CC 07-31-2018 Item No. 5 Proposed Tax Measure PresentationPotential Restructuring of the Business
License Tax
July 31, 2018
Employer-Based Revenue Measure
Background
•March 6: 2018-19 Work Program adoption
•May 23-25: voter poll
•June 5: study session
•June 19: study session –business models
•July 3: study session –sample ordinance & reso
•July 16-24: ballot language poll
Initial Poll Summary
●74% believe businesses should help
pay for transportation infrastructure
used by their employees
●71% support increasing the BLT
●63% support increase for general
services
●69% support for specific purposes
Few Medium to Large Businesses
●One business
employs 2/3 of
Cupertino
workers
●About 90% of
employers have
less than 10
employees
0 5,000 10,000 15,000 20,000 25,000 30,000
1-10
11-50
51-100
101-250
251-500
501-1,000
1,001-5,000
5,001+
Estimated Employees
by Business Size
Model 1: per EE rate up to $325
Model 2: per EE rate up to $425
Potential Projects
●Transportation improvements
●Transit infrastructure
●Leverage revenue and partner
on regional projects
Outreach
Business Outreach
●Targeted outreach to 30 businesses that
would pay the per-employee tax
●One-on-one meetings
●2 Business Forums
●Chamber of Commerce Legislative Action
Committee
●City business newsletters (Biz Buzz)
Businesses…
●Agree that traffic is an issue and that they
need to be part of the solution
●Seek more time to engage with the City
on solutions
●Want to identify specific projects
(spending plan)
●Would like to explore alternative funding
options
Ballot Language Poll
●50-54% support for the proposed
ballot measure (up to $425 per-EE)
●Voters care most about a “well
designed spending plan” and “long-
term economic growth”
Recommendation
●Defer measure to 2020
●Engage with stakeholders to create
develop a spending and funding plan
by December 2019