From: Molly Kirkland
To: Clerk
Cc: Ron Morrison; Luz Molina; Marcus Bush; Jose Rodriguez; Councilmember Ditas Yamane; CMO; Josie Flores Clark Subject: SCRHA Letter - Item 8.1 – Business License Tax Reform (Gross Receipts Tax) Date: Tuesday, August 4, 2026 8:25:23 AM
Attachments: National City Business License Tax Aug 4 2026.pdf CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders.
Hello,
I am respectfully submitting the attached letter in advance of today’s council hearing.
Thank you,
Molly Kirkland, Director of Public Affairs
Southern California Rental Housing Association
9655 Granite Ridge Drive #200, San Diego, CA 92123
Office: 858.278.8070 | Direct: 858.751.2200
[email protected] | www.socalrha.org
Item 8.1
From: David Garcia
To: CMO
Cc: Finance; Pedro Garcia; Clerk
Subject: Follow-Up Request: Gross Receipts Bracket Detail Above $1M Date: Thursday, July 23, 2026 5:59:31 AM
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Dear Mr. Shulze,
Thank you to you and staff for the July 21st workshop and for the detailed materials in the agenda packet, including the HdL registry analysis.
I noted that the packet already includes some of the aggregate data I've been asking about — specifically that the top 100 businesses account for 57% of reported gross receipts but only 29% of total tax assessed, and that of the City's 5,480 active business licenses, 645 report gross receipts exceeding $1 million (with 4,835, or about 88%, at $1 million or below). This is genuinely useful, and I appreciate that it's already public.
What I'd like to request now is one additional level of detail: a further breakdown of that 645- business group above $1 million into brackets — for example $1–10M, $10–50M, $50–100M, $100–400M, and $400M+ — showing the number of businesses and aggregate (not individual) gross receipts in each bracket. The HdL registry analysis appears to already contain the underlying data to produce this; slide 7 alone tells us the top 100 are heavily concentrated, but not how that concentration is distributed above $1M.
I'd also note that the final ballot measure language moves to flat percentage rates by category (e.g., 0.1%–0.3%) rather than a tiered structure scaling with business size. Since your own commissioned survey found that 72% of likely voters preferred larger or more profitable business categories paying a higher percentage than smaller ones, over a flat percentage for all, I think the bracket data becomes even more important context for the Council's decision at the August 4th meeting — it would let the public and Council see how much of the tax base sits in the largest few businesses versus everyone else, regardless of which final rate structure is chosen.
I'm requesting this as aggregate, de-identified data only — not individual business filings.
I'd appreciate knowing whether this breakdown can be produced before August 4th, or whether it would need to go through a formal records request to HdL or the Finance Department.
Thank you again for your time on this.
David Garcia Ozua, PhD
Development Economist
| garciaozua.com
Item 8.1
From: [email protected] on behalf of eSCRIBE.Admin To: [email protected]; Shelley Chapel; Tonya Hussain Subject: Public Comment Received
Date: Tuesday, August 4, 2026 11:47:27 AM
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User Mitch Thompson has enter the following comment(s):
I own an 8-unit apartment community in National City. I paid $155 in business tax on my rentals in 2025. Based on .03% proposed rate in ballot measure, I would now pay $637 for the fee next year. That is a 411% increase in this tax. You propose that rental owners have the highest business tax rate of all. It's unfair. I also pay property taxes & my property paid about $3,600 in $ for City. You have many affordable rental units that pay no prop tax nor bus lic fee. Fix that. All should pay.
for Consideration of a Business License Tax Reform Measure for Placement on the November 3, 2026, General Municipal Election Ballot. in Special City Council Meeting - 5pm Regular 8/4/2026 5:00:00 PM
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Item 8.1