2024.07.15 Speaker Cards-PC - Laserfiche WebLink

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July 15, 2024 The Honorable Jeff Gee, Mayor The Honorable Lissette Espinoza-Garnica, Vice Mayor The Honorable Alicia C. Aguirre, Councilmember The Honorable Kaia Eakin, Councilmember The Honorable Diane Howard, Councilmember The Honorable Elmer Martinez Saballos, Councilmember The Honorable Chris Sturken, Councilmember City of Redwood City, California 1017 Middlefield Road Redwood City, CA 94063 RE: Business License Tax Model Agenda Item Dear Mayor Gee, Vice Mayor Espinoza-Garnica and Members of Council: On your agenda for today’s Council meeting is Item 10.B(D), a report from the Council Business License Tax Ad Hoc Committee. While no information was included in the agenda packet, an update issued by the City Manager on Friday, July 12, 2024, indicated that the City was abandoning its pursuit of a gross receipts business license tax model, and instead, is seeking to modify the current per-employee model. We applaud the Council in recognizing the numerous flaws with a gross receipts model and the harm such a taxing model would have on the City and its businesses. However, we remained concerned with the lack of clarity , specificity and transparency of the City’s new proposal, which is set to be voted on by Council in one week. This rush to the finish to beat the clock on placing a measure on the November 2024 ballot is leading to bad practices in developing public policy and engaging stakeholders. Chamber San Mateo County is not opposed, in principle, with maintaining the current per - employee business license tax model. However, any modernization must include t hree essential elements: (1) reasonable increases in the per-employee rates, (2) a cap on the amount a business would be required to pay, and (3) a phased in approach of a reasonable cap over two to three years. Without these parameters, businesses could be forced into financial circumstances that are burdensome and harmful. If left unchecked, the rates and overall fees business would be required to pay could force many businesses to slow the growth of their businesses, relocate employees to other jurisdictions, move operations from Redwood City entirely, or avoid considering Redwood City when searching for new space . This is not a desired outcome that anyone wants to see. The Chamber urges Council to put responsible limits in place in any model it evaluates, to ensure you don’t drive business away or deter business from looking at Redwood City in the future. Any measure put to voters must show prudence and reflect the challenging economic