Emeryville to pursue business license tax reform after survey shows majority support

After a staff study session and presentation of voter polling, the Emeryville City Council on May 19 authorized staff to move forward with drafting a business license tax reform measure for the Nov. 3, 2026 ballot and to forego placing a parcel tax on the ballot at this time.

City Manager Latonya Balow opened the study session, and Finance Director Sharon Friedrichson presented the fiscal context and consultant polling results. Friedrichson said the general fund faces a structural deficit projected to grow in the coming years and that staff worked with consultants (Lou Edwards Group and Gottby Research) to test two primary ballot options: a reformed business license tax based on variable gross receipts and a parcel tax. The consultant reported 306 completed interviews of likely voters between March 30 and April 8, 2026, with a margin of error of ±5.4%.

On the business license reform question — described in the survey as updating 42‑year‑old business license rates with a variable gross‑receipts structure and independent oversight — roughly 76.4% of respondents expressed support (26.7% definitely yes; 49.7% probably yes). Staff said a reformed business license model could yield as much as $13.4 million annually in later years, noting the city’s current business license receipts are about $6.5 million and the reform would effectively modernize and redistribute tax burdens across business types.

By contrast, the parcel-tax question (a special tax requiring two-thirds voter approval) tested rates such as $98 per residential parcel (capped at $100) and a commercial rate by square foot; overall support hovered near 51.8%, below the 66.7% threshold required for a special tax. Staff presented alternative residential rates that raised support slightly but remained below the two-thirds requirement.

Council members asked staff about timing, phasing and outreach; consultants and the city attorney explained that state law limits length and detail of the ballot question itself (a short 75‑word question) but that staff and proponents can provide fuller information through outreach, FAQs and municipal information. Consultant Catherine Lou said legal requirements limit the ballot question text but staff would rely on education and outreach materials to explain uses and examples.

Vice Mayor Solomon moved and the council approved direction to proceed with staff preparing the business license tax reform measure, stakeholder engagement and drafting ballot language, with staff to return in July with documents to place the measure on the ballot in early August for the November election. The roll call vote to proceed was unanimous.