Bay Space voters to giant companies: Pay up!
The most recent election tallies present enterprise tax measures in Oakland, Santa Clara, Palo Alto and Los Gatos passing by double-digits, the San Jose Mercury Information reported.
For cities with looming price range deficits, thousands and thousands in new enterprise {dollars} will imply new income to fund applications and housing, fewer spending cuts and fewer reliance on debt and out of doors cash.
Some credit score electoral success to rigorously crafted voter pitches vetted by massive enterprise and keeping off costly anti-tax campaigns. In Palo Alto, the town collaborated with the Palo Alto Chamber of Commerce and the Silicon Valley Management Group to thwart a unfavourable marketing campaign.
“The compromise method was important,” Mayor Pat Burt advised the Mercury Information. “They had been indicating they had been going to spend limitless funds to oppose not solely the enterprise tax measure however the fuel switch price poll measure that was additionally on the poll.”
The enterprise tax in Palo Alto, the primary of its form in metropolis historical past, received a convincing victory as 10,372 voted for it whereas 5,080 voted in opposition to, as of Thursday.
The tax, a 7.5-cent levy on workplace house, would start in 2026 and is anticipated to boost $8 million a yr to fund reasonably priced housing, public security and different applications. It might faucet giant corporations reminiscent of Palo Alto Networks, VMware and Tesla.
Oakland and Los Gatos additionally struck compromises with enterprise organizations.
In Oakland, voters authorised a enterprise tax measure by 25,399 to 12,685, in the newest depend. The progressive tax overhauls a tax that had small mom-and-pop companies paying the identical flat tax fee as big companies reminiscent of Kaiser Permanente, Clorox and Sutter Well being.
New charges imply massive companies pays a a lot increased tax fee than smaller corporations, with the town anticipated to reap $20.9 million a yr.
Los Gatos Metropolis Council members labored with enterprise leaders reminiscent of Netflix, which is headquartered there, to plot a tax that averted company ire. Voters authorised that tax by 4,373 in favor and three,699 in opposition to.
The measure will revamp the town’s enterprise licensing tax of 30 years to seize extra {dollars} from e-commerce and deliveries.
The tax will enhance contributions from the town’s prime employers. The highest 5 corporations would pay $165 for each $550,000 earned above $12 million. The present tax requires corporations reminiscent of Netflix to pay $75.
The brand new revenues of $1.2 million will assist Los Gatos fill a $3.5 million price range gap.
In Santa Clara, voters authorised a measure to overtake its enterprise tax to assist fill a $20 million price range deficit. The tax will embody a brand new “headcount” system and cost $45 per worker with a cap of $250,000 beginning July 2023.
Santa Clara additionally had not up to date its tax system in 30 years on prime employers that embody Nvidia, Utilized Supplies and the San Francisco 49ers.
— Dana Bartholomew