Despite opposition, city pushes for business tax

So if you're a service business located in Los Altos, do you still pay for revenues generated in Palo Alto? If you're a real estate broker located in Los Alto, do you pay based on revenues generated in Palo Alto? How would the city keep track of such?

How to track such? By hiring a very expensive 'revenue tracker" with a high salary plus
benefits, a secretary and other staff expenses, that's how.

I say we tax the big businesses in Palo Alto and then tax them again. Those types have been using that whole empty "We are going to up and leave you if you don't play by our rules" threat on the local, statewide, national, and international level since time began. Call their bluff and laugh at their pathetic, frazzled reactions! The truth is they aren't going anywhere because it would cost a whole hell of a lot more to leave Palo Alto and set up a new customer base than to stay and pay their fair share for once. Besides, I'm far more concerned about the everyday needs of Palo Altans than the relative chump change and petty grudges of big businesses.

By the way, does anyone know if Palo Alto has a real estate transfer tax? If not, there ought to be because it's money, money, money! In addition, we can use it to penalize the businesses who decide to leave Palo Alto (Pfffft!).

Matt,

Yes, Palo Alto has a real estate transfer tax and they are planning to increase it a lot.

This is not just a threat of "we'll leave you". I am aware of a financial advising company who have put on hold their proposed move to Palo Alto and extended their lease in their present location. The City where they are presently located does not have a business tax.

This tax will not just affect businesses presently located in Palo Alto but will be a deterrent to any new businesses moving into PA particularly when there are neighboring cities which do not have a business tax or one which is must lower.

Yes I heard that the Apple Store, Lavender's Restaurant, Amrithika,Catherine Lush,Chelsea Art Gallery,Tercera Gallery,Stellar Somerset Gallery,Restoration Hardware,Hatami Rug Collection and a host of other businesses are packing up and moving from Palo Alto to Milpitas.

...Aaaaand this means WHAT for people running tiny (micro) home-based businesses which are the sole support of the families running them?? (Simply being able to pay the parents wages, and if they are extremely fortunate - most are NOT - the occasional non-family business employee.) These families should move out of Palo Alto too?

This seals it we really are the people’s republic of Palo Alto. Palo Alto residents better learn to say no to tax increases as in the end you can’t support an entitlement community on entitlements...

Golden goose, meet your maker.

I have urged the Palo Alto City Council and staff to model a task force or advisory group based on my experience with two similar groups that dealt with complex issues facing the city:

1) The Future of Single Family Neighborhoods Advisory Group in 2001, which developed the Individual Review Guidelines for two-story rebuilt and remodeled homes. We included a "sunset" clause in our recommendations and consequently, these Guidelines are reviewed periodically and have been quite successful.

2) The Reusable Bag Task Force, which met from April to September 2008 with representatives from Palo Alto grocery stores and drugstores, plus the California Grocery Store Association, American Chemical Council, Chamber of Commerce and private citizens. Phil Bobel, Manager Environmental Compliance Division, fairly and thoroughly facilitated the almost biweekly meetings of this diverse group as they dealt with this multifaceted issue.

Along these lines, the City Council appointed the Compost Task Force, and it, too, is handling a complicated topic.

I had hoped that the city and the Chamber of Commerce could reach an accord on the proposed Business License Tax by working together with this similar "citizen/staff model." However, there were only three meetings—clearly not enough time to reach any kind of consensus.

I believe the City Council Finance Committee should send this proposal back to staff with a strong recommendation to work with the business community to vet this issue.

The City Council has civic engagement as one of its top four priorities...here is another opportunity to do just that!

In response to the post by A Noun Ea Mus in the Professorville neighborhood:
Stellar Somerset and Chelsea Art Galleries left over a year ago.
Catherine Lush has no current plans to leave downtown Palo Alto. I (Catherine Lush) am currently collaborating with Tom Upton to develop PhotoTrainer which offers hands-on, small digital camera classes, taught by professional photographers. Later this year, we hope to start showing photography. I was initially drawn to Palo Alto because of the Palo Alto Art Walk. I thought this would be a way for me to show my bronze sculptures. There are fewer and fewer art galleries in downtown Palo Alto. The high rent expense does favor larger businesses. A business tax is certainly a concern.

What could the city do if local businesses banned together and refused to pay? I don't think there is much recourse. Maybe local businesses should ban together and sue the city if the bill passes?

Why doesn't the city just spend less so they don't have to rely on more taxation? If they get their way, the local businesses will just become a means to support big local government. What a bunch of bologna.

Mountain View has a business license tax, Sunnyvale, Menlo Park, San Francisco, San Jose, Saratoga, San Carlos, Hillsborough, Los Altos Hills, and Portola Valley, and many others. How do I know this? Because I work for a subcontractor, and we get these licenses in order to do business in these communities. The fees range from $30 (Mt. View) to $150 (San Francisco). In many cases there's no system of increased costs for subcontractors based on revenues, just a flat fee. I've wondered for years why Palo Alto doesn't have the same system.

Would you please care to view the following two videos and comment on the flat tax proposition on your blog? Your opinion is greatly appreciated.

Web Link
Web Link