EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: June 7, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Valerie J. Armento, Interim City Attorney
BY: Patricia Del Castillo, Legal Assistant
SUBJECT: Revised Ballot Measure Language for Gross Receipts Tax Measure Recommendation
Adopt a resolution revising the ballot measure language for the gross receipts tax measure.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 5: Improve Communication and Enhance Community Engagement Background
After extensive review and discussion, City Council decided on May 3, 2022 to place a measure on the ballot increasing the gross receipts tax on residential rentals.
After adopting a resolution calling for putting the measure before the voters at the November 2022 election, Councilmember Romero recommended “flipping” the way the ballot question was stated, so that the purposes of the tax are listed first in the question.
Analysis
The original question to be placed before the voter’s was presented as follows:
“Shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed on to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually for general government use, such as programs for affordable housing, providing tenant rental support and protecting local residents from displacement and homelessness, be adopted?”
The proposed revised question would be stated as follows:
“To fund general government uses, such as programs for affordable housing, providing tenant rental support, and protecting local residents from displacement and homelessness, shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually, be adopted?”
If the City Council prefers the revised form of the ballot question, then a new resolution calling for placing the matter before the voters needs to be adopted. If the City Council prefers the original question, no action need be taken.
Fiscal Impact
None
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
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Attachments
1. Resolution
2. Exhibit A