Save Carmel Valley . org - Revenues linked to business fees

Click Analysis

Revenues linked to business fees

Monterey Herald – Oct. 22, 2009

Proponents of Measure G say existing taxes can only be raised through a ballot measure. This is supported on page 16 of the LAFCO fiscal analysis of Carmel Valley incorporation. However, money paid for a business licenses is a fee, not a tax.

What's the difference? A tax takes a cut of some other transaction for the purposes of raising revenue that's not connected to the activity being taxed. A fee, on the other hand, is a charge connected to the actual direct governmental cost of the activity.

Currently, Monterey County does not require businesses in the unincorporated areas to have a business license. However, all 12 cities in the county require anyone conducting business in the city to have business license, including businesses based elsewhere (e.g., a landscaper based in one city but serving clients in a different city would require business licenses from both cities). A business license fee could be introduced into the proposed city without a ballot measure. Other cities in our county charge a business license fee as a percentage of gross revenue.

Carmel Valley residents, your cost of goods and services may go up pending the cost of the business license fee not raised through a ballot measure.

Mike Terry
Carmel Valley

Last Updated: Oct 23, 09

Most Recent

Final Results Nov. 13, 2009 --Measure G Defeated by 52.52% to 47.48%

Yard Signs and/or Bumper-stickersGet Them While They’re Fresh!FREE! Call Lawrence at 831-238-5058 ...

Poll: Many Oppose C.V. Incorporation

SURVEY CARDS mailed to residents at the mouth of Carmel Valley have a resounding “no...

Irvine to be Flooded with Afforable Housing?

Erika Chavez, Staff WriterOrange County RegisterDespite lawsuits and appeals, the City of Irvine is ...

Housing Mandates in California

By Lawrence SamuelsIn 2002, the Association of Monterey Bay Area Governments (AMBAG) determined the ...