Smart Voter
Orange County, CA November 3, 1998 General
Measure G
Westminster Business License Tax
City of Westminster

13,941 / 77.2% Yes votes ...... 4,112 / 22.8% No votes

See Also: Index of all Measures

Infomation shown below: Impartial Analysis | Arguments |
Shall the City of Westminster continue to collect a Business License Tax from businesses doing business in the City of Westminster?
Impartial Analysis from City Attorney
The voter approval of the business license tax is the result of the adoption of Proposition 218, which required general taxes which go in to the general fund of the City of Westminster to be approved by a majority of those voting in a general election. This measure if adopted approves the continuing existence of a tax that has existed on businesses for many years.

Businesses have been required to pay for a business license for doing business within the City of Westminster. The license rates would remain at the same level as they currently exist.

This is a tax on businesses only and the tax rate, if affirmed, approves the tax rate established by the City Council of Westminster in 1995. The business license rate for retail business assessed against the gross income of a business. There are different rates for other types of businesses.

Generally, most cities in Orange County have such a business license for which they assess businesses within their communities.

The current economic impact to the City of Westminster's general fund from revenue from business licenses is projected to be in excess of $800,000 annually. If this measure is not adopted the funds would no longer be received and the general fund would be reduced by this amount and the city budget modified accordingly.

The above statement is an impartial analysis of Measure G. If you desire a copy of the measure, please call the City Clerk's office at (714) 898-3311 and a copy will be mailed at no cost to you.

 
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Arguments For Measure G Arguments Against Measure G
The City of Westminster like most cities in California, assess business owners an annual business license tax. This tax was changed from a flat fee of $50 per business to 0.1% (one tenth of one percent) of gross receipts in April 1995. At this time, the percentage based formula was supported by both the Westminster Chamber of Commerce and the City's independent financial review committee. Based on suggestions from the business community, the tax structure was significantly revised in August 1995 and May 1997 to be more equitable and easier to understand. The gross receipt tax is the predominant method of calculating the business license tax in other Orange County cities.

Under the flat fee provision, business as large as Sears were paying the same amount as a small local "Mom & Pop" store. A business license tax that is based on a percentage formula is fairer to businesses in the City because it is based on the size and profitability of the business and not merely a fixed fee.

The loss of the business license tax will mean a loss to the city's general fund of $800,000 annually. Business license tax revenue is used for fire and police services, street repairs, park maintenance and other general purpose activities.

This measure will ensure that the business community, as well as the residential community, support the costs of vital City services.

Arguments In Favor Submitted By

s/Frank G. Fry
s/Joy L. Neugebauer
s/Marge Shillington
s/Tony Lam
s/Margie L. Rice
No argument against this measure was submitted.

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Created: February 16, 1999 18:54
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