10. 26-0347 Consideration of Polling Results on a Potential Business License Ballot Measure and Direction to Schedule the Consideration of Resolutions to Present to the Voters the Finalized Ballot Measure Updating the Business License Tax for the August 4, 2026, City Council Meeting (No Immediate Revenue Impact) (Finance Director Bretthauer).
(Estimated Time: 1 Hr.)
PROVIDE DIRECTION
My primary concern is affordability. The proposals shift a larger share of the tax burden to businesses with higher gross receipts. Businesses generally have only a few ways to respond to higher costs: they can raise prices, reduce expenses such as staffing or hours, accept lower profits, or choose not to expand or invest in the community. While every business is different, retailers operating on relatively thin margins often pass at least some of those costs on to consumers. Before adopting a new tax structure, I hope the Council will consider these questions: Will higher Business License Taxes on larger retailers result in higher prices for residents? Could the proposal unintentionally make everyday shopping less affordable for the people who live here? I support a healthy business community and understand the City's need to modernize its tax system. I simply ask that the Council carefully consider not only who pays the tax, but who ultimately bears the cost.
My primary concern is affordability. The proposals shift a larger share of the tax burden to businesses with higher gross receipts. Businesses generally have only a few ways to respond to higher costs: they can raise prices, reduce expenses such as staffing or hours, accept lower profits, or choose not to expand or invest in the community. While every business is different, retailers operating on relatively thin margins often pass at least some of those costs on to consumers. Before adopting a new tax structure, I hope the Council will consider these questions: Will higher Business License Taxes on larger retailers result in higher prices for residents? Could the proposal unintentionally make everyday shopping less affordable for the people who live here? I support a healthy business community and understand the City's need to modernize its tax system. I simply ask that the Council carefully consider not only who pays the tax, but who ultimately bears the cost.