Laserfiche WebLink
REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />May 21, 2018 <br /> <br />SUBJECT <br />Opposition to Potential State Ballot Measure to Restrict Local Taxing Authority <br /> <br />RECOMMENDATION <br />1. Adopt a resolution opposing a potential ballot measure to restrict local taxing <br />authority <br />2. By motion, authorize the Mayor to send letters of opposition to members of the <br />California Business Roundtable that do business in Redwood City <br /> <br />BACKGROUND <br />The “Tax Fairness, Transparency and Accountability Act of 2018” is currently under <br />circulation for signatures statewide, and may appear on the November 2018 ballot for <br />voter consideration. <br /> <br />This initiative would drastically limit local revenue authority by broadening the definition <br />of state taxes to require two-thirds approval (instead of a simple majority) of the <br />electorate to raise new taxes or the governing body to raise new fees. For cities and <br />other local agencies, the measure applies retroactively and may void any local revenue <br />measure approved by local voters on or after January 1, 2018. In essence, any local <br />revenue measure that may be approved by voters in 2018 by a simple majority vote <br />would be invalidated, unless or until the measure is passed by a two-thirds majority. <br /> <br />This initiative is sponsored by the California Business Roundtable, an organization that <br />claims membership from some of the state’s largest companies. Some of these <br />companies also do business in Redwood City, including Comcast and Wells Fargo. Until <br />recently, Kaiser Permanente was a member of the California Business Roundtable but <br />Kaiser staff recently informed the City that Kaiser has withdrawn its membership. In <br />addition to the California Business Roundtable, this initiative has considerable support <br />from the soda beverage industry, as beverage companies are increasingly subject to <br />potential local taxes on their soda products. <br /> <br />The League of California Cities is opposed to the potential measure. The analysis and <br />recommendations in this report are based upon analysis prepared by the League. <br />9.C. - Page 1