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File Number: 19-634 <br />outlined below. These revenue sources minimize impacts on a majority of San Leandro <br />residents, as a significant portion is paid by a select number of businesses and individuals from <br />outside the city, such as hotel and airport visitors. <br />Analysis of Required Information for Annual Report <br />Ø Amounts of revenue generated by Measures <br />Measure HH <br />Transaction & Use Tax revenue totaled $12,396,300 in 2018-19. This amount exceeds the <br />budget by $900,500 and is 4% greater than total actual received in 2017-18. Transaction & Use <br />Tax revenue has increased annually since 2016-17 though the state began collecting and <br />allocating tax proceeds to the City beginning April 2015. <br />Measure OO <br />Measure OO revised the business license tax schedule levying a gross receipts provision (10%) <br />on parking lots and a square footage charge ($100 per 1,000 square feet) on warehouse and <br />distribution businesses. Business license revenue totaled $6,697,700 in 2018-19. Of this total, <br />categories including Parking Lots ($588,900), Warehouse/Storage ($238,400), and <br />Wholesale/Distribution-General ($425,400) were a total of $1,252,700. <br />Measure OO modified the tax rate applied to parking lots (primarily long-term parking for the <br />Oakland International Airport). Previously, parking operators paid a flat fee plus a per-space <br />charge. In comparison with the City’s 10% gross receipts rate, the rate in Oakland is set at <br />18.5%. The new rate formula enables San Leandro to capture additional revenue while <br />maintaining a competitive advantage over similar businesses in Oakland. <br />Additionally, Measure OO modified the tax rate applied to warehouse and distribution <br />businesses. They were previously charged a flat fee and a per-employee fee. The ordinance <br />now charges $100 per 1,000 square feet of building space. This change aligns the business <br />license fee with the impact of such businesses, primarily coming from the physical size of their <br />business rather than number of employees. Warehouse and distribution activity cause heavy <br />truck wear on local streets while creating few jobs and limited business license revenue or sales <br />tax. <br />Offsetting the tax rate increases, Measure OO eliminated the per-employee component of the <br />business license tax on small San Leandro businesses with three or fewer employees. This <br />modification results in a tax reduction for approximately 2,300 small businesses and initially <br />decreased business license tax revenue by $150,000. <br />Measure PP <br />Measure PP increased the City’s Transient Occupancy Tax (TOT) from 10% to 14%. TOT is <br />collected from travelers occupying a hotel, inn, tourist home or house, or motel for a limited <br />duration. Oakland also has a 14% rate (Alameda and Hayward currently have lower rates at 10% <br />and 8.5%). Future development at the Shoreline Area is expected to create at least one new <br />hotel providing additional TOT revenue. <br />Page 3 City of San Leandro Printed on 12/10/2019 <br />55