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Tax cut for small businesses proposed for November ballot

Adam Jensen
ajensen@tahoedailytribune.com

SOUTH LAKE TAHOE, Calif. – Whether big businesses should have the cost of their business licenses go up and small businesses should have the cost of their business licenses go down could be up to voters in November.

At their regular meeting on Tuesday, the South Lake Tahoe City Council will discuss putting a revision to the city’s business license tax rate on the Nov. 2 ballot.

In April, the City Council asked staff to look at the fiscal impacts of reducing the tax by 5 or 10 percent per $1,000 in gross revenue, but increasing the maximum amount of the tax from $3,387 to $10,000.



A 10 percent reduction combined with a $10,000 cap would generate about $100,000 in revenue per year for the city, according to a June 8 staff report from City Attorney Patrick Enright and Director of Finance Christine Vuletich.

A five percent reduction combined with a $10,000 cap would generate about $150,000 a year for the city, according to the staff report.



About 50 businesses in town would see a tax increase under the if either of the proposals is approved by voters, while about 3,400 would see their business license fees drop, according to the staff report.

The rates, as well as the cap, would be increased annually based on the consumer price index, which measures the changes in cost to consumer goods and services.

Voters are required to decided on the rate change because it includes a tax increase on some business owners, according to the staff report.

If placed on the November ballot by the City Council, the measure would need approval from the majority of voters to pass.

Putting the proposal on the ballot would cost the city between $12,000 and $17,000, according to City Clerk Susan Alessi.

The South Lake Tahoe City Council meets starting at 9 a.m. at Lake Tahoe Airport at 1901 Airport Road.

To view the meeting’s full agenda, visit: http://www.cityofslt.us/citycouncil/streaming.html


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