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Business License Tax Increases By 2 Percent

Recently approved business license tax sees its first increase and the final reading is at tonight's city council meeting.

The Campbell Business License Tax, which sees its first two percent increase and will add $11,000 to the General Fund in the next fiscal year.

The Campbell City Council will have the final reading of the approved two percent increase at tonight's Campbell City Council meeting, 7:30 p.m. in Council Chambers.

"To increase the tax by two percent, that was something built into the ballot voters approved," said Campbell Finance Director Jesse Takahashi. "We didn’t want it to be automatic. If anyone in the public that had some issues, they could address it by having it go to council."

The first reading was held April 17 and the only required public hearing for the tax increase was held May 15. It will be on tonight's consent calendar so residents interested in commenting can ask for it to be removed from the consent calendar for discussion.

After tonight's meeting, the tax increase will be effective starting July 5.

Along with the tax increase, council amended the ordinance to comply with California AB 619, which went into effect in January.

"The state made the change that limited the amount we could charge for these folks (massage-type businesses) so we are now basically charging them the same we charge for professionals," Takahashi said.

*Examples of business type and the license increase are shown below:

Business Classification Current Fee Proposed Fee w/Increase Out of Town $90 $91 Industrial between $110 and $300 (depending on No. of employees) $112-$306 Commercial between $110 and $500 (depending on No. of employees) $112-$510 Massage Establishment $200 between $112 and $204 (depending on No. of employees) Occult Sciences $300 $306 Professional between $110 and $500 (depending on No. of employees) $112-$510 Theaters $400 $408 Taxicabs-Limousines $110 $112

*Information gathered from May 15 city council report.

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