League of Women Voters of California Education Fund
	El Dorado County, CA June 5, 2012 Election
	Measure B Business and professions tax rates City of South Lake Tahoe Majority Approval Required Pass: 1194 / 55.61% Yes votes ...... 953 / 44.39% No votes See Also: Index of all Measures

Arguments For Measure B

Measure B will REDUCE the Business and Professions Tax on 95% of business in the City of South Lake Tahoe and eliminate the cost of living increase provided for in the current City Code for Businesses and Professions taxes. Passage of Measure B will provide certainty for small businesses by eliminating the annual increase for inflation. Measure B makes the Business and Professions Tax more equitable between small businesses and large businesses because currently, large businesses are capped at a maximum tax of $3,448 regardless of their annual gross revenues resulting in small businesses paying a far greater percentage of tax than large businesses. Measure B increases the cap on the Business and Professions tax from $3,448 to $20,000 based on the tax rate for each type of business, reduces the overall tax rate, and eliminates the annual automatic increase for inflation. Passage of Measure B is essential to assist small businesses in reducing their tax burden especially important during these difficult economic times. Large businesses should pay their fair share of taxes and pay the same percentage of taxes required of small businesses. 95% of Businesses will see a reduction on the Business and Professions Tax. Less than ten (10) businesses are expected to reach the maximum tax of $20,000 and less than 50 large volume businesses will realize an increase of any amount in the business tax (again, 95% of businesses will see a reduction in taxes). The proposed adjustments in the tax rates will result in a more equitable formula of the business and professions tax. A Yes vote is important to help small businesses in the City of South Lake Tahoe and help the community maintain essential services, like snow removal, fire and police. On behalf of the South Lake Tahoe City Council, Claire Fortier, (No arguments against Measure B were submitted)

Full Text of Measure B

CITY OF SOUTH LAKE TAHOE ORDINANCE NO. 2012-15 AN ORDINANCE OF THE CITY OF SOUTH LAKE TAHOE CITY COUNCIL AMENDING CITY CODE CHAPTER 15 + TAX RATES AND LICENSING, ARTICLE II + TAX RATES AND CLASSIFICATION, SECTION 28 + BUSINESS AND PROFESSIONS TAX RATES + GROSS RECEIPTS The City Council of the City of South Lake Tahoe does hereby ordain as follows: Section 1. Section 15-28 of Article II of Chapter 15 of the South Lake Tahoe City Code is hereby amended by decreasing the percentages of gross receipt per $1,000 for Schedules A through E, increasing the not to exceed amount to $20,000 for any business location in any calendar year and rescind the cost of living increase provided for in the current ordinance. 15-28 Business and professions tax rates + Gross receipts. Businesses classified within the following schedules shall pay business license fees per $1,000 of gross receipts as follows: Schedule A: $1.05 Schedule B: $1.57 Schedule C: $2.09 Schedule D: $2.61 Schedule E: $3.14 Business taxes imposed by this section and administrative fees assessed pursuant to SLTCC 15-4.1 shall not exceed in total the sum of $20,000 for any business location in any calendar year. Penalties and interest shall be in addition to business license fees and administrative fees. Business taxes (license fees) rates shall be applicable to every business made subject to a tax based upon gross receipts by this Code. Section 2. It is the intention of the City Council, that, if any tax imposed under this Ordinance is for any reason held to be unconstitutional or contrary to state law, it is the intent of the City Council that the tax which would have been imposed had this ordinance not been adopted shall remain in effect. Section 3. The City Council of the City of South Lake Tahoe may delete, restore, amend or alter any of the provisions of this ordinance and any provision of the City of South Lake Tahoe City Code affected by this ordinance provided that such action does not establish any new tax or increase any existing tax. Section 4. Pursuant to Election Code Section 9217, this ordinance shall be considered adopted on the date that the City Council declares a majority vote in favor of the ordinance and shall go into effect ten (10) days after that date. However, the provisions of this ordinance shall not apply to business license taxes for the 2011-2012 year provided that the business has paid the 2011-2012 business license tax prior to the effective date of this ordinance.