REPORT TO COUNCIL
SUBJECT
Title
Action to Adopt a Resolution to Provide Santa Clara Small Businesses Reporting 49 or Fewer Employees a One-Time Subsidy to Help Offset Costs of Modernized Business License Taxes Using Existing Silicon Valley Chamber of Commerce Settlement Funds Up to $330,000
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
Enhance Community Engagement and Transparency
BACKGROUND
On September 7, 2021, the City Council approved the appropriation of funds from the Silicon Valley Chamber of Commerce (Attachment 1). These funds were received as part of a settlement agreement reached between the City and the Silicon Valley Central Chamber of Commerce ("SVCCC") in June 2021. As part of the settlement the City received funds in the amount of $330,000 for outreach and assistance to small businesses in Santa Clara.
On July 12, 2022, the City Council took formal action to submit to Santa Clara voters a Business License Tax Modernization Measure as part of the November 2022 General Election. During that discussion, staff included details of several components of the business tax intended to ensure equity and the protection of small businesses including a one-time subsidy for businesses for Santa Clara companies reporting 49 or fewer employees (Attachment 2).
On November 8, 2022, nearly 60% of Santa Clara Voters approved Measure H to update the City's Business License Tax program. The new rates will go into effect on July 1, 2023 and affect nearly 6,100 businesses in Santa Clara. Information about the revised program can be found on at https://www.santaclaraca.gov/our-city/departments-a-f/finance/business-license-tax-2023-update.
DISCUSSION
During the outreach process related to the proposed measure, a core value that was identified by stakeholders and the City Council was the importance of mitigating the impact on small businesses in Santa Clara.
With that in mind, staff began to explore various options on...
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