CC 6-19-18 Written Communications Item #5 Business License Tax20455 Silverado Avenue
Cupertino, CA 95014
Tel (408) 252-7054
www.cupertino-chamber.org
Anjali Kausar
Chief Executive Officer
2018 BOARD OF DIRECTORS
BOARD OFFICERS
Andrew Walters, President
San Jose Water Company
Keith Warner, Immediate Past President &
VP Finance
Pacific Workplaces
Richard Abdalah, VP Membership
Abdalah Law Offices
Sandy James , VP HR & Staffing
Sand Hill Properties
Kevin McClelland, VP LAC
Leeward Financial & Insurance Services Inc.
Mike Rohde, VP Special Events
Main Street Cupertino
BOARD MEMBERS
Donna Austin
Cupertino Historical Society
Claudio Bono
Cupertino Hotel
Jessy Borges
Pacific Gas & Electric Company
Catherine Chen
State Farm Insurance
Art Cohen
Rod Diridon
Apple Inc.
Elizabeth Marchu
Technology Credit Union
Hanh Nguyen
Kaiser Permanente
Mark Tersini
KT Properties Urban, Inc.
Vivian Wong
Boston Private
John Zirelli
Recology
June 15, 2018
Mayor Darcy Paul and Cupertino City Councilmembers
10300 Torre Avenue
Cupertino, CA 95015
Subject: Concerns About New Business Tax
Dear Mayor and Councilmembers,
Viable tax measures take time to model, test, revise and require significant outreach to
the business community to understand the complexities and ramifications. We strongly
support improved transportation to Cupertino, Sunnyvale, Mountain View, and San
Jose. We recognize that this needs to be a regional solution with costs allocated to each
community. Once we define a project, we can turn to funding the project.
Other communities considering significant business tax increases, have held a series of
public meetings to develop parameters, goals and objectives. Through a participatory
process, our community can also have a transportation solution that meets specific
community needs.
It is essential that we take the time to understand the unintended consequences of any
tax on our diverse and dynamic business community. Any poorly designed or
ineffectively implemented employer tax can cause employers to decide to grow or
relocate to more affordable cities. Companies can and do relocate as demonstrated by
Silicon Graphics Inc, (SGI), Sun Microsystems, and Adobe.
Any tax to address a proposed problem, must be linked to a proposed solution.
A general revenue tax justified as part of a solution for traffic without linkage to a
specific solution or group of projects is premature and would harm our employment
base.
More can and should be done to address current traffic in and around Cupertino. We
propose that multiple alternatives be developed with pros and cons for each to allow the
entire community, along with businesses to help craft solutions that are a win-win,
including all options, such as a public/private partnership or a special tax. We would
like to offer working together on a statistically valid survey to ask Cupertino residents
their views on transportation and sources of funding.
We are committed to working with the city and our businesses to empower, support,
and protect our vibrant community.
Sincerely,
Andrew Walters
2018 President
CC 6/19/18 Item #5
2001 Gateway Place, Suite 101E
San Jose, California 95110
(408)501-7864 svlg.org
CARL GUARDINO
President & CEO
Board Officers:
STEVE MILLIGAN, Chair
Western Digital Corporation
JAMES GUTIERREZ, Vice Chair
Insikt
RAQUEL GONZALEZ, Treasurer
Bank of America
GREG BECKER, Former Chair
SVB Financial Group
STEVE BERGLUND, Former Chair
Trimble Inc.
AART DE GEUS, Former Chair
Synopsys
TOM WERNER, Former Chair
SunPower
Board Members:
BOBBY BELL
KLA-Tencor
DAWNET BEVERLEY
Donnelley Financial Solutions
GEORGE BLUMENTHAL
University of California, Santa Cruz
JOHN BOLAND
KQED
CARLA BORAGNO
Genentech
CHRIS BOYD
Kaiser Permanente
JOE BURTON
Plantronics
RAMI BRANITZKY
Sapphire Ventures
KEVIN COLLINS
Accenture
LISA DANIELS
KPMG
JENNY DEARBORN
SAP
MICHAEL ENGH, S.J.
Santa Clara University
TOM FALLON
Infinera
JOHN GAUDER
Comcast
KEN GOLDMAN
Hillspire
DOUG GRAHAM
Lockheed Martin
LAURA GUIO
IBM
STEFAN HECK
Nauto
ERIC HOUSER
Wells Fargo Bank
JULIA HU
Lark
AIDAN HUGHES
ARUP
VICKI HUFF ECKERT
PwC
MARY HUSS
SVBJ/SF Business Times
TOM KEMP
Centrify
ERIC KUTCHER
McKinsey & Company
JANET LAMKIN
United Airlines
JOHN LEDEK
BD Biosciences
JENNY LINTON
OSIsoft
ENRIQUE LORES
HP Inc.
MATT MAHAN
Brigade
TARKAN MANER
Nexenta
KEN MCNEELY
AT&T
BEN MINICUCCI
Alaska Airlines
MARY PAPAZIAN
San Jose State University
JES PEDERSEN
Webcor Builders
ANDY PIERCE
Stryker Endoscopy
KIM POLESE
ClearStreet
RYAN POPPLE
Proterra
RUDY REYES
Verizon
BILL RUH
GE
SHARON RYAN
Bay Area News Group
RON SEGE
Echelon
DARREN SNELLGROVE
Johnson & Johnson
JEFF THOMAS
Nasdaq
JED YORK
San Francisco 49ers
Established in 1978 by
David Packard
18 June 2018
Mayor and Members of the Cupertino City Council
The Silicon Valley Leadership Group uses several criteria to determine whether to
support a local or regional tax measure:
A.The measure should be for a fixed term and include a built‐in sunset (If
the measure does not include a sunset provision, the reasons should be compelling);
B.Funds generated by the measure should be used for specific and identifiable
purpose(s);
C.A consistent dollar amount is applied equitably to residential and commercial
property;
D.Measures involving parcel taxes should be capped at a certain level in
consideration of large businesses with many parcels (contiguous parcels for the
same business); and
E.The measure should contain a provision for a citizens’ oversight committee.
Based on our understanding of the approach currently being considered by the
Cupertino City Council for increasing the business license tax based on headcount, it
appears that none of the above criteria are satisfied.
Since none of the criteria listed above are met by the current proposal, the Silicon Valley
Leadership Group respectfully opposes the proposed business license tax based on
headcount.
Respectfully submitted,
Dan Kostenbauder
Vice President, Tax Policy
Silicon Valley Leadership Group
CC 6/19/18 Item # 5
Kirsten Squarcia
Subject:FW: Employee tax
From: primadona1 <primadona1@comcast.net>
Sent: Tuesday, June 19, 2018 8:36 AM
To: City Council <CityCouncil@cupertino.org>
Subject: Employee tax
Please do not levy an employee tax in Cupertino. It is unfair for those gainfully employed and already paying
taxes. Transportation issues are a regional issue and should be studied carefully. Donna Austin
Sent from my iPhone
Total Control Panel Login
To: citycouncil@cupertino.org
From: primadona1@comcast.net
Message Score: 1 High (60): Pass
My Spam Blocking Level: High Medium (75): Pass
Low (90): Pass
Block this sender
Block comcast.net
This message was delivered because the content filter score did not exceed your filter level.
Kirsten Squarcia
Subject:FW: Chamber of Commerce, June 15, 2018 News Release, Tax consideration for
employers
From: Connie Cunningham <cunninghamconniel@gmail.com>
Sent: Monday, June 18, 2018 12:12 PM
To: City Council <CityCouncil@cupertino.org>
Subject: Chamber of Commerce, June 15, 2018 News Release, Tax consideration for employers
Dear Mayor, Vice-Mayor and City Council Members:
Below is the email that I sent to Rick Kitson, Director of Communications, this morning, regarding their June
15, 2018, News Release. I know this topic is on tomorrow night’s Council agenda. Although I have not yet
read the staff report, I have been attending the City Council meetings long enough to know that you will be
giving this matter the serious thought it deserves, and making a decision that best fits our current
circumstances.
My opinion is that the Chamber of Commerce needs to step up to the role that business plays in our traffic
problems. If they can help design a private/public partnership that would be a better fit than taxes, then that
would be great. However, since our biggest employer has not, to date, stepped up to help, I do not know that
the Chamber will be able to do that.
You have my support.
Sincerely,
Connie Cunningham
_________________________
Subject: June 15, 2018 News Release, Cupertino Chamber of Commerce, Cupertino City Council considers
Taxing Jobs….
Dear Rick Kitson, Director of Communication:
In regards to concern about the consideration of taxes on employers, I grant the Board President's point about
unexpected consequences. Also, I understand his concern about rushing into things.
That said, I am wondering if the business community, including Apple, Inc., can provide a business/public
partnership idea that would be better than a tax. The focus of the tax, from my perspective, would be to fix the
problem of transportation, transit in Cupertino and surrounding areas. We have many minds thinking about the
transit issue, but the state and county organizations seem to not consider our west valley transportation
problems significant. With Vallco and the Oaks as major change factors in our city, in addition to Apple, Inc.,
it is imperative for businesses to help Cupertino provide answers. Traffic Reduction Strategies? Bicycle
Pedestrian Routes? Bus Rapid Transit on Stevens Creek? Additional busses on popular routes? Community
Shuttle (for which Cupertino is already asking input.) Overpasses to cross busy streets?
Do Chamber of Commerce members consider this the government’s problem, but not their own? By attracting
more employees, it is my opinion that businesses have a role to play in figuring out how their employees will
make it to work.
I urge you to work with your members to work with the city to design traffic solutions - and funding solutions,
too. If taxes are not optimum, then what solution is?
Although I understand the concern about rushing into things, it is my opinion that this issue has been around a
long time. No one is rushing into anything. The government has few tools at its disposal. One of them is
taxes. Businesses have other tools at their disposal. It is my opinion that it is time for business to recognize
their role in the traffic problem, and to step up to help the city — and their own employees— with traffic
solutions.
As a Cupertino resident who sees the VTA as unsupportive of transit in our area, I think it is necessary for all
affected parties to "think smart” and to “think now.” If you haven’t already, I suggest you view the
transportation charts from the Opticos team for the Vallco Specific Plan.
http://envisionvallco.org
I will email the Cupertino City Council. I am willing to see them work with the Chamber of Commerce, but I
am supportive of new taxes on business, if necessary, to solve our traffic problems.
Sincerely,
Connie Cunningham
31 year Cupertino Resident
Car owner & driver, transit supporter, bicyclist, walker
Supporter of Opticos design process for Vallco Specific Plan
____________
end of email
Total Control Panel Login
To: citycouncil@cupertino.org
From: cunninghamconniel@gmail.com
Message Score: 13 High (60): Pass
My Spam Blocking Level: High Medium (75): Pass
Low (90): Pass
Block this sender
Block gmail.com
This message was delivered because the content filter score did not exceed your filter level.
Kirsten Squarcia
Subject:FW: Apple Tax
From: Patrick Law <patricklaw7@gmail.com>
Sent: Sunday, June 17, 2018 6:45 PM
To: City Council <CityCouncil@cupertino.org>
Subject: Apple Tax
How dare you? Asking Apple for more tax after what it has done to the community? It already pays property
tax, its employees spend in the businesses throughout the city, and for those who live here pay property tax.
Total Control Panel Login
To: citycouncil@cupertino.org
From: patricklaw7@gmail.com
Message Score: 1 High (60): Pass
My Spam Blocking Level: High Medium (75): Pass
Low (90): Pass
Block this sender
Block gmail.com
This message was delivered because the content filter score did not exceed your filter level.
Kirsten Squarcia
Subject:FW: Proposal to Restructure Cupertino's Business Tax
From: jmoe@auxillium.com <jmoe@auxillium.com>
Sent: Sunday, June 17, 2018 10:24 PM
To: Savita Vaidhyanathan <svaidhyanathan@cupertino.org>
Subject: Proposal to Restructure Cupertino's Business Tax
Hi Savita,
I would like to comment on the proposal to restructure Cupertino’s business tax, which the city council will consider on
Tuesday. I am concerned that unilaterally increasing the tax rate for Apple to solve Cupertino’s transportation problems
is the wrong approach. A better approach is to work together with Cupertino’s largest employer and other businesses to
come up with a traffic solution to which all parties can contribute in an agreeable manner. Working together to achieve
great things has been your approach, and I hope that you will continue on that path and reject this proposal.
To say that 71% of surveyed Cupertino voters support this tax change is misleading. The question they were asked was
“Would you support an increase in the business license tax with large companies paying substantially more than small
businesses?” I too would answer that question yes, with the idea that large companies should pay 2‐3 times more. If
asked whether Apple’s business license should be increase 7,000‐40,000 times more, the answer would be different.
I am sorry that I won’t be able to attend the City Council meeting on Tuesday because FUHSD has a board meeting at the
same time, but I wanted to share my thoughts on the issue.
Regards,
Jeff Moe
Total Control Panel Login
To: svaidhyanathan@cupertino.org
From:
srs0=kaqfnp=je=auxillium.com=jmoe@eigbox.net
Message Score: 1 High (60): Pass
My Spam Blocking Level: High Medium (75): Pass
Low (90): Pass
Block this sender
Block eigbox.net
This message was delivered because the content filter score did not exceed your filter level.
Kirsten Squarcia
Subject:FW: Looking for comment on business tax options for Cupertino
From: James Nani <james.nani@law360.com>
Sent: Tuesday, June 19, 2018 11:39 AM
To: Jacqueline Guzman <JacquelineG@cupertino.org>; Brian Babcock <BrianB@cupertino.org>; Darcy Paul
<DPaul@cupertino.org>; Rod Sinks <RSinks@cupertino.org>; Savita Vaidhyanathan <svaidhyanathan@cupertino.org>;
Barry Chang <BChang@cupertino.org>; Steven Scharf <SScharf@cupertino.org>
Subject: Looking for comment on business tax options for Cupertino
Hello, this is James Nani with Law360. I'm writing a story based off of the documents that are being shared on
changes to Cupertino's business license tax and was hoping you may be able to talk or comment on the newest
documents, please.
I was reading through the staff report and was wondering which one of the options you would recommend and
hoping to just get some general comment as to what comes next? I know there's a meeting on this tonight but is
there going to be any vote? Which option do you prefer and why? Has there been any weighing in or push back
from Apple on this?
Hoping to chat or get comment for a story I'm writing today, please.
Thank you.
James Nani
--
James Nani
Tax Correspondent
111 West 19th St.
5th Floor
New York, NY 10011
O: 646.783.7128
james.nani@law360.com
www.law360.com/tax-authority
Follow Law360 on Twitter
Total Control Panel Login
To: bchang@cupertino.org
From: james.nani@law360.com
Message Score: 1 High (60): Pass
My Spam Blocking Level: High Medium (75): Pass
Low (90): Pass
Block this sender
Block law360.com