Emeryville council sends business license tax reform to November ballot, projects about $12.4M annually

The Emeryville City Council voted unanimously to place a business license tax reform measure on the Nov. 3, 2026 ballot that would replace the city’s per‑category flat fees with a tiered gross‑receipts structure and raise the small‑business exemption threshold from $25,000 to $100,000. Finance Director Sharon Fredrickson told the council the modeled measure would raise an estimated $12.4 million annually under the proposed structure, roughly $6 million more than the city expects under the current ordinance.

Under the draft language presented, commercial categories would simplify into about six tiers; professional/advanced services and real property rental were modeled at $4 per $1,000 gross receipts while general commerce and retail would remain at $1 per $1,000. The proposal also raises the ordinance cap on business license tax liability (from an inflation‑adjusted $451,000 to an $800,000 cap) and includes annual inflation adjustments. Council members asked about pass‑through entities, implementation timing, and whether administrative rules will be completed before the measure would take effect if approved. The council directed the city attorney to prepare an impartial analysis and authorized the council to file an argument in favor of the measure.