Laserfiche WebLink
File Number: 17-610 <br />but generate relatively few jobs and limited business license revenue or sales tax. By modifying <br />the business license tax rate based on square footage, the tax would better reflect such <br />businesses’ impacts on City infrastructure and services. The additional business license revenue <br />to be generated from this change in collection methodology is $450,000 annually. <br />Parking Lot Range Change: <br />Lastly, the ordinance would modify the business tax rate that is applied to parking lots (such as <br />those providing long-term parking for Oakland International Airport). Previously, parking lots paid <br />a flat fee of $128.20, plus $38.50 per parking space. The ordinance charges such businesses a <br />rate of 10% of gross receipts. In comparison, the rate in the Oakland is set at 18.5% of gross <br />receipts. The rate would enable the City of San Leandro to capture additional revenue while still <br />providing parking lot businesses in San Leandro a competitive advantage over those located in <br />Oakland. The estimated additional business license revenue to be generated from this change in <br />collection methodology is $600,000 annually. <br />In summary, staff estimates that the above modifications to the City’s business license tax which <br />align the taxes collected with the economic priorities of the City could generate more than <br />$894,000 annually, while simultaneously reducing the tax burden for approximately 1,800 small <br />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 travelers when <br />renting overnight accommodations of a limited duration in a hotel, inn, tourist home or house, <br />motel or other lodging located within San Leandro. Other communities in the region have <br />established higher rates, including the cities of Oakland and San Francisco, each of which <br />presently have TOT rates of 14%. In addition, the redevelopment of the San Leandro shoreline <br />area is expected to result in the creation of at least one new hotel in San Leandro, which could <br />provide an important source of additional TOT revenue in the future. An additional $400,000 in <br />annual revenue is anticipated, with the potential for greater increases in the future as new hotels <br />are constructed. <br />Analysis <br />Amounts of Transaction and Use Tax revenue generated by Measure HH <br />The adopted Budget approved in June 2016 anticipated $10.8 million Measure HH revenue for <br />FY 2017-18. Actual receipts were $11.3 million. The City was allocated its Measure HH sales tax <br />starting April 1, 2015 but did not budget a full year of receipts until FY 2015-16. The first receipts <br />were received in the fall of 2015. <br />Use of the tax revenue and the impact on the City operating budget including a <br />statement on the impact of the revenue in reducing the amount of cuts resulting from <br />addressing the budget shortfall <br />Measure HH revenue is available for any legal expenditure by the City. In the context of public <br />Page 4 City of San Leandro Printed on 10/30/2017 <br />117