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Receive an Update on the Implementation of Measure BL
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Meeting Date: March 13, 2024
Contact Person/Dept: Michael Towler/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification: (E-Mail) Meetings and Agendas - Finance Advisory Committee (03/07/2024)
Department Approval: Lisa Soghor, Chief Finance Officer (3/07/2024)
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RECOMMENDATION
Staff recommends the Finance Advisory Committee (FAC) receive an update on the implementation of Measure BL.
BACKGROUND / DISCUSSION
As part of the City's 2018-2023 strategic planning goals, City Council directed staff to address the long-term financial stability of the City by reviewing existing revenue sources. As one of the top five General Fund revenue sources, business license tax was identified as one of the revenue sources to be updated. The City of Culver City had not updated business tax rates, classifications, and definitions since 1965 despite significant changes in business operations over those years. Highlights of the tax rate changes include increases in gross receipt tax rates to 0.13% ($1.30 per $1,000 in gross receipts) to 0.35% ($3.50 per $1,000 in gross receipts), as well as a gross receipts tax exemption up to $200,000 annually for all its roughly 10,000 businesses. Staff anticipated that approximately 60% of businesses would be exempt from paying the business license tax annually and would only be subject to the annual license renewal fees and other state mandated and regulatory permit fees.
City Council approved the placement of the initiative ("Measure BL") on the November 2022 ballot. The voters approved the measure by a 61% Yes / 39% No margin. At the time, Measure BL was anticipated to generate up to $10 million annually (above the Fiscal Year 2021-2022 ba...
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