1 City of Santa Rosa
Economic Development
Subcommittee Meeting
August 2025
Agenda
1. Call to order and roll call
2.Remote Participation
3. Modifications to the Agenda
4. Announcements
5. Approval of Minutes
6. Public Comments
7. Matters held in Committee
8. Partner Reports
9. Department Reports
10. Future Agenda Items
11. Adjournment
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
8. Partner Reports
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
8.1 Sales Tax Overview - City of Santa Rosa
Finance Department (Informational)
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
Sales Tax Overview
➢ Bradley Burns (BB)
➢ Of the State’s 7.25% sales tax 1% is redirected to Santa Rosa along with 0.25% going to County transportation funds ➢ Transaction & Use Taxes (TUT) or District Taxes
➢ Voter approved local measures to increase sales taxes ➢ PSAP, City Measure Q, County Measure H, County Measure O ➢ For every $100 in taxable sales Santa Rosa receives $1.75 ➢ Bradley Burns vs. TUT
➢ Allocated differently for the same transaction
➢ Internet retail sales
➢ TUT – Tax revenue is allocated to jurisdiction where purchase was shipped ➢ Bradley Burns – Majority of tax revenue allocated to the County pool ➢ Car sales
➢ TUT – Petaluma resident buys a car in Santa Rosa, Petaluma receives TUT Sales Tax ➢ Bradley Burns – Petaluma resident buys a car in Santa Rosa, Santa Rosa receives BB Sales Tax ➢ Retail, Restaurant & Service Stations
➢ Both TUT and Bradley Burns allocate to jurisdiction where purchase was made ➢ County Pool
➢ California uses a countywide pool system to allocate local sales tax and use payment that cannot be identified with a place o f sale ➢ Generally allocated along basis of share of all taxable goods = a city generating 4% of taxable sales receives 4% of taxable goods 5 Sales Tax Rates by City and County
6 Taxing Agency Rate Purpose
C ounty 0.25% Open Space, C lean Water and Farmland Protection C ounty 0.25% C hild C are and C hildren's Health
C ounty 0.125% Library Maintenance, Restoration and Enhancement C ounty 0.25% Transportation Authority
C ounty 0.25% Smart
C ounty 0.25% Mental Health, Addiction and Homeless Services C ounty 0.50% Improved and Enhanced Local Fire Protection, Paramendic and Disaster Response C ounty 0.125% Parks
C ounty Total 2.000%
C ity 0.5% C ity- General Services
C ity 0.25% Public Safety (PSAP)
C ity Total 0.75%
State 1% Bradley Burns to C ity
State 0.25% Bradley Burns to C ounty Transportation Funds State 5% State General Fund
State 0.5% Public Safety, Local C riminal Justice
State 0.5% Health and Social Services Programs
State Total 7.25%
10.0% C ity of Santa Rosa- Total apllicable sales tax rate Local County State Total
Sonoma 1.50% 2.00% 7.25% 10.75%
C otati 1.00% 2.00% 7.25% 10.25%
Petaluma 1.00% 2.00% 7.25% 10.25%
Sebastapol 1.00% 2.00% 7.25% 10.25%
C loverdale 0.75% 2.00% 7.25% 10.00%
Santa Rosa 0.75% 2.00% 7.25% 10.00%
Healdsburg 0.50% 2.00% 7.25% 9.75%
Rohnert Park 0.50% 2.00% 7.25% 9.75%
Sales Tax by City - Sonoma County
TUT /District Taxes
County Tax Measures Total
Alameda 6 3.000%
Sonoma 8 2.000%
C ontra C osta 3 1.500%
Mendocino 5 1.250%
Santa C lara 6 1.250%
Marin 3 1.000%
Sacramento 1 0.500%
Napa 1 0.500%
Solano 1 0.125%
County TUT Sales Taxes
What are Taxable Goods?
➢California has a high
sales tax rate but
narrowest sales tax
base in the nation
➢ Services commonly
taxed in other states
include auto repair,
labor services and
many home services
* Infographic per State
Legislative Analyst Office
7 9. Department Reports
9.1 Economic Development Strategy Implementation Plan Update (Discussion)
9.2 Metrics and Indicators: Draft Quarterly Economic Report (Discussion)
9.3 Vacant Space Activation: Rank and Review Options (Discussion)
9.4 Entertainment Zones (Discussion)
9.5 Program Updates (Informational)
a. Business Attraction, Retention and Expansion Update
b. Entrepreneurship and Small Business Update
c. Economic Vibrancy and Resiliency Update (Events)
d. Community Investment Update (Art & Culture)
9.6 Other Updates or Announcements (Informational)
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
9.1 Economic
Development
Strategy
Implementation
Plan Update
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
Implementation Plan Progress as of August 1, 2025
BUSINESS GROWTH & RETENTION
ACTION ITEMS
PERCENTAGE COMPLETE
Objectives:
• Create Fiscal Stability
• Support Workforce
• Business-Friendly City
• Communication Strategy
• Increase Businesses
• Business Retention &
Expansion
• Support & Grow Businesses
• Support Entrepreneurship
• Remove Barriers
City of Santa Rosa
Economic Development Division
[email protected]
srcity.org/doingbusiness
Implementation Plan Progress as of August 1, 2025
ENTREPRENEURSHIP & SMALL BUSINESS
PERCENTAGE COMPLETE
Objectives:
• Create Fiscal Stability
• Support Workforce
• Business-Friendly City
• Communication Strategy
• Increase Businesses
• Business Retention &
Expansion
• Support & Grow
Businesses
• Support
Entrepreneurship
• Remove Barriers
ACTION ITEMS
Implementation Plan Progress as of August 1, 2025
PERCENTAGE COMPLETE
ECONOMIC VIBRANCY & RESILIENCY
Objectives:
• Downtown Housing
• Increase Revenue
• Support Economy
• Walkable
Neighborhoods
• Climate Action Goals
ACTION ITEMS
Implementation Plan Progress as of August 1, 2025
COMMUNITY INVESTMENTPERCENTAGE COMPLETE
Objectives:
• Upstream Investment
• Support Diverse Needs
• Address Childhood
Poverty
• Early Childhood Sector
ACTION ITEMS
9.2 Metrics and Indicators: Draft Quarterly
Economic Report (Discussion)
City of Santa Rosa Economic Development Subcommittee
Meeting
Asking for review of the
Quarterly Report and data
and provide any feedback
you may have
City of Santa Rosa Economic Development Subcommittee
Meeting
9.3 Vacant Space Activation: Rank and Review
Options (Discussion)
City of Santa Rosa Economic Development Subcommittee
Meeting
Vacant Space Activation Strategies
• Landlord Recovery Fund – A recovery fund to help landlords take a chance on new businesses.
For recovering losses incurred by leasing space to newly established business or to first time commercial property renters.
• New Commercial Renter Education Program – A support initiative offering workshops, toolkits, and one-on-one guidance to help new business owners understand leases, build out timelines, permitting, and financial readiness to reduce barriers to occupying vacant spaces. • Façade Improvement Grant Program 2.0 -- An updated version of the City’s façade grant program, offering expanded funding and streamlined processes to help improve the exterior appearance of downtown buildings, encouraging foot traffic and placemaking. • Vacant Unit Infill Grant Program – A small-scale grant opportunity to help entrepreneurs, artists, or nonprofits activate vacant spaces with short-term retail, cultural, or experiential uses, reducing vacancy and testing long-term viability.
City of Santa Rosa Economic Development Subcommittee
Meeting
9.4 Entertainment
Zones
9.5 Program Updates (Informational)
City of Santa Rosa Economic Development Subcommittee
Meeting
(a) Business Attraction,
Retention and Expansion
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
(b) Entrepreneurship and
Small Business
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
(c) Economic Vibrancy and
Resiliency
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
(d) Community Investment
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
9.6 Other Updates and Announcements
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
10. Future Agenda Items
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025
Adjourn
City of Santa Rosa Economic Development Subcommittee
Meeting April 2025