Foster City OKs new business license tax ballot measure
Foster City voters will decide whether to enact an updated business license tax, as the council approved a new model expected to generate an additional $1.4 million in annual revenue.
The proposal would increase the rate for many businesses, especially the city’s largest, ranging from 75 cents per $1,000 in gross receipts to $3 per $1,000 in gross receipts, depending on the firm’s revenue. The city’s smallest businesses would only be subject to a minimum $100 annual tax.
Other models proposed by staff would have increased the maximum amount from the current cap, roughly $28,000, to $500,000, which did not receive council support. The limit that will be on the ballot will increase the cap to $250,000.
Updating the BLT revenue stream has been a frequent topic of discussion among several Peninsula cities as of late — including South San Francisco, Belmont and Redwood City — especially as budget deficits abound and other income sources, such as property-tax-in-lieu-of-vehicle license fees, were recently put in a precarious position.
https://www.smdailyjournal.com/news/local/foster-city-oks-new-business-license-tax-ballot-measure/article_3361b85e-457d-11ef-b627-8be783b82c68.html