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). // // //
CITY OF SANTA CLARAFINANCE DEPARTMENT
Date Effective: July 1, 2025 Resolution No. 25-9433Supersedes 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 $46.22Rental Unit Tax $15.00 $15.40Business Tax Cap $350,000 $359,450