3,061 / 69.7% Yes votes ...... 1,330 / 30.3% No votes

See Also: Index of all Measures

Meaning of Voting Yes/No

A YES vote of this measure means:

A majority of "yes" votes will allow the existing Business Registration Tax to remain in effect.

A NO vote of this measure means:

A majority of "no" votes will repeal the existing Business Registration Tax.

The Ordinance established an annual date for the tax, and allowed for an automatic 4% increase per year.

At the time the City Council adopted the Ordinance in 1992, California court decisions allowed the tax to be imposed without a vote of the electorate. Subsequently, those decisions have been reversed and it is now a requirement for every tax to be approved by the voters. As a result, the City Council has now placed the Business Registration Tax on the ballot for voter approval in the form of Measure K (the Measure).

The Business Registration Tax proposed by this Measure is a general tax and as a result requires a majority vote, meaning more than 50 percent of the voters voting for approval. If enacted, this Measure can only be modified by a subsequent measure submitted to and approved by the voters.

In summary, this Measure would enable the present Business Registration Tax Ordinance, that has been operable for the past nine years, to remain in effect.

Ballot Measure "K" Information Page

Ballot K section of the City of San Carlos Election Web Site.

More recent court decisions have reversed those earlier decisions and voter approval of local taxes now is required. Further, taxes adopted during the 1990-2001 period now need to go before the voters. This puts the City in the unusual position of seeking voter approval of the Business Registration Tax that was adopted, with the support of the business community, over nine years ago.

Measure K maintains the same tax structure that has been in place for the past nine years. It continues to be part of a balanced package to spread the financing of important community services and improvements between the business and residential sectors of San Carlos.

In evaluating this tax you should know that:

• There is no change to the current tax. Approval will not cost San Carlos businesses any more money and it will not generate additional revenue for the City.

• Should Measure K fail the City will lose approximately $160,000 per year in General Fund revenue. The General Fund is the source of money for the Police, Fire, and Parks & Recreation departments, among others.

Vote Yes on Measure K.

/S/ Neil Chichizola
Chair of the Board, San Carlos Chamber of Commerce

/S/ Cheryl Hochstatter
Chair-Elect, San Carlos Chamber of Commerce

/S/ Vic Balushian
Treasurer and Past-Chair, San Carlos Chamber of Commerce

/S/ Don Eaton
Vice Mayor, City of San Carlos

IT IS ORDAINED by the City Council of the City of San Carlos as follows:

Section 1: Chapter 5.04 of the San Carlos Municipal Code is amended by adding the following sections:

a. "Section 5.04.090 - Annual Increase and Maximum Fee

A. All business registration taxes hereinafter referred to as business registration fees and charges, including base and unit charges and minimum and maximum charges in this chapter shall be increased annually by four percent commencing January 1, 2003.

B. Notwithstanding the other provisions of this chapter, the minimum annual fee for a business in the City shall be One Hundred Eight dollars.

C. In no event shall a business pay a fee in excess of One Thousand Three Hundred Seventy Three dollars for a business registration certificate during the first year that this chapter is in effect.

b. Section 5.04.120 - Registration Categories and Amount of Fees

Business registration certificates shall be issued based on the following rate categories and amounts of business registration taxes hereinafter referred to as business registration fees:

A. Group I - Manufacturing, Wholesale and Retail. All businesses in the manufacturing, wholesale and retail categories shall pay an annual business registration fee of Fifty Seven dollars base fee plus Sixteen dollars per employee or space. In no event will this annual fee be less than the minimum annual fee. Businesses not covered by other business registration rate categories will also be assessed according to this rate schedule. Businesses in this group include:

Antique and consignment dealers
Bakeries
Bookstores
Candy stores
Car dealers
Clothes stores
Computer stores
Department stores
Distributors
Donut shops
Drug stores
Flower shops
Furniture stores
Gardening supplies
Gas station and car wash
Grocery stores
Hardware, cabinet and paint stores
Jewelers
Liquor stores
Manufacturing
Manufacturer's representative
Printing, copying and publishing
Restaurants and delis
Retail merchants
Shoe stores
Sporting goods
Stationery and office supplies
Wholesalers
Other similar businesses not specified
Other businesses not specified in this chapter.

B. Group II - Services, Contractors, Property Rental, Entertainment and Utilities. All businesses in the services, contractors, property rental, entertainment and utilities categories shall pay an annual business registration fee of Fifty Seven dollars base fee plus Twenty Two dollars per employee. In no event will the annual fee be less than the minimum annual fee. Businesses in this group include:

Agents with no fixed location
Aircraft leasing
Athletic clubs and gyms
Auto repair, paint and body shops
Beauty, nail and hair salons
Child care (seven or more)
Computer services and programming
Contractors
Delivery services (based in San Carlos)
Dry cleaners and laundry
Gardening services
Hotels and motels
Locksmiths and security
Mailing services
Photography
Property management
Property repair
Real estate offices and agents
Rental (car and equipment)
Repair
Schools and instruction (for profit)
Services
Tailors
Travel agents
Tree services
Other similar businesses not specified.

C. Group III - Professions. All businesses in the professions category shall pay an annual business registration fee of Fifty Seven dollars base fee plus Twenty Nine dollars per employee. In no event will the annual base fee be less than the minimum annual fee. Businesses in this group include:

Accountants
Advertising
Appraisers
Architects and landscape architects
Artists
Attorneys-at-law
Bookkeeping services
Business and Professions Code
Chiropractors
Consultants
Dentists
Doctors
Engineers
Geologists
Health care services and labs
Medical practitioners
Psychologists
Surveyors
Tax counselors
Other similar businesses not specified.

D. Group IV - Amusement Devices. The operator of any amusement device defined by subsection A of Section 9.05.010 of this Code, shall pay the sum of One Hundred Forty Two dollars per machine per year for the first two machines, and for any machine in excess of two, shall pay the sum of Two Hundred Fourteen dollars per machine per year, for the privilege of operating such machines.

E. Group V - Billiard Rooms, Poolrooms. The operator engaged in the operation of a billiard room or poolroom shall pay a registration fee of One Hundred Eight dollars for the first pool table or billiard table and Twenty Nine dollars for each additional table.

F. Group VI - Amusement Places, Bingo, Theaters or Exhibition Halls. The operator, firm or corporation engaged in the carrying on of an amusement place, bingo, theater or exhibition place, excepting circuses, carnivals and outdoor shows, have a seating capacity of less than five hundred persons, shall pay a registration fee in the sum of One Hundred Forty One dollars per year. All operators, firms or corporations engaged in a like business, having a seating capacity of more than five hundred persons shall pay an additional fee of One dollar per seat over five hundred.

G. Group VII - Apartment Houses.

1. Every person or entity engaged in the business of conducting, managing or operating an apartment house consisting of a building or buildings in the same ownership, constructed upon one parcel or upon adjoining parcels of land and comprised of three or more units per building shall pay an annual registration fee computed as follows:

a. Zero to and including two units, no charge;

b. Three units and over, a base fee of Fifty Seven dollars plus Sixteen dollars per unit after the first two units.

2. In computing the unit count, a unit occupied by the owner himself or herself personally shall be excluded from the registration fee due.

3. In no event shall the annual fee be less than the minimum annual fee.

H. Group VIII - Contractors (Out of town). Contractors who are headquartered outside of San Carlos shall pay a flat fee of One Hundred Eight dollars for an annual registration certificate. Contractors who are headquartered outside of San Carlos and wish to purchase a limited term registration certificate can obtain a six month registration for Sixty Three dollars.

I. Group IX - Seasonal and Specialized. All businesses in the seasonal and specialized category shall pay an annual registration fee of Four Hundred Seventy dollars per year. Businesses in this group include:

Adult entertainment
Auctions
Auto wrecking
Carnival, circus, rodeo, outdoor shows
Christmas trees and pumpkin patches
Cocktail lounges
Massage parlors
Parking lots
Public dancehalls
Street vendors and solicitors
Temporary vendors and businesses."

SECTION 2: Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of San Carlos hereby declares that it would have adopted this Ordinance and such section, subsection, sentence, clause, phrase or portion may be declared invalid or unconstitutional.

SECTION 3: Duration, Amendment or Repeal. The authorization to levy a tax under this Ordinance shall commence beginning December 1, 2001. This Ordinance or any provision thereof may only be amended or repealed by approval of a majority of the voters voting on the proposition at any initiative or referendum election.

SECTION 4: Authority to Adopt, Measure/Effective Date.

(a) This Ordinance and the tax authorized herein is adopted pursuant to the provisions of California Government Code Sections 53720, et seq., and the California Constitution Article XII C, Section 2(b).

(b) This Ordinance shall be effective only if approved as a general tax by a majority of the voters voting at a consolidation election to be held on Tuesday, November 6, 2001, and go into effect December 1, 2001 after the City Council has, by resolution, declared that such measure was approved by the voters.