Resolution/Business License Tax 2.7% adjustment Increase, Effective July 1, 2025 Page 1 of 2 Rev: 7/27/2023
RESOLUTION NO. 25-9433
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
ADJUSTING THE BUSINESS LICENSE TAX by 2.7% AS
AUTHORIZED IN SANTA CLARA CITY CODE SECTION 3.40.160,
EFFECTIVE JULY 1, 2025
WHEREAS, Measure H, approved by Santa Clara voters on November 8, 2022, established a framework for periodic adjustments to the Business License Tax (Business Tax) to reflect economic changes and ensure equitable contributions from businesses operating in the City of Santa Clara;
WHEREAS, Section 3.40.160 of the Santa Clara City Code, which was adopted pursuant to Measure H, provides for annual adjustments to the Business Tax based on the Consumer Price Index (CPI) for All Urban Consumers for All Items for the San Francisco- Oakland-Hayward Area, as reported by the U.S. Bureau of Labor Statistics (BLS) ; WHEREAS, the Business Tax revenue supports public safety, infrastructure maintenance, economic development programs, and community services and CPI adjustments allow the City to mitigate the impacts of inflation;
WHEREAS, the most recent CPI data for February 2025 indicates an annual inflation rate of
2.7%; therefore, it is appropriate to adjust the Business Tax rates by that percentage for Fiscal Year 2025-26, effective July 1, 2025 as shown in Attachment 1; and WHEREAS, the City published a public notice of the proposed adjustment in the Santa Clara Weekly Newspaper.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the findings as set forth above are hereby adopted by the City Council of the City of Santa Clara (City Council).
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2. That the City Council hereby approves the Business Tax adjustment of 2.7% CPI increase, effective July 1, 2025. This adjustment is made pursuant to Section 3.40.160 of the Santa Clara City Code, which authorizes annual inflation-based updates to the Business License Tax.
3. That a true and correct copy of the Resolution shall be kept on file in the Office of the City Clerk and in the Billing Division of the City Finance Department.
4. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE 29TH DAY OF APRIL, 2025, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT : COUNCILORS:
ABSTAINED: COUNCILORS:
Attachments incorporated by reference:
1. Business Tax Rate Adjustments for July 1, 2025
Chahal, Cox, Gonzalez, Hardy, Jain, and Park, and
Mayor Gillmor
None
None
None
ATTEST:~---=..a.--.,ie...=oo:~·~~--/?--- :
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Resolution/Business License Tax 2.7% adjustment Increase, Effective July 1, 2025 Rev: 7/27/2023
CITY OF SANTA CLARA
FINANCE DEPARTMENT
Date Effective: July 1, 2025 Resolution No. 25-9433
Supersedes Business Tax & License
Effective: July 1, 2023
Resolution No. 22-9130 approved
July 12, 2022
BUSINESS TAX ADJUSTMENTS
ANNUAL ADJUSTMENTS FOR INFLATION:
The Business Tax applies to all businesses operating in the City of Santa Clara and is assessed based on the number of employees or rental units, in accordance with Santa Clara City Code Chapter 3.40 (Business Tax). Per Section 3.40.160 of the City Code, adjustments to this tax are allowed annually based on increases to the Consumer Price Index (CPI-U) for the San Francisco-Oakland-Hayward Area, as reported by the U.S. Bureau of Labor Statistics (BLS).
RATES:
Beginning July 1, 2025, the Business Tax rates will increase by 2.7% based on changes to the CPI Index. The annual adjustments are based on the CPI Index set as of February each year.
The table below sets the rates as of July 1, 2025.
Category
Current Rate
(Effective July 1, 2023)
New Rate
(Effective July 1, 2025)
Per Employee $45.00 $46.22
Rental Unit Tax $15.00 $15.40
Business Tax Cap $350,000 $359,450