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<br /> <br />califesciences.org <br />July 19th, 2024 <br /> <br />Hon. Mayor Jeff Gee and Members of the City Council <br />c/o City Clerk <br />1017 Middlefield Road <br />Redwood City, CA 94063 <br /> <br />RE: Proposed Changes to the City of Redwood City’s Business License Tax <br /> <br />Dear Mr. Mayor and Members of the City Council; <br /> <br />As representatives of the life sciences industry, directly employing over 400,000 <br />Californians, California Life Sciences wishes to share our concerns regarding the recent <br />proposed lifting of the cap on the per-employee business license tax (BLT) in <br />Redwood City. California Life Sciences represents over 1,200 entities representing <br />pharmaceutical, biotechnology, medical technology, and academic research institutions <br />throughout California. While we understand that a challenging fiscal year may be on the <br />horizon and that policymakers might have to make difficult choices regarding Redwood <br />City’s tax revenues and budget deficit, we believe that lifting the BLT cap will dramatically <br />and negatively impact companies investing in research and development in Redwood City <br />and compromise the city’s long-term economic health. <br />As our companies continually evaluate worldwide investment decisions, <br />California’s tax incentives have previously encouraged them to invest in California <br />because the state recognized the value of high-quality research and the jobs and tax <br />revenue that comes when that research turns into locally-manufactured products. This has <br />kept California at the epicenter of the life sciences industry, birthing and sustaining <br />thousands of companies, employing millions of Californians, and innovating countless <br />products that save lives and revolutionize quality-of-life. The life sciences industry <br />provides a unique return on investment with respect to research and development (R&D). <br />Nationwide, life sciences companies have collectively invested more than $1 trillion dollars <br />in R&D since 2000, establishing the biopharmaceutical sector as the most R&D-intensive <br />industry in the U.S. economy. In fact, the biopharmaceutical industry invest s <br />approximately six times more in R&D as a percentage of sales than all other manufacturing <br />industries. <br />We understand that ongoing structural deficits have led Redwood City to consider <br />ameliorating those budgetary headwinds by making changes to its BLT paradigm. <br />However, we strongly urge the city to take a measured approach as it considers increases <br />to the current per employee rate and subsequent cap, due to its potential to undercut <br />Redwood City’s long-term economic health. We wish to reaffirm our commitment to <br />working with the City Council and municipal government to address its fiscal concerns.