Measure U

Revenue Ballot Measure
City Council placed a measure on the November 3, 2020 ballot that was approved by the voters, which changes the Business License Tax calculation methodology to be based on gross receipts in the City of Richmond instead of the number of employees. The new model would calculate the business license tax based on the amount of gross receipts (total amount of money received in connection with any sale) in Richmond by the business and then charging a specific percentage based on the type of business and the amount of revenue generated. The tax to businesses is based on a range from 0.075% to 1.395% of gross receipts.

Previously, the business license tax in most cases was based on the number of employees. The base rate was $234.10 per year and increases per each employee a business has working in Richmond (the first 25 employees are charged at $46.80 per employee, and employees above 25 are charged at a rate of $40.10 per employee). The cannabis industry (at 5%) and movie theaters (at 0.3% for revenues over $20,000) are currently based on gross receipts.

Measure U Implementation Request for Proposals
On Friday, May 7, 2021, the City opened the bidding process for the selection of a firm to perform analysis and provide implementation consulting for Measure U. Responses to the RFP are due (4) weeks later on Friday, June 4, 2021. Potential respondents to the Request For Proposals (RFP) are invited to visit the City's website to review the bid documents at www.ci.richmond.ca.us/bids.

Agenda Report

Attachment 1 - Resolution - UPDATED
Attachment 2 - Ordinance - UPDATED
Special Meeting Presentation ~ August 5, 2020
Community Meeting
Council Meeting