Measure BB - Business License Tax Reform

This measure was placed on the ballot by the City Council. It requires a majority vote for passage.

The City currently imposes a business license tax under Chapter 1 of Title 3 of the Emeryville Municipal Code on any person engaging in business in the City. The existing business license tax ordinance contains 56 business categories. Most of these categories impose a tax at a flat rate, or at a rate measured by the number of employees, days of operation, vehicles, or other measure of assets used by the business. A catch-all tax of 0.1% of gross receipts applies to any business not in a particular category.

This measure would amend Chapter 1 of Title 3 to revise the business categories and to change the measure of most taxes to gross receipts. The new categories would be General Commerce/Retail, Services, Professional and Advanced, Contractor, Real Property Rental, Utility, and Unclassified. General Commerce/Retail and Utility would pay an annual tax of 0.1% of gross receipts. Services, Contractor, and Unclassified would pay an annual tax of 0.3% of gross receipts. Real Property Rental and Professional and Advanced would pay an annual tax of 0.4% of gross receipts. The tax rates for cannabis businesses and card rooms, which are significantly higher, would not be changed. The tax rates for massage parlors would also be unchanged.

Small businesses with annual gross receipts of $100,000 or less would only pay $25. This threshold would be adjusted annually based on the percentage change in the Consumer Price Index for the San Francisco-Oakland-Hayward area. Except for new businesses, gross receipts from the preceding year would continue to be used to measure the tax for the current year. The tax for new businesses would initially be based on estimated gross receipts and would be trued up at the end of the year.

The tax or a business with gross receipts that are less than its operating costs in the City would measure its tax by using those costs as its gross receipts.

The maximum annual business tax cap would be increased from $300,000 to $800,000, with this amount adjusted annually by the percentage change in the Consumer Price Index for the San Francisco-Oakland-Hayward area.

No business tax would apply to any business exempt from tax under the constitution or laws of the United States or the State of California.

The business tax rates adopted by the measure would apply beginning January 1, 2027, and the tax for calendar year 2027 would be calculated based on gross receipts from calendar year 2026.

The revenue from this tax would continue to be deposited into the City’s General Fund where it could be used for any legitimate municipal purpose.

/s/ JOHN I. KENNEDY, City Attorney

The Emeryville City Council unanimously agreed to place Measure BB on the ballot to modernize our nearly 42-year-old business license tax system, generate additional locally controlled revenue, and help protect the public safety, essential services, and quality of life our community relies on.

Measure BB creates a simpler, fairer business license tax structure that better reflects Emeryville’s economy today. It streamlines business classifications and helps ensure that larger, more profitable businesses pay their fair share while small businesses are not unfairly burdened. Measure BB applies only to businesses and does not increase taxes on residents or homeowners.

If approved by voters, Measure BB is expected to generate approximately $6 million annually in locally controlled revenue to help maintain community priorities identified through public outreach, including:

• maintaining rapid 9-1-1 emergency response;
• improving crime prevention and public safety;
• keeping parks and playgrounds safe and clean and expanding access to green spaces;
• repairing and maintaining streets for all modes of transportation;
• providing senior and youth services;
• supporting small businesses, jobs, and economic development; and
• maintaining emergency and disaster preparedness programs.

Measure BB also includes strong accountability protections, including independent citizens’ oversight, public spending disclosure, and annual reports to the community. By law, Measure BB funds remain locally controlled and cannot be taken by the State.

Emeryville has changed dramatically over the past four decades. It is time for our business license tax system to reflect the Emeryville of today while protecting the services our community depends on for the future.

Modernize an outdated system. Protect essential services. Keep Emeryville safe and strong.

The Emeryville City Council respectfully asks you to vote YES on Measure BB.

/s/ SUKHDEEP KAUR, Mayor
/s/ MATTHEW SOLOMON, Vice Mayor
/s/ DAVID MOURRA, Emeryville Council Member
/s/ KALIMAH PRIFORCE, Emeryville Council Member
/s/ COURTNEY WELCH, Emeryville Council Member

Q:  What is Measure BB?

A:  On July 21st, the Emeryville City Council unanimously placed Measure BB on Emeryville’s November 3rd Municipal Election ballot. Emeryville’s existing business license tax is 42 years old. If enacted, Measure BB updates rates between 0.1% to 0.4% ($1 to $4 per $1,000) of annual gross receipts, depending on business type, while also providing an additional $5.9 million in locally controlled funding to help maintain core city services. Measure BB is not a tax on Emeryville residents who are not business owners.

Q:  Who pays for Measure BB?

A:  Measure BB is paid only by businesses doing business in Emeryville and will not increase taxes for residents or homeowners.

Q:  How will Measure BB reform Emeryville’s business license?

A:  Measure BB proposes updating and simplifying the existing and outdated business license structure to ensure that large businesses pay their fair share and that small business and homeowners are not disproportionately paying more to maintain Emeryville’s safety and quality of life.

Q:  Does Measure BB address public safety?

A:  If enacted, additional local funding from Measure BB can help maintain rapid 911 emergency services in case of an accident, disaster, or medical emergency.

Q:  How was Measure BB developed?

A:  Measure BB was placed on the ballot after collecting input from business owners, stakeholders, and residents. The priorities identified by our community include keeping parks and playgrounds safe and clean; repairing potholes and maintaining streets; maintaining 911 emergency response; improving crime prevention and reducing property/retail crime, and auto burglaries; and maintaining senior and youth services.

Q:  Does Measure BB include accountability provisions?

A:  Yes. By law, all Measure BB funds are locally controlled, cannot be taken by the State, and are subject to public spending disclosure, independent citizens’ oversight, and annual reports to the community.

Q:  What else is on the Municipal Election ballot?

A:  Emeryville voters can also select two representatives for City Council.