The City Council of the City of Union City voted unanimously 4-0 on July 23, 2024 to place for voter consideration a ballot measure amending the Business License Tax Ordinance on the upcoming November 5, 2024 General Municipal Election.
While Union City currently maintains a healthy General Fund reserve, the City’s financial forecast projects an anticipated operating budget deficit of nearly $3 million annually beginning in 2025. Over the past several months the City Council has prudently evaluated options for a stable, locally controlled revenue source that can be used for City services.
The City’s Business License Tax was originally enacted in 1969 requiring all businesses operating in Union City to obtain a business license and to pay an associated annual tax to help support City services such as the roads, infrastructure, and other services used by local businesses. Since 1990, the City’s current business license tax structure has not been updated to reflect the evolving local economy, industries, and workforce.
The proposed Business License Tax would not be imposed on Union City residents who do not own or operate a business in Union City. The projected revenues from an update to the Business License Tax is an estimated $3.5 million annually. Any revenues from the proposed Business License Tax could be used locally for City services and infrastructure.
To learn more about the General Municipal Election, including candidates and ballot information, visit www.unioncity.org/MunicipalElection.
