Belmont City Council Acts to Place Business License Tax Update on the November Ballot After Months of Engagement With Local Businesses
FOR IMMEDIATE RELEASE: July 9, 2024
On Tuesday, July 9, the Belmont City Council unanimously voted to place a business license tax update on the November ballot for voter consideration. The decision comes after several months of outreach including business forums, business focus groups, a business survey, and community presentations. Throughout this process, over a hundred Belmont businesses agreed that Belmont’s business license program needs to be updated and provided feedback critical to the development of an alternate model.
Assistant City Manager Kathy Kleinbaum said, “It was important for us to involve the business community in this effort. We have had extensive conversations with local businesses to hear their needs and created a more equitable model we are proud to offer our community.”
The City’s current business license program has not been comprehensively updated since 1976 and is overly complicated, sorting business into 16 categories and 25 subcategories—some outdated—and using multiple methodologies to fix the rate of levy. It also has a high base tax, disproportionately impacting local small businesses. To correct this, the Council has approved placing a ballot measure that modernizes and simplifies the program while making it fairer for small businesses and ensuring that large businesses pay their fair share.
As directed by the Council, the alternative model is intended to be revenue-neutral, with no significant financial gain or loss for the City. If enacted, the ballot measure will continue funding critical city services such as fixing potholes and repairing streets and sidewalks, 911 response times, keeping public areas safe and clean, maintaining the public works staff necessary to keep street projects like Ralston Avenue improvements and sewer projects on-time and on-budget, and the continued delivery of quality of life services including high-quality recreation programs, parks, open spaces, and sports fields.
“This measure will continue allowing the City to have local control over local funding for Belmont City services,” stated City Manager Afshin Oskoui. “Updating the business license tax program is an integral part of the City’s long-term plan to be self-reliant in the future; none of the money raised by the measure can be taken by Sacramento.”
Additional information about the Business License Update is available here.
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Media Contact:
Kathy Kleinbaum
Assistant City Manager
(650)598-4216
kkleinbaum@belmont.gov
The Belmont Story
The City of Belmont is located on the San Francisco Peninsula and combines the magnificent views of the Northern Santa Cruz mountains and San Francisco Bay with the strength and resilience of a long-established population of 27,110. The 144-city staff and leadership are dedicated to providing Belmont with sound infrastructure and well-connected mobility options, building upon our major corridors. Belmont is developing a thriving business community, while balancing sustainable fiscal operations and maintaining safe and healthy neighborhoods with a rich selection of recreational and cultural opportunities. These priorities work together to create a vibrant and enjoyable quality of life that is uniquely Belmont. For more information, please visit www.belmont.gov.
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