Measure G, if approved, would authorize utility tax revenues to be transferred to the City’s General Fund. This transfer, previously approved by voters, has been in place since 1951.  The revenues from this transfer are unrestricted and are used to support City services such as police, fire, street repairs, parks, libraries and senior services.

Voter approval of Measure G would continue the transfer of utility tax revenues and protect the funding for essential City services. Recent changes in State law now require certain fees and charges to be approved by voters.

No, Measure G will not raise tax rates.

The City has transferred a small percentage of utility tax revenues to the City’s General Fund since 1951. Originally set at 4.5%, in 1980 Santa Clara voters approved an increase to 5% which continues today.

Measure G includes strict accountability requirements including annual independent financial audits. By law, Measure G funds cannot be taken by the State or County and would remain a dedicated source of local funding for local City services.

Measure H is a measure to modernize the City’s business license tax to create a flat rate tax, per employee or rental unit on businesses and landlords, with a maximum cap and an annual adjustment tied to the consumer price index to ensure future adjustments are reasonable and predictable. Businesses that earn less than $5,000 per year would be exempt from the tax. It is anticipated that Measure H will generate approximately $6 million dollars in unrestricted funds that can be used to maintain essential City services.

Why is Measure H being placed on the ballot now?

The City’s Business License Tax was last updated in 1992. With few exceptions, the City’s current business license tax is based on the type of business and number of employees, with a maximum tax of $500 regardless of the number of employees. A six-month outreach and engagement process on how to modernize the City’s business license tax was conducted in early 2022. Community feedback indicated that the current cap has a disproportionate impact on small businesses, that the City’s tax is significantly lower than surrounding cities with the potential to generate additional revenue, and that a flat rate tax per employee or rental unit would be easier to administer for both the City and business owners. Measure H is on the ballot to address that feedback.

If approved by voters, Measure H would modernize the City’s business license tax to create a flat rate tax of $45 per employee on businesses and of $15 per rental unit on landlords with an increase in the maximum cap to $350,000. Measure H would also provide additional unrestricted, locally controlled funds to address service priorities such as maintaining 911 response times, keeping public streets and facilities healthy, safe and clean and the continued delivery of high-quality parks, recreation and library services.

If voters do not approve Measure H, the current 1992 business license tax program would remain in effect.

Measure H includes strict accountability requirements including annual independent financial audits. By law, Measure H funds cannot be taken by the State or County and would remain a dedicated source of local funding for local City services.