Pass: 3,077 / 73.2% Yes votes ...... 1,126 / 26.8% No votes

See Also: Index of all Measures

Impartial Analysis

Title 5 of the Foster City Municipal Code, Chapters 5.04-5.40, Business Licenses Generally, in effect since 1972, requires businesses operating within Foster City to obtain a business license from the City. Since its adoption in 1972, this ordinance has never been amended. If approved by a majority of voters, this measure would amend Title 5, Chapters 5.04 to 5.40 of the Foster City Municipal Code. A copy of the proposed ordinance is available at the City's website at http://www.fostercity.org . Currently the cost of a business license tax is calculated based on a business's annual gross receipts at an amount equal to $0.75 per $1,000 of gross receipts. If this ballot measure is approved, the rate would remain the same. However, the minimum cost of a business license would increase according to the following table: Effective Date General Contractor Specialty Contractor Solicitor All Other Businesses Current Rate $50 $25 $25 $25 January 1, 2014 $100 $50 $50 $50 January 1, 2015 $150 $75 $75 $75 January 1, 2016 and thereafter $200 $100 $100 $100 In addition, the amount of gross receipts limit upon which the business license is computed would increase according to the following table: Effective Date Gross Receipts Limit Calculated Maximum Tax Amount Current Rate $5,000,000 $3,750 January 1, 2014 $10,000,000 $7,500 January 1, 2015 $20,000,000 $15,000 January 1, 2016 $30,000,000 $22,500 Starting on January 1, 2017, and every year thereafter, the gross receipts limit would be adjusted based upon the change from October to October in the Consumer Price Index for the San Francisco / Oakland / San Jose area (Urban Consumers Rate), rounded to the nearest $10,000. Businesses with multiple corporate entities operating from the same location in the City would be required to obtain business licenses for their three (3) entities with the largest gross receipts. The ordinance would also clarify various provisions relating to the imposition, administration and issuance of business licenses. The full text of the ordinance should be consulted for further specifics regarding these matters. The revenue from business licenses is placed in the City's general fund. Money from this fund supports general City services and functions, including: police, fire, parks and recreation, and repair and maintenance of essential infrastructure such as the levee, lagoons, and streets. A "yes" vote on this measure is a vote to approve and authorize the changes in Title 5, Chapters 5.04 to 5.40 of the Foster City Municipal Code as described above. This measure constitutes a general tax which can be approved by a simple majority vote. A "no" vote on this measure is a vote to maintain the provisions of the existing business license ordinance as identified in Title 5, Chapters 5.04 to 5.40 of the Foster City Municipal Code.