9655 Granite Ridge Drive
San Diego, CA 92123
T: 858.278.8070
www.socalrha.org
July 20, 2026
Honorable Ron Morrison, Mayor and Members of the City Council National City
1243 National City Blvd
National City, CA 91950
TRANSMITTED ELECTRONICALLY
RE: Item 5.1 – Business License Tax Reform (Gross Receipts Tax) Dear Mayor Morrison and Members of the City Council:
On behalf of the Southern California Rental Housing Association (SCRHA), I am writing to oppose the placement of a new “gross receipts tax” on the November 2026 ballot.
Rental housing providers already pay a significant amount based on a tiered gross receipts model plus a flat fee based on unit count. The current proposal would triple that amount for many residential rental properties. Because rental housing serves approximately 70% of National City residents, the proposed increase would place the highest tax burden on properties that provide homes for the majority of the city’s residents.
Gross receipts do not represent profitability. Expenses such as insurance, utilities, maintenance, and compliance continue to rise. The proposed increase in the Business License Tax would almost certainly affect renters, as housing providers may need to account for yet another factor in higher operating costs.
SCRHA understands that the city has a deficit and is facing increased financial pressure.
However, we remain concerned about such a significant increase at a time when cost-of-living concerns are already exceedingly high. For these reasons, SCRHA requests that you decline to place the proposed gross receipts tax on the ballot. Should the Council choose not to pursue the fall ballot measure, SCRHA will continue to serve as a constructive stakeholder in future discussions about the City’s fiscal challenges.
Sincerely,
Molly Kirkland
Director of Public Affairs