Council To Discuss Business Tax Hike Tonight

The city council will revisit a tonight on whether to place a measure on the November 2011 ballot increasing the business license tax for big businesses. At the time, the council asked for more information on how to differentiate between large and small businesses and how many large businesses operate in Burlingame, information members will discuss tonight.

As noted in a staff report, city staff advise against a tax increase while they try to generate interest in other revenue generators to raise funds for water and sewage infrastructure updates, such as increased parking meter fees and an assessment district. These improvements are expected to cost $9 million.

Burlingame businesses currently pay a $100 license tax, regardless of size.

“To me that is just a no brainer that [larger businesses] should be paying more than $100,” Nagel said.

There are 6,384 businesses in Burlingame. Of those businesses, 544 report employing 10 or more people and 992 report employing 5 or more people.

According to a staff report, if council members decided to increase the business tax for businesses with 10 or more employees in increments of $100--ranging from an increase of $100 to $400--additional revenue ranges from $54,400 to $217,600. If the same formula is applied to businesses with five or more employees, potential revenue grows from $99,200 to $396,800.

At the February meeting, Councilwoman Ann Keighran said there should be some exception to the business license tax increase for businesses in the proposed assessment district. “My concern is I didn’t want to double dip the same people,” Keighran said.

Councilmembers will discuss the issue further tonight at 7 p.m. in the Council Chambers.

For the full agenda of tonight’s meeting, click here.