Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Business License Tax topic
No spam. Unsubscribe anytime.
Council delays business license tax to allow more study, directs staff to continue analysis toward 2028 ballot
Summary
After a staff presentation and extended public comment that included concerns from businesses and trade groups, council voted 4–1 to direct staff to continue fiscal analysis and outreach with the aim of preparing a business license modernization measure for the November 2028 ballot rather than placing a measure on the November 2026 ballot.
Deputy City Manager Eric Engelbart presented an updated business license tax model July 6, summarizing outreach, polling and a revised gross‑receipts proposal that staff adapted from other cities. Key changes since the June 8 version included preserving existing rates for property rental and mobile home parks, raising the warehouse rate to $4.50 per $1,000 in gross receipts, adding a 25% gross‑receipts discount for the largest businesses above a specified threshold, and reclassifying public utilities under a manufacturing rate in response to legal guidance.
Engelbart told the council that general‑fund revenue cannot be legally earmarked for a single service area and that additional analysis would be required to incorporate climate or resource‑use factors. He also summarized outreach results: 997 survey responses and a split between support and requests for additional detail.
Public comment was heavily mixed. Kristen Anderson, a long‑time local business owner, and representatives of the San Leandro Chamber of Commerce and Bay East Association of Realtors urged the council to slow the timeline and conduct more targeted business outreach and analysis before placing a measure on a ballot. They highlighted Union City’s multi‑year outreach as a model and warned of potential unintended impacts on hiring, investment and small housing providers. Other commenters, including Douglas Spalding and residents, supported modernization to align with neighboring cities and argued a phased rollout could reduce shocks.
Council members debated two approaches: move forward toward a nearer ballot or extend time for analysis and stakeholder work. Council member Sue Bowen moved to direct staff to continue additional fiscal analysis and public engagement with a goal of bringing a proposed business license modification to the November 2028 ballot (option B presented by staff). The motion, seconded by Mayor Gonzales, passed 4–1 (Gonzales, Bowen, Simon and James Aguilar yes; Council member Dylan Bolt no; two members absent). Council directed staff to continue outreach and more detailed fiscal analysis before returning with a refined proposal.
