Title
Staff Report for an Ordinance Amending Section 2-2-500 of the San Leandro Municipal Code in its entirety Relating to the Business License Tax for 2017-18
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve the amendments to the Business License tax, in accordance with City of San Leandro Municipal Code section 2-2-500.
BACKGROUND
During the biennial budget process, the City determines the annual change in the Consumer Price Index (CPI) and applies this increase to the business license tax schedule, which is shown in table form in City of San Leandro Municipal Code section 2-2-500. Amendments to the table in section 2-2-500 are presently necessary to reflect updated rates per the CPI, and recent legislation that was passed by San Leandro voters to amend the Business License Tax. If the amendments to section 2-2-500 are approved by the City Council, the City's amended tax rate schedule for business license taxes would be effective December 1, 2017.
DISCUSSION
On November 8, 2016, San Leandro voters approved Measure OO to modify the business license ordinance, effective January 1, 2017, related to the following:
* Reduce the business license tax for approximately 1,800 San Leandro based businesses with three or fewer employees
* Modify the business license tax for parking lots to charge 10 percent of gross receipts
* Modify the business license tax for warehouse, wholesale, and distribution uses, to charge $100 per 1,000 square feet of space
These modifications are designed to align with City Council priorities to support small businesses located in San Leandro, and to incentivize the productive use of the City's industrial areas, with an emphasis on job creation.
Since the adoption of these modifications, some small businesses with three or fewer employees mistakenly paid the unit fees for 2017. City staff provided these business owners the option of a refund or a credit towards the 2018 business license in ord...
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