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<br />Parking Lot Range Change: <br />Lastly, the ordinance would modify the business tax rate that is applied to parking <br />lots (such as those providing long-term parking for Oakland International Airport). <br />Previously, parking lots paid a flat fee of $128.20, plus $38.50 per parking space. <br />The ordinance charges such businesses a rate of 10% of gross receipts. In <br />comparison, the rate in the Oakland is set at 18.5% of gross receipts. The rate would <br />enable the City of San Leandro to capture additional revenue while still providing <br />parking lot businesses in San Leandro a competitive advantage over those located <br />in Oakland. The estimated additional business license revenue to be generated <br />from this change in collection methodology is $600,000 annually. <br />In summary, staff estimates that the above modifications to the City’s business <br />license tax which align the taxes collected with the economic priorities of the City <br />could generate more than $894,000 annually, while simultaneously reducing the <br />tax burden for approximately 1,800 small businesses located in San Leandro. <br />Overview of Increase in Transient Occupancy Tax - $217,000 received through <br />June 30, 2017 <br />The City’s previous transient occupancy tax (TOT) was 10%, which is charged to <br />travelers when renting overnight accommodations of a limited duration in a hotel, <br />inn, tourist home or house, motel or other lodging located within San Leandro. <br />Other communities in the region have established higher rates, including the cities <br />of Oakland and San Francisco, each of which presently have TOT rates of 14%. <br />In addition, the redevelopment of the San Leandro shoreline area is expected to <br />result in the creation of at least one new hotel in San Leandro, which could provide <br />an important source of additional TOT revenue in the future. An additional <br />$400,000 in annual revenue is anticipated, with the potential for greater increases <br />in the future as new hotels are constructed. <br />Analysis <br /> <br />Amounts of Transaction and Use Tax revenue generated by Measure HH <br /> <br />The adopted Budget approved in June 2016 anticipated $10.8 million Measure <br />HH revenue for FY 2017-18. Actual receipts were $11.3 million. The City was <br />allocated its Measure HH sales tax starting April 1, 2015 but did not budget a <br />full year of receipts until FY 2015-16. The first receipts were received in the fall <br />of 2015. <br /> <br /> <br /> <br /> <br /> <br /> <br />131