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Business community and labor spar over pulled gross‑receipts business license tax; council to revisit June 30
Summary
Business owners, unions and local trade groups packed public comment to oppose a proposed gross‑receipts business license tax that staff pulled from the June 16 agenda; speakers urged more study, warned about competitiveness, and said the council should explore alternatives and a business advisory board.
City staff removed the proposed business license (gross‑receipts) tax measure from the June 16 agenda and told the public the item will return on June 30 — but residents and business leaders used the public‑comment period to urge the council to rethink the proposal.
"A gross receipts tax is not an accurate measure of a business's financial success," said Jennifer Ball, vice president of Ball Automotive Group and president of the Mile of Cars Association. "Gross receipts reflect revenue, not profitability. They do not account for the substantial cost businesses incur to operate, employ local residents, invest in their facilities, and serve our community."
Union speakers expressed mixed views. Crystal Cruz, president of ILW Local 29, warned that the port workforce would be harmed if certain industries are taxed out of existence, and Michael Thomas, a Local 29 business agent, described more than 900 employees at the 24th Street Terminal and asked the council to consider local jobs when weighing changes.
Firefighters' union president Jeremy Day endorsed exploring the reform as part of a broader budgeting conversation, telling council members: "The original budget that was proposed had a $16,000,000 structural deficit. To put that in perspective, that is the entire fire department." He said firefighters supported assessing both revenue and service priorities.
Business representatives — including the National City Chamber of Commerce — urged more outreach, a business advisory board and alternatives that do not put the city at a competitive disadvantage to neighboring jurisdictions such as Chula Vista and Lemon Grove.
The item was pulled from the agenda by staff for additional outreach and will return to the council on June 30 for further discussion. At the June 16 meeting several council members asked staff to work with business groups and bring community benefits and technical clarifications back to the council before any vote.
Sources: Public comments by Jennifer Ball (Mile of Cars Association), Crystal Cruz (ILW Local 29), Michael Thomas (ILW Local 29), Karen Azekar McManus (National City Chamber) and Jeremy Day (National City Firefighters).
