Pass: 2,951 / 78.40% Yes votes ...... 813 / 21.60% No votes

See Also: Index of all Measures

Impartial Analysis from KEVIN G. ENNIS, City Attorney

Measure M will approve the "Artesia Local Services Ordinance" which is an update to the City of Artesia's existing business license tax ordinance ("BLT Ordinance"). It will increase the business license tax that is paid to the City for some service, retail, wholesale, professional, contracting and manufacturing businesses. Additionally, this Measure will remove obsolete business categories, add new categories, and establish a first-time application investigation and inspection fee. All small businesses (those having gross annual receipts of less than $150,000) will be exempt from any tax increase or payment of the investigation or inspection fee, except a few that are subject to the payment of a flat fee regardless of their financial size.

Service, retail, wholesale, professional and local contracting businesses currently pay a business license tax based on their annual gross receipts. This Measure will increase the tax rate for such businesses having annual gross receipts of $150,000 or more. For example, a service business having annual gross receipts between $200,000 and $249,000 will pay $350 in business license tax, which is $110 more than is paid under the existing BLT Ordinance.

Manufacturing businesses currently pay a business license tax based on their number of employees. If this Measure is approved, those businesses will pay the tax based on their gross annual receipts, truck trips, or building floor area, whichever factor produces the greater tax amount. Small manufacturing businesses having less than 10 employees and less than $150,000 in gross annual receipts will not pay an increased tax. Certain types of businesses and occupations pay a "flat rate" tax. The tax amount for some of those businesses will increase.

This Measure will also: (1) require an independent annual audit of the City's use of the tax revenues; (2) establish a five-member City Council appointed Citizens Oversight Committee to review the City's use of the tax revenue; (3) authorize the City Council to reduce the tax rates; and (4) allow the City Council to increase the tax rates based on Consumer Price Index ("CPI") changes in the future. This Measure will not permit the City Council to raise the tax rates beyond a CPI change without additional voter approval.

Revenue generated by the business license tax will continue to be deposited into the City's General Fund, which means that revenue may be used for general City governmental purposes, such as police, gang prevention, street repairs and other services. If this Measure is adopted, the tax increase will take effect January 1, 2013, and is estimated to raise approximately $300,000 in additional business license tax revenue per fiscal year.

A "Yes" vote on Measure M is a vote to approve the Artesia Local Services Ordinance and increase business license taxes on some businesses. A "No" vote on Measure M is a vote to maintain the BLT Ordinance as it now exists. This Measure will be adopted if it is approved by a majority of the voters voting on this Measure.

City of Artesia