From: Liz Acord
To: Gerry Beaudin; CityCouncil-List
Cc: Erin Smith; Lara Weisiger; Margaret O"Brien; Lisa Maxwell; Lois Butler; Eric Fonstein Subject: RE: Revenue Measure Item
Date: Tuesday, May 3, 2022 10:03:59 AM
Attachments: Cannabis TOT Business License COMP + Project Spending.xlsx image001.png
Hi all:
Please see the attached comparison.
Thank you,
Liz
_____________________________
Liz Acord
Public Works Coordinator
City of Alameda Public Works
510-747-7957 (Direct) | 510-906-7680 (Cell)
www.alamedaca.gov/public-works
From: Gerry Beaudin
Sent: Monday, May 2, 2022 3:54 PM
To: CityCouncil-List <[email protected]>
Cc: Erin Smith <[email protected]>; Lara Weisiger <[email protected]>; Liz Acord <[email protected]>; Margaret O'Brien <[email protected]>; Lisa Maxwell <[email protected]>; Lois Butler <[email protected]>; Eric Fonstein <[email protected]>
Subject: Revenue Measure Item
Good afternoon, Mayor and Councilmembers –
I have received questions about sales tax, TOT, and business license tax rates in surrounding/nearby jurisdictions. We are pulling together as much of that information as we can find and plan to share it by around noon tomorrow (at the latest).
Please let me know if you have any questions when you receive the information.
Gerry
Gerry Beaudin, AICP | Assistant City Manager
Pronouns: he/him
Direct: 510.872.2128 | Office: 510.747.4700
2263 Santa Clara Avenue, Suite 320, Alameda, CA 94501
Cannabis Comparison
Cities Retail Retail Cultivation Cultivation Distribution Distribution Manufacturing Manufacturing Testing Testing
A M A M A M A M A M
Alameda NA NA NA NA NA NA NA NA NA NA
Albany NA NA NA NA NA NA NA NA NA NA
Berkeley 5% 3% 5% 3% 5% 3% 5% 3% 5% 3%
Dublin NA NA NA NA NA NA NA NA NA NA
Emeryville 3% 3% NA NA 1% 1% 2% 2% 1% 1%
Fremont NA NA NA NA NA NA NA NA NA NA
Hayward 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%
Livermore NA NA NA NA NA NA NA NA NA NA
Newark NA NA NA NA NA NA NA NA NA NA
Oakland Tiered rates based
on size of business
Pleasanton NA NA NA NA NA NA NA NA NA NA
San Leandro 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Union City 4% 4% $8/sqft $8/sqft 2% 2% 4% 4% 1% 1%
Prepared by SCI Consulting Group in 2020
A=Adult Use
M= Medicinal Use
Transient Occupancy Tax Comparison
Cities Rate
Alameda 10%
Albany 10%
Berkeley 12%
Dublin 8%
Emeryville 12%
Fremont 10%
Hayward [1] 8.5%
Livermore 8%
Newark [2] 10%
Oakland 14%
Pleasanton 8%
San Leandro 14%
Union City 9%
[1] For persons eligible for the Transient Occupancy Tax, the Emergency Services Facilities tax shall be an additional 2% of the total rents charged. [2] Established by City Council Resolution, 10% as of FY2018-19 Prepared by staff in 2022
Business License Comparison
City Business Tax Type Exemptions * Rates
Alameda Primarily GRT, gross payroll for those that do not produce GR
Non-profits, veterans exempt from fee but not processing fees.
$0.40 for each one thousand dollars of gross receipts or gross payroll. Minimum fee: $195 if total GR $175,500 but not more than $487,499. $153 if total GR $88,000 but not more than $175,499, $103 if GR less than $88,000. Hotel/Rooming House: $5.00/room.
Dwelling unit rental: $20/unit. Commercial Rental: $20.00 per 1,000 sq. ft. Manufacturing: $0.40 per $1,000 GR les raw materials.
Emeryville GRT Charitable organizations For most businesses is $1.00 per $1,000; Commercial rent = $3.50; Cannabis = $60 Richmond Currently flat fee + tax per employee; Measure U (2020), implements GRT to take effect July 2021 and is described here
Non-profits; small businesses < $250K; affordable housing, some owner-occupiers room and ADU rentals if < 150% AMI; family daycare providers; hardship exemptions (1 yr, must apply)
Progressive system, rates are marginal and by category, most range between $0.60 and $2.00 (grocers) to $3.60 to $6.80 (professional svcs); Cannabis = $50.00; Firearms = $60 first $2,500 then $24; seems to pull from Oakland and Berkeley San Francisco Primarily GRT Primarily non-profits Progressive system, varies by category. (Note: Prop F (2020) modified categories and set rates for Jan 2021 w/annual increases through 2024). Most currently range from $0.53 to $9.10 per $1,000 (Cannabis higher) Los Angeles Primarily GRT, some exceptions (e.g., Movie production = cost)
Non-profits; Small biz (< $100K/yr); Mutual funds; New auto dealers, Contractors < $60K ($153 flat fee)
Rates per $1,000 range from $1.01 (childcare provider & others) to $4.25 (Professions & Occupations, others); Medical marijuana = $60 per $1,000
San Jose Primarily num employees, some exceptions Non-profits; Farmers within Santa Clara County selling own products in City
Base tax of $203.85, most categories then taxed per employee starting at 3rd employee, progressive marginal tax (e.g., $32.70 per employee for 3-35 employees, up to $65.45 for 500+). All capped at $163,745.
San Leandro Flat fees, some categories add'ltaxes (GR, headcount, sq ft)
Non-profits and most businesses with 3 or fewer employees within City
$146.20 base for most businesses; GRT applied only to limited categories: Coin operated devices & towing ($1.30); Firearms (concealed weapons & ammo)= $44.00; parking lot ($100)
Hayward Limited GRT, most categories pay flat fees, per emp, per sq ft, etc.
Charities/non-profits; Peddlers or solicitors who are veterans, disabled, or indigent.
Most Retail/wholesale = up to $373.35 fee if <$3M, add’lGRT of $0.11 for $3M+ (some $0.27 for $400K+); Other rates at $1.07 to $1.33, Cannabis = $70.
Walnut Creek Most businesses may choose GRT or a flat rate + headcount
Charitable organizations; Minors (< 18 yrs) with up to $1,000 revenues
GRT of $2.30 first $10K then decreasing rate up to $0.02 for revenues > $10M; OR flat $416.00 for 1 owner/partner + Add'lpartners $139.00 then $28 per employee up to 300 then $14 for above 300 Concord GRT (wholesale/retail, comm rents, contractors > $204K); rest per employee or flat fee
Non-profits may qualify for no-fee business license GRT: minimum $25 up to $25K revenues, then marginal GRT rates that decrease from $0.90 to $0.30 per $1,000 at $7.5M annual revenues; Varying rates per employee for most other categories Antioch GRT except per-unit for residential rentals Non-profits $1.25 per $1,000 up to $1M, then add'l$0.20 per $1,000 of revenues > $1M, Min of $100 ($25 home-based)Residential rental units = $250/unit for Single-family, $150/unit for multi-family Pleasanton GRT Non-profits Fees up to $75 up to $250K annual revenue, above that = $0.30 per $1,000.00 Most pay $30 fee plus GRT per $1,000 that varies from $0.25 (retail) to $1.50 (rec & entertainment).
Charge extra $0.30 for retail/
GRT = Gross Receipts Tax
Comparison prepared by City of Oakland in 2021
* California prohibits taxation by any local jurisdiction for certain entities including the following: (1) banks and financial corporations; (2) insurance companies; (3) persons engaging in business as a for-hire motor carrier of property; (4) persons engaging in intercity transportation as a household goods carrier; (5) charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the taxing jurisdiction.
Oakland Threshold limits (vary by category);Non-profits; some affordable housing; licensed family daycare up to 14 children Range from $0.60 (grocers) to $13.95 (commercial and residential rental property) per $1,000Cannabis rates are progressive, $1.20 to $13.95 per $1,000 (Cannabis higher)
Berkeley Wholly charitable organizations; Small businesses w/gov't R&D grants
Rates range from $0.60 (grocers) to $4.50 per $1,000 for most categories, with some much higher rates: Professional sporting events = $100; Firearms and ammunition = $150; Cannabis = $25 to $50 Fremont GRT Non-profits; Agricultural (non-retail); Part-time jobs (youths & seniors); Veterans
Primarily GRT, some exceptions, (e.g., employees, payroll, etc.)
Primarily GRT, (similar to Oakland)
Contracts approved by City Council 12/7/2021
Terris Barnes Walters Boigon Heath Lester, Inc. (TBWBH) 1 year agreement expiring 11/16/2022
Feasibility assessment, ballot measure development, informational outreach and communication, and general strateg Not to exceed: $132,000
Invoiced to date: $24,532
Fairbank, Maslin, Metz & Associates (FM3)
1 year agreement expiring 11/16/2022
Survey development, implementation, analysis, and presentation support to a potential ballot measure effort Not to exceed: $37,000
Invoiced to date: $37,000
From: Gerry Beaudin
To: CityCouncil-List
Cc: Erin Smith; Lara Weisiger; Liz Acord; Margaret O"Brien; Lisa Maxwell; Lois Butler; Eric Fonstein Subject: Revenue Measure Item
Date: Monday, May 2, 2022 3:54:09 PM
Attachments: image001.png
Good afternoon, Mayor and Councilmembers –
I have received questions about sales tax, TOT, and business license tax rates in surrounding/nearby jurisdictions. We are pulling together as much of that information as we can find and plan to share it by around noon tomorrow (at the latest).
Please let me know if you have any questions when you receive the information.
Gerry
Gerry Beaudin, AICP | Assistant City Manager
Pronouns: he/him
Direct: 510.872.2128 | Office: 510.747.4700
2263 Santa Clara Avenue, Suite 320, Alameda, CA 94501