Berkeley, California, Business License Tax Increase, Measure DD (November 2016)
| Measure DD: Berkeley Business License Tax Increase |
|---|
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| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
 Defeated
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| Topic: |
| Local business tax Expires in: Never |
| Related articles |
| Local business tax on the ballot November 8, 2016 ballot measures in California Alameda County, California ballot measures City tax on the ballot |
| See also |
| Berkeley, California |
A business license tax increase was on the ballot for Berkeley voters in Alameda County, California, on November 8, 2016. It was defeated.
| A yes vote was a vote in favor of increasing tax of gross receipts for owners of three or more residential rental units from 1.081 percent to 1.5 percent, thereby competing with Measure U1. |
| A no vote was a vote against increasing tax of gross receipts for owners of three or more residential rental units from 1.081 percent to 1.5 percent. |
Election results
| Measure DD | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| No | 39,874 | 70.95% | ||
| Yes | 16,328 | 29.05% | ||
- Election results from Alameda County Registrar of Voters
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ | Shall an ordinance permanently increasing the gross receipts tax on owners of three or more residential rental units from 1.081% to 1.5%, prohibiting landlords from passing the tax on to sitting tenants except as allowed by law, and authorizing the Council to create a citizen panel to make recommendations on increasing affordable housing and protecting residents from homelessness be adopted?
Financial Implications: This amendment is estimated to raise approximately $1,400,000 annually, increasing with rents. [2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Berkeley City Attorney:
| “ |
This measure was placed on the ballot by an initiative petition that was signed by registered voters equal in number to 5% of the number of votes cast in the City of Berkeley for Governor in the last gubernatorial election. This measure amends the City’s business license tax ordinance (Berkeley Municipal Code Chapter 9.04) to permanently increase the gross receipts tax on owners of five or more residential rental units from 1.081% to 1.5%. Tax proceeds would be placed in the City’s general fund and could be used for any governmental purpose. The measure would authorize the City Council to adopt criteria for hardship exemptions. The measure would prohibit landlords from passing the tax on to sitting tenants except as permitted by law. The measure would authorize the creation of create a new “Citizens Advisory and Oversight Panel on Safe Affordable Housing and Homelessness Prevention” to make non-binding recommendations to the City Council on to what extent the City should establish and fund programs to increase the supply of affordable housing and protect residents from homelessness. The Panel would be required to publish an annual report that includes recommendations to the City Council on how to allocate the City’s general funds to increase its stock of permanently affordable housing and prevent and reduce homelessness, as well as any additional information the Panel deems appropriate. This report would be published on the City’s website within 15 days and would be transmitted to the City Council, which would have to consider it, but need not adopt its recommendations. The measure provides that in the event any other measure relating to taxation of income from rental units passes, the measures shall be deemed to be in conflict, and the measure with the most votes will prevail over the other measure. Financial Implications The tax increase is expected to raise approximately $1,400,000 annually, increasing with rents. Costs of administering and collecting the tax are estimated to be approximately $175,000 annually. Expenses related to the new Panel, if established, would be approximately $150,000 in the first year and $75,000 - $90,000 annually thereafter. [2] |
” |
| —Berkeley City Attorney[3] | ||
Full text
The full text of the measure is available here.
Support
Supporters
The following individuals signed the official argument in favor of the measure:[3]
- Nathan R. Wollman, Tenant & Lead Initiative Proponent
- Judith M. Shaw, Homeowner
- Claire Pirie, Tenant
- Kathryn Snowden, Homeowner
- Jon A. Vicars, Rental Property Owner
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[3]
| “ |
Vote YES on Measure DD to support creation and preservation of affordable housing in Berkeley. Earlier this year, more than 3,300 Berkeley voters signed petitions to get Measure DD on the ballot. By signing, they were saying two things. First, that housing affordability needs to be a top priority of our city. Secondly, they were saying, it is only fair to ask owners of residential rental units to contribute a little more by accepting an across-the-board increase in the tax they pay on rent they collect from tenants. Today, owners of three or more residential rental units in Berkeley pay a business license tax equal to 1.081 percent of their annual gross receipts from rents. Measure DD increases this tax by about 40 percent from 1.081 percent to 1.5 percent of gross receipts. The higher tax rate under Measure DD will mean an additional $1.4 million will be available to the Berkeley City Council in the first year alone to support affordable housing. And revenue will grow as rent payments increase year after year. Measure DD contains an assurance that the extra revenue goes to its intended purposes. It directs the City Council to establish a Citizen Advisory Panel to make budget recommendations on increasing affordable housing spending. Lastly, and importantly, Measure DD is the only one of the two residential rental unit taxes on our November ballot that doesn’t play favorites by exempting big developers and owners of new apartment complexes. We don’t claim Measure DD is the only answer to the housing affordability challenge facing our city and region. We do believe it is the fairest and most reasonable approach available to our city at this time. We hope you agree. VOTE YES on Measure DD. [2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[3]
- Jesse Arreguin, Berkeley City Councilmember
- Kriss Worthington, Berkeley City Councilmember
- Maxwell G. Anderson Jr., Berkeley City Councilmember
- Matthew Lewis, ASUC Housing Commission Chair on behalf of the Associated Students of the University of California
- Igor Tregub, President, East Bay Young Democrats
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[3]
| “ |
SAY NO TO BIG LANDLORD MEASURE DD Berkeley’s largest landlords spent more than $65,000 to hire teams of out-of-town signature gatherers to put this misleading measure on the ballot. If this measure gets more votes than Measure U1, larger landlords will save millions every year in lower taxes, while affordable housing and homeless services will lose out by the same amount. Rents are through the roof in Berkeley. This year landlords will collect $82 million more in rent than they did five years ago. They can afford to pay up to an additional $3½ million a year that the City can use to fund affordable housing and homelessness prevention. That’s only $30 per unit per month, far less than the last rent increase. That’s why:
Measure DD will raise less than half as much as Measure U1 and also taxes the small landlords with fewer than five units so the big guys can pay less. Don’t be fooled. Measure DD is bankrolled by big landlords to get themselves off the hook. Measure U1 is the real affordable housing measure, supported by affordable housing organizations because it brings in more than double the revenue for affordable housing and homelessness prevention, paid for by the landlords. Don’t be fooled by their heavily-funded and misleading campaign. Vote NO on DD and YES on U1, the real affordable housing measure. [2] |
” |
Path to the ballot
This measure was put on the ballot through a successful initiative petition campaign.
Recent news
The link below is to the most recent stories in a Google news search for the terms Berkeley Local business tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ Alameda County, "November 8, 2016 General Election Local Measures," accessed October 12, 2016
- ↑ 2.0 2.1 2.2 2.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 3.0 3.1 3.2 3.3 3.4 Alameda County, "Measure DD," accessed October 30, 2016
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