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Council directs staff to place restructured business‑license tax (Model 2) on November ballot; ordinance split planned
Summary
Brisbane’s council agreed June 18 to pursue a simplified business‑license tax (Model 2) and instructed staff to place the tax definitions before voters in the November 2026 election, while moving procedural/regulatory language to a separate ordinance to be adopted only if voters approve.
Brisbane City Council instructed staff June 18 to prepare a ballot measure for the November 2026 election that would retool the city’s business‑license tax under a simplified "Model 2" structure. The council also directed legal staff to split the current single ordinance so that the voter‑facing portion (tax definitions and methodology) appears on the ballot, while regulatory provisions (licensing procedures, enforcement and administrative rules) would be contained in a separate ordinance the council could adopt if voters approve the tax.
HDL consultant Eric Myers and city staff described three models considered earlier this spring. Under the chosen Model 2, the tax structure is simplified with a flat fee plus a threshold‑based supplemental tax aimed at making the system easier to administer and more equitable for micro and small businesses. "Model 2 simplifies the structure and helps support micro businesses as well as small businesses," staff said during the presentation.
Staff stressed a key protection for businesses: the proposal retains a sales‑tax offset so businesses that generate sales tax revenue to the city receive credit so they are not "double taxed" on the same economic activity. In addition, an existing capital improvement tax for very large businesses (10 million and over in reported gross income) was not changed and remains governed by special provisions that would require a two‑thirds vote to alter.
Because a business‑license tax is a tax, the city attorney and HDL recommended separating the voter‑approved calculation from administrative and procedural rules so future technical or enforcement changes would not require returning to the ballot. Council members supported that approach and unanimously polled in favor of moving Model 2 forward for the November ballot. Staff said the next steps are a redlined ordinance, a resolution placing the question on the ballot, and a follow‑up administrative ordinance if voters approve.
