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Council Certifies Measure LR Results; Approves Two-year Phase-in for Business License Tax
Summary
City Clerk reported Measure LR passed with 77% of votes (9,259 yes to 2,835 no); council adopted a resolution certifying results and later approved a staff-recommended two-year phase-in for businesses whose new license tax exceeds $1,500 annually, delaying full collection until 2026 for eligible businesses.
The Paramount City Council certified the Nov. 5, 2024 election results for Measure LR and approved a staff-recommended phased implementation of the new business license tax at its Dec. 17 meeting.
City Clerk Heidi Luce reported that 12,364 ballots were cast in the measure, representing nearly 48% turnout of 25,801 registered voters in the city. The official vote count was 9,259 in favor and 2,835 opposed (77% in favor), exceeding the two-thirds threshold required for this consolidated election. The council read and adopted the resolution declaring the results.
Staff then presented a proposed phase-in procedure for businesses whose new annual license tax would exceed $1,500. Under the plan, eligible businesses would pay $1,500 plus 35% of the amount exceeding $1,500 in year 1 (2025) and then the full amount in year 2 (2026). For example, a business with a $2,000 tax liability would pay $1,825 in 2025 and the full $2,000 in 2026.
Finance staff projected business-license-tax revenue of $1.44 million (calendar year 2025) and $1.5 million (2026) under the phase-in approach, exceeding fiscal-year 2023-24 revenue of $1,046,000. Council approved the phase-in resolution by roll call with all five members voting yes.
Why it matters: The change modernizes city business-license calculations and provides a temporary transition to ease large, immediate increases for a small number of businesses.
Next steps: Finance will work with a consultant to implement the phase-in, identify eligible businesses, and notify affected taxpayers.
