The San Leandro City Council is slowing down the process of placing a modernized business license tax measure on the ballot. They voted to work on placing the measure on the November 2028 ballot.
One resident said this year is the right time to place the measure on the ballot. “What a shocker. Businesses don’t want to pay taxes. Where have I heard that one before?” he said. “This tax is modern, it’s fair, it’s indexed to inflation by default, because it’s based on gross receipts, if businesses raise prices, great, the city gets more money. Also, I’m cognizant of the need to respect the concerns of the business community.”
Those concerns include having to pay more every year while dealing with the costs of running a business. Emily Griego from the San Leandro Chamber of Commerce said she wants the council to slow down the process of the proposed business tax. “This is not a modest adjustment,” she said. “For many businesses, it is still a major, new expense that could affect decisions around hiring, expansion, investment and long-term sustainability.”
The tax is an annual fee that businesses have to pay to continue running their business in San Leandro. The proposed business license tax includes an increase in most industries. A grocery store that has 60 employees would have a yearly tax of $4,300. A small retail store employing five people would pay $645, and a restaurant employing 25 people would pay $817. A large manufacturing business employing 90 people would pay $12,900 a year.
Councilmember Xouhoa Bowen said she talked to businesses, and they said they are not comfortable with the proposed business license tax rates. “We would be speculating if we talked about how the businesses respond, but I know as a person that has bills to pay and things that I have to afford, when big changes happen, it makes it really hard, and I just want to recognize where we’re at.”
Councilmember Dylan Boldt said he doesn’t agree with pushing the proposed ballot measure back to 2028. “Government moves so slow, and this would be us slowing it down,” he said. “I get the business community’s effort in this to slow-walk this process. Obviously, that’s the right move if you own a business. Keep as much in your pocket as you can. But I don’t think it’s appropriate.”
He continued, “Everybody I talk to says, we need better streets. We need better policing, we need a cleaner this, that, but nobody wants to pay for it. Right now we have the opportunity to get there.”
