Belmont approves business license tax ballot measure
Like many other county residents, Belmont voters will vote this November on whether to update its business license tax, which would increase the rate for larger firms but likely decrease the amount owed for small establishments.
Under the current model, businesses could fall into one of more than 20 categories, which then determines its effective tax rate, and would have a base tax of about $340 each year. That means the tax burden typically falls more heavily on craft business owners, who tend to make less than $125,000, compared to other categories, such as restaurants and doctors’ offices, city staff said.
The new model would consolidate and simplify the number of business categories — from more than 20 to four categories — ranging from restaurants to professional services, such as technology firms. The rate would follow a gross receipts model where businesses would pay 40 cents to $1 per $1,000 of their total receipts revenue depending on the type of establishment, although cannabis operations would pay $100 per $1,000. It would also reduce the base rate to $25, which businesses would be exempt if their receipts are less than $10,000.
According to a recent staff report, more than 60% of businesses would see reductions in rates, although larger firms would likely see increases.
https://www.smdailyjournal.com/news/local/belmont-approves-business-license-tax-ballot-measure/article_01a8b184-3ff4-11ef-9fa0-33b9c0f3fd50.html