Measure U Gross Receipts Business Tax

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FAQ

Revenue Ballot Measure


City Council placed a measure on the November 3, 2020, ballot that was approved by the voters, which changes the Business 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 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 charge 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 tax in most cases was based on the number of employees. The base rate was $234.10 per year and increases per 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.

Implementation Date


Council approved a change to the implementation date from July 1, 2021, to January 1, 2022, in accordance with Section 7.04.680(B). The staff has met on several occasions with a coalition of Richmond businesses and presented at both Richmond Neighborhood Coordinating Council (RNCC) and Economic Development Commission (EDC).

In meeting with the business coalition that included representatives from West Contra Costa County Council of Business and Industry and Richmond Chamber of Commerce, staff has gathered a listing of concerns and uncertainties around definitions of certain terms, and clarification around the implementation of the ordinance. Please reference the Frequently Asked Questions (FAQ) section for more information.

To make sure you are notified of additional updates, please subscribe to the Measure U Implementation Updates Sign-up!

Business Outreach

Outreach Type
Who
Date
Business Data Sheet (to estimate gross receipts)
All Businesses - Over 9,000 sent
October 2021
Renewal Notices All businesses with expired licenses since 1/31/2022 - 1,900 sent
January 21, 2022
Measure U - Update postcard
All businesses with active licenses and expired licenses since July 2018 - 4,044
January 26, 2022
Social Media/Direct Outreach
Social media campaign notifying the public of new resources available
March 28, 2022
Measure U - Renewal Notices
All expired Businesses received a physical renewal notice and letter
April 1, 2022

Contact Us

General Inquiries:

Email: measure_u_info@ci.richmond.ca.us

Phone: (510) 620-5555

Stay Informed:

Sign up for our email listserv for up to date information about Measure U and Measure U Implementation.

Schedule a Meeting:

Sign up for time slot to discuss Measure U implementation and you business on Calendly.

Hours of Operation:

  • Monday - Friday
  • 8:45am - 4:00pm

Physical Address:

  • Finance Department
  • 450 Civic Center Plaza
  • Richmond, CA 94804

 

 

Measure U - One-on-One Meeting with Finance Staff

Have questions about Measure U implementation or your business's new assessed tax rate? Schedule a fifteen (15) minute one-on-one meeting with Finance Staff members to answer your questions. Follow this Calendly Link to reserve a time; 

Virtual - Tuesday and Thursday from 9 am-Noon [link provided with registration]

In-Person - Walk-up Wednesday from 9 am-Noon

Additional Resources:

Updates to Measure U

During the December 21, 2021 Richmond City Council Meeting, City staff introduced an ordinance that would allow landlords with four or less residential units to credit their paid Rent Board fees against their gross receipt tax obligation. 

  1. Resolution No. 138-21 - Authorizing the business license division of the finance department to offer an amnesty program for the Business License Tax
  2. Resolution No. 159-21 - Authorizing A credit of the full amount of fees paid to the Rent Board towards their business Tax for owners of four units or less in the City of Richmond
  3. Staff Report 
  4. Richmond City Council Presentation


Administrative Rulings

Pursuant to Section 7.04.670 of the City of Richmond Gross Receipts Business Tax Measure U, the Director of Finance, upon delegation from the City Manager, may adopt Administrative Rulings to clarify certain sections of the Measure U Gross Receipts Tax Ordinance approved by the Richmond voters in November 2020.

  1. Administrative Ruling #1
    1. If a business operator has earned gross receipts in Richmond but provides services outside of Richmond as well, the tax will be calculated based on gross receipts from sales in Richmond.
    2. Businesses categorized as Wholesale Sales will fall under the Business Activity Classification of Class A – Retail Sales.
    3. Any business that is not otherwise defined nor included in the various classifications will fall under Business Activity Classification of Class J – Miscellaneous.
  1. Resolution and Ordinance
  2. Community Meeting - Videos
  3. Measure U - Presentations

Contact Us

  • General Inquiries:
  • Hours of Operation:
    • 8:45am - 4:00pm
    • Monday - Friday
  • Physical Address:
    • Finance Department
    • 450 Civic Center Plaza
    • Richmond, CA 94804


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Stay Informed!

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