• Potential Revenue Measures

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    The city is currently considering three separate new tax measures; a cannabis tax, an increase to the Transportation Occupancy Tax (currently 10%) and a significant revision to the business license tax (employer headcount tax).  

     

    Tax measures generally take years to model, gain community support and require significant outreach to the business community in order to understand the complexities and ramifications.  Feedback from the business community, who can be unrepresented in a voter ballot measure, indicates their support for the Cannabis and the ToT increase of 2% including collecting that ToT tax on Airbnb rentals.  

     

    The current annual business license tax raises $260,000 annually.  Current annual rates range from $0 for non-profits, $34 for most business, Mobile Vendors $150, Merchant Vendor (downtown) $778. Manufacturing $34-$104, Software: $34-$104 and Banks at $154  See Table here.   

     

    The proposed restructured business license tax is being modeled to raise from $5m to $10m/year.  Council is in the process of determining the specifics of the business license employer tax and which tax measures to put on the November ballot.

     

    It is essential to understand the unintended consequences of any tax on our diverse business community.  Any excessive employer tax can cause employers to decide to grow or relocate to more affordable cities. Companies can and do relocate as demonstrated by SGI, Sun Microsystems, and Adobe.  A progressive tax would negatively impact the medium-sized business like our retailers, local restaurants and grocery stores most, making it extremely difficult to attract and retain a diverse business community.  If any of these critical businesses providing everyday products and services, decide to close up shop in Mountain View, we will experience substantial retail leakage and job loss.

    Your feedback is incredibly important.  We appreciate you sharing the potential impacts to your business.  Please take the time to complete this SURVEY to help the chamber team advocate on behalf of you and your business. We believe in Mountain View and its unique and desirable quality of life.  We exist to empower, support, and protect our vibrant business community.

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