Three San Leandro tax measures are under consideration for this November’s ballot. The city council on Feb.17 chose to continue research on a business licence tax, a parcel tax and a vacancy tax.
Those who own a business in the city pay a business license tax. City staff suggested they increase the license tax for businesses that make more money. This would reduce the tax for small businesses. The city can make an additional $4.3 million annually if voters pass this tax.
At least 50% of voters plus one vote is required to pass this tax. City staff said this tax has not been updated for at least 15 years. Union City approved this type of tax and Hayward is considering an update to their business tax.
The parcel tax is a tax on existing properties and is not based on property value. Considerations include taxing per parcel or square footage. The city can make an additional $5 to $7 million annually if this passes. A 66.7% voter approval rate is required to pass this tax. A 2024 poll showed that nearly 58% of voters supported the possibility of this tax.
The vacancy tax is a tax on vacant properties. City staff said the tax involves hiring three fulltime staff to enforce the tax. It requires at least 50% plus one voter approval to pass. About 61% of voters support the possibility of this tax during a 2020 poll. There are currently no estimates on how much the city can make from this tax every year, but staff said it’s on the lower end compared to other taxes that were talked about during the meeting.
