Culver City Moves Forward With Business License Tax Increase Ballot Initiative for the November 2022
At the June 13th City Council meeting, the City Council voted 3 to 2, with Councilmembers Vera and Eriksson opposing, to move forward with placing a Business License Tax rate increase on the November 2022 Ballot. The City Council also established an Ad Hoc Business License Tax Ballot Committee and appointed Councilmembers Fisch and Vera to the committee.
The Committee will work with City Staff on addressing the following matters: “(1) development of a new proposed business license tax structure, (2)whether or not to provide exemptions to businesses on the first $100,000 of gross receipts, (3) whether or not to allow for annual Consumer Price Index Increases, (4) writing the arguments in favor of the Measure if the city council votes to place it on the ballot, (5) If desired, a public education program to inform the public about the ballot measure.”
During the meeting, the business industry reiterated their opposition to a business license tax rate increase and the impact to small businesses who continue to experience severe COVID-19 related financial hardships. The City Council had previously discussed this proposal at its May 23rd meeting, at which time due to a tie vote no action was taken.
Prior to the June 13th meeting, the Association submitted a letter expressing our strong opposition to the ballot measure, the tremendous financial hardships that small business rental housing providers continue to endure which has only been exacerbated by current inflationary pressures and the loss of naturally occurring affordable housing which will likely result as small independent owners leave the business. Councilmembers Eriksson and Vera, recognizing the challenges facing the City’s small businesses maintained their opposition to placing the tax increase on the November 2022 Ballot.
It is anticipated that City Staff will return with a draft proposed ordinance and ballot measure language at the July 11, 2022 City Council meeting. The deadline for placing a measure on the November 2022 Ballot is August 12, 2022. We will continue to monitor this matter, advocate for our members interests and provide updates.