National City council delays business-license tax on Nov. ballot, forms business advisory process

The National City Council on Aug. 1 directed the city manager to work with the National City Chamber of Commerce to negotiate revisions to a proposed business-license (gross receipts) tax and to form a business-license tax advisory committee, but the council declined to place the staff-drafted measure on the Nov. 3, 2026 municipal ballot.

Council Member (speaker 12) moved that the city manager consult with the Chamber, convene a business-license tax advisory committee to meet monthly starting in September 2026, and explore alternatives to the current draft ordinance; the motion passed after a second. The advisory group is to include representatives from business categories and will report back to council, the motion said.

Pedro Garcia, the city's Economic Development Manager, summarized the staff proposal during a presentation and noted that polling of roughly 400 registered National City voters showed about 71% support for a ballot measure in June, rising to 77% after additional information was provided. "The intent of the business license tax reform is to try to provide those services to the community that both benefit the residents and the businesses of the community," Garcia said during his presentation.

Hours of public comment that followed the presentation highlighted deep opposition from many local businesses, trade groups and landlords who said the ordinance was released too late for meaningful review. Molly Kirkland of the Southern California Rental Housing Association testified: "We do ask that you vote against placing this measure on the ballot. ... It's been granted, you know, 8 potentially, but it would be, you know, kind of all or nothing, not phased in." Several speakers urged the council to slow the process and work collaboratively with business representatives.

After committee direction was approved, members returned to consider staff's recommendation to place the measure on the November ballot. A separate motion to reject the staff recommendation and not put the measure on the Nov. 3, 2026 ballot carried by majority vote. Council members who supported delaying the ballot cited the need for more outreach, clearer ordinance language and assurances that a ballot campaign would not be fought by an adversarial campaign.

City Manager Doug (as identified in the record) reminded the dais that the city faces a structural budget gap, saying the current fiscal-year shortfall is roughly $13,000,000 and could grow to $15,000,000 without action. "This step is just placing it on the ballot. There's a lot of work we can do between now and November," he said earlier in the meeting. The council's actions mean staff will continue outreach and the newly directed advisory process rather than sending staff's draft to the registrar of voters for the November election.

The council also recorded a formal motion to close public comment and later completed remaining agenda business before adjourning.