During a recent city council meeting, officials discussed two significant propositions aimed at amending the Business License Tax (BLT) and the Transient Occupancy Tax (TOT) in Monterey Park. The council is considering placing both measures on the ballot for voter approval, with the potential for either one to be selected or for no action to be taken.

The city has engaged the community through 11 meetings to gather input on these proposals, which were communicated in multiple languages, including English, Spanish, and Chinese. Feedback indicated strong support for the TOT, which is a locally controlled general tax expected to generate approximately $500,000 annually from a proposed 1% increase. This revenue would be allocated to the city’s general fund, benefiting local services.

In contrast, the BLT has not been updated since 1989. The proposed changes aim to modernize the tax structure, shifting from a per-employee basis to a gross receipts model. This reform is anticipated to generate around $1.2 million annually, with the goal of ensuring fairness and equity among the city’s approximately 4,000 businesses. The new structure would particularly benefit small businesses, defined as those with gross revenues under $500,000, by maintaining a flat fee that has not increased in over three decades.

Council members expressed appreciation for the community's involvement in shaping these proposals, noting that adjustments were made based on public feedback. Discussions also highlighted the importance of aligning Monterey Park’s tax rates with those of surrounding cities, with current TOT rates in nearby areas ranging from 12% to 14%.

The council emphasized the need for a supermajority vote to place these measures on the ballot, followed by a simple majority from voters for approval. The meeting concluded with a consensus on the necessity of modernizing the tax structure to reflect the current economic landscape, ensuring that businesses contribute fairly based on their revenue generation. Further discussions will focus on potential caps for the gross receipts tax to protect larger businesses from disproportionate taxation.