $50 for each additional group of 5 employees/rental units, up to $9,500 for employees and $4,250 for rentals, with increases phased over 3 years and both tax/cap adjusted annually for inflation? YES NO
The business license tax applies to a business operating in the City of Sunnyvale. The City of Sunnyvale's current business license tax for a business in the City of Sunnyvale is $10 for every 5 employees or rental units and is capped at $300. The current tax was established in 1968 and has not been increased since that date. The City of Sunnyvale proposes to increase its existing business license tax from $10 for every 5 employees or rental units to $30 for 1, $50 for 2-5, and $50 for each additional group of up to 5 employees or rental units, whichever is greater. The maximum business license tax will be capped at $4,250 for rental units and $9,500 for employees with the tax phased in over a two year period and the cap phased in over a three year period. The 2007 tax is $20 for the first employee, $30 for 2 to 5 employees or rental units, and an additional $25 for each additional group of up to 5 employees or rental units. The 2007 cap is $4,700 for employees and $2,500 for rental units. The 2008 tax is $30 for the first employee, $50 for 2-5 employees or rental units, and $50 for each additional group of up to 5 employees or rental units. The 2008 cap is $7,000 for employees and $3,500 for rental units. The 2009 tax is the same as 2008, with the cap raised to $9,500 for employees and $4,250 for rental units. After 2009 for the tax and 2010 for the cap, these will be adjusted annually based on the consumer price index increase for the period 2 years prior to the tax year. The proceeds of the business license tax , as a general tax, will be deposited in the city's general fund and used for general governmental purposes, including police and fire protection services, library, and parks services. A "yes" vote is a vote to increase the City of Sunnyvale business license tax to $30 for 1, $50 for 2-5, and $50 for each additional group of up to 5 employees or rental units, with the maximum business license tax capped at $4,250 for rental units and $9,500 for employees and with the tax increase phased in over a two year period and cap increase phased in over a three year period. A "no" vote is a vote not to increase the business license tax from its current rate of $10 for every 5 employees or rental units. DAVID KAHN City Attorney
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Official Information City of Sunnyvale
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| Arguments For Measure D | Arguments Against Measure D |
| Sunnyvale is facing hard budgetary times, and the City Council has responded with targeted service reductions. Two years ago the city faced a $15 million annual structural deficit. Today that deficit has been reduced to about $1.75 million. Cutting that much has caused hardship for many residents and businesses as services they've relied on disappear. The economy is starting to look up, but even with an upturn the City will have to cut more.
Measure D proposes to help balance the budget through an increase in the cost of a Sunnyvale Business License. When enacted, it will add about $1 per month to the salary cost of a business's employees, and about $1 per month to the rent for an apartment. It may seem like a small amount of money, but it will go a long way to help the City do its job. The last time the cost of a Business License in Sunnyvale was changed was 30 years ago. The largest employer in Sunnyvale currently pays about $300 per year to do business here. In San Jose they would have to pay more than $24,000. The Sunnyvale Chamber of Commerce and most business contacted by the City have recognized that this situation should change, and they have endorsed this measure. When it passes it will help, but it will not solve the problem. The City Council will have to make more cuts even if the Business License cost is increased. We ask you to give a vote of confidence in Sunnyvale and its government. Vote YES on Measure D, and help us do what must be done to keep Sunnyvale the clean, healthy and prosperous community that it is.
/s/ Frederik M. Fowler
/s/ Ronald Swegles
/s/ Dean J. Chu
/s/ Arley C. Marley III
| No argument against Measure D was filed.
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| Full Text of Measure D | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| N.B. This is an unofficial version. For the official version contact the City Clerk or the Registrar of Voters
If Measure D carries, the Sunnyvale Municipal Code shall be amended by amending Section 5.04.110 to read as follows: Section 5.04.110 License tax - Imposed.
There is hereby imposed a yearly license tax upon every person transacting, engaging in, or carrying on any business within the city
(a) (For the tax due January 1, 2007) For businesses based on employees or rental units, $20 for the first employee, $30 for 2-5 employees or rental units, or portion thereof, and an additional $25 for each additional group of 5 employees or rental units, or portion thereof, up to a maximum of $4,700 for employees and $2,500 for rental units.
(b) (For the tax due January 1, 2008) For businesses based on employees or rental units, $30 for the first employee, $50 for 2-5 employees or rental units, or portion thereof, and $50 for each additional group of 5 employees or rental units, or portion thereof, up to a maximum of $7,000 for employees and $3,500 for rental units. (c) (For the tax due January 1, 2009) For businesses based on employees or rental units, $30 for the first employee, $50 for 2-5 employees or rental units, or portion thereof, and $50 for each additional group of 5 employees or rental units, or portion thereof, up to a maximum of $9,500 for employees and $4,250 for rental units. The amount of tax paid up to, but not exceeding, the maximum for employees and rental units shall be adjusted by the Consumer Price Index (CPl) as more fully described in Section 5.04.110(e).
(d) For businesses with both employees and rental units, the tax shall be based on the greater number of employees or rental units.
(e) (For the tax due January 1, 2009 and thereafter) The amount of the tax and cap shall be indexed annually for inflation, based upon the San Jose/San Francisco/Oakland MSA Consumer Price Index (CPI) for All Urban Customers (for All Items). The CPI inflator shall be based on the annual percentage change in consumer prices for the August to August period. So long as the two-year business license tax processing cycle remains in effect, the CPI inflator shall be applied based on the methodology established in the table below:
The indexed amounts shall be set forth each year in the City's Master Fee Resolution
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Created: January 28, 2006 14:44 PST
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