BUSINESS LICENSE TAX
MODERNIZATION DISCUSSION
City Council, Nov. 28, 2023
Background
11/28/2023 BLT Modernization 2
Council authorized
agreements to
review and
modernize tax
structure
Nov. 2019
A series of business
focus groups
reviewed options and
provided feedback,
including Guiding
Principles
May 2020
Council reviewed
BLT options and
deferred action on
proposed changes
June 2020
Held Business
Leaders Roundtable;
Council reviewed draft
BLT model integrating
feedback and
expressed support
May 2021
Council received
BLT/TOT update,
providing direction to
proceed with
outreach
May 2022
Community business
forums held; Council
reviewed feedback
and prioritized TOT
June 2022
Purpose
11/28/2023 BLT Modernization 3
• Last updated over 30 years ago
• Current tax rate inequitable to smaller
businesses and does not anticipate economic
growth in the biosciences sector
• The BLT effort is aligned with the 2023-2027
Strategic Plan Dashboard initiative to “study the
benefits/opportunity to update the City’s BLT for
voter consideration”
Current Inequity
11/28/2023 BLT Modernization 4
Small craft
business
Consultant
homebasedRestaurant Big retailer Hotel/rental
property
Doctor's
office
Profession
al firm
Small
contractor
Contracting
firm
Current Tax Rate 0.0269 0.0031 0.0018 0.0001 0.0002 0.0005 0.0004 0.0045 0.001 0 0.005
0.01 0.015
0.02 0.025
0.03 Effective Tax Rate
Small businesses making under
~$125k overburdened
…Home based consultants and small
contractors also over-burdened
Guiding Principles
11/28/2023 BLT Modernization 5
Fairness Address inequities in existing tax structure
Adaptability Reflect current and future business trends Comparability Use structure like surrounding agencies
Simplicity Make simple for business to understand
Streamlined Reduce stumbling blocks to administer
Next Steps
11/28/2023 BLT Modernization 6
Confirm a 2024 ballot measure is desirable
Reaffirm original Guiding Principles
Identify two Councilmembers to serve on a
subcommittee
Thank you
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