Home Antioch Antioch City Council Set to Tackle Residential Rental Business License Tax

Antioch City Council Set to Tackle Residential Rental Business License Tax

by ECT

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Tuesday night, the Antioch City Council will receive a report on a proposed residential rental business license tax that would tax landlords.

The measure was first brought forward last May by “The Friday Morning Breakfast Club” where the council at that time decided to move forward with only a sales tax measure and killed the residential rental business license tax—Measure C will bring in an estimated $4 million to the City of Antioch for seven years to the General Fund.

According to City Manager Steve Duran, he explained in an email the citizen’s petition is a general tax, so the City could spend it as it sees fit. The tax would only need a 50% plus one vote to pass.

The residential rental business license tax is expected to help bridge the city’s funding gap where by 2016-17, they are projecting a $3 million structural deficit explained Duran.

According to the Staff Report, the citizens initiative is currently circulating for signatures that would implement a $240 per unit annual Business License Tax on residential landlords (or $20 per month). If enough signatures are collected and verified, the City Council would then decide whether or not to order a report or place it on the ballot at a future election date to be determined by the council.

In May of 2013, the Council discussed the idea of a Council Ballot Measure for $240 business license tax on residential landlords. This would have imposed the following “tax” based on a formula which included:

  • $ 240 per unit per year for 1 to 25 units
  • $ 120 per unit per year for 26 to 50 units
  • $ 75 per unit per year for 51 to 150 units
  • $ 50 per unit per year for over 150 units
  • Or develop a business license tax based on gross receipts to residential landlords.

The California Apartment Association (CAA) is strongly opposed to any unit based tax, regardless of the amount and will likely fight any measure.

With the Friday Morning Breakfast Club, Antioch Chamber of Commerce and California Apartment Association unable to agree to terms, staff is asking the City Council to decide a common ground and determine “fairness”.

According to the Staff Report, the minimum Business License Tax in Antioch has been in place since 1947 with businesses paying pursuant to the gross receipts formula at $25. In Brentwood, the minimum tax $100, in Oakley its $100 and Pittsburg is $30. Staff is recommending raising the minimum for any business to at least $100—the Antioch Chamber of Commerce is opposed to any increase in the minimum Business License Tax for non-residential rental business.

Staff is recommending the following basic terms be presented to “The Friday Morning Breakfast Club”, the California Apartment Association and the Antioch Chamber of Commerce:

  • Establish that the rental or leasing of real property is a business subject to the City’s Business License Tax
  • Raise the minimum Business License Tax to $100 a year for all business subject ot the gross receipts formula other than the rental or leasing of residential real property
  • Establish a minimum Business License Tax on mthe rental or leasing of detached single family dwelling units at $250 per dwelling unit per year
  • Establish a minimum Business License Tax on the rental or leasing of attached multi-family dwelling units at $150 per dwelling unit, including condominiums, cooperatives and apartments.

Should the City Council move forward, here is the timeline:

  • May 27 – Approve the basic terms of the ballot measure and direct the City Attorney to prepare the ordinance and update the Business License Tax provisions in the Municipal Code.
  • June 10, 2014 – Approve the first reading of the ordinance for the November ballot.
  • June 24, 2014 – Approve the second reading of the ordinance for the November ballot and adopt the resolution placing it on the ballot.

For the full Staff Report on this item, visit the City of Antioch website.

If you go:
Antioch City Council Meeting
Tuesday, May 13, 2014 @ 7:30pm – Agenda Item 7
200 H Street, Antioch

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11 comments

Doug's Had Enough May 12, 2014 - 9:48 am

Our former mayor is the smartest man in Antioch. He got unelected and is still getting the city to do as he wishes. Brilliant! Unfortunately, I do not support this. I am sick of taxes in Antioch and they keep punishing business. Enough is enough, replace anyone up for re-election in November.

Tim Thomas May 12, 2014 - 9:52 am

So the City has run the budget into the ground and now they want a bailout by punishing business? I say we punish the council by voting them out or recalling them. We need residents who will actually work to bring business in, work on real issues, make real cuts and have a real plan. This taxing business only makes things worse.

EastCountyToday May 12, 2014 - 9:53 am

Keep in mind this is only a proposal. The Council has not yet decided on anything.

Martin Fernandez May 12, 2014 - 10:25 am

This does not punish anyone. It levels the playing field. A company called Way Point owns over 350 rental houses in Antioch. Each rental is owned by a former 49er player. It is a business and should pay. Rentals including apartments use the infrastructure of Antioch at virtually very little cost. The average STORE or Mom and Pop place is not being punished by this. It is for rental properties, no small businesses or your house or my house.

DOUG HAS HAD ENOUGH, The 30 people who have worked on this for a couple of years went to Mr. Freitas and ASKED him to represent us. With that he became a part of it. Make no mistake, he was asked to join us and he will tell you the same thing if you asked him.

Up for election is Gary Agopian who should be reelected. The other position is Tony Tiscarino. In my opinion and only mine he isn’t the quality of person I want on council. Go back and watch what he does etc and you will see what I mean.

Bobby Lott May 12, 2014 - 12:05 pm

The Antioch City Council are a bunch of boneheads. You really think the landlords are going to pay this $240 per year? Nope, they will not pay a dime; it will be passed onto renters and hurt the Antioch economy. I hope Antioch gets itself sued by this for discrimination on certain businesses.

Concerned Antioch resident May 12, 2014 - 12:15 pm

It is my understanding that the city of Antioch isn’t even collecting what is on the books right now for taxes/fees– as it does not have the dedicated manpower to do so. Being there is already an ordinance in place to charge business license taxes, I don’t see why there would be a need for a ballot measure to be voted on. The city council has the authority to raise the rate of the existing tax. The council needs to get with the program and at least raise the tax to $100.00 (equal to Brentwood/Oakley). The tax doesn’t seem to be a deterrent for businesses in Brentwood. If the Antioch city council would do that, then they would need to have in place effective measures to enforce the collecting of the tax and accountability for the usage of the funds received.

Martin Fernandez May 12, 2014 - 2:21 pm

We made it very clear built into our initiative there was $300,000 for staffing a “collection dept” that would be able to collect all monies owed to the city that have not been collected in the past.

Very few landlords have told us they would pass this on to the renters. It is a cost of doing business and therefore tax deductible according to their own accountants. If they choose to raise the rent $20 a month that is their right. Most raise the rents periodically just because they feel like it.

Martin Fernandez May 12, 2014 - 2:30 pm

The initiative presented has a $300,000 staffing fund for a “collections dept.” This dept would collect all monies due to the city not just this item.

As far as landlords raising the rent $20. to cover this expense some have said yes and some no. It is a “cost of doing business” and they should do what their tax expert advises them. Landlords raise rents all the time whether you think it is warranted or not. Just because they can.

Martin Fernandez May 12, 2014 - 2:57 pm

Don’t forget this initiative goes on long after Measure C for the 1/2 cent sales tax is gone. It is a permanent fee and the council would have the option to raise it down the road. This is collected by most cities in the state. Landlords down south pay thousands for this rental fee.

karl dietzel May 12, 2014 - 3:21 pm

there is an other impact here which is at least important to me.
the very same petition was on the table already last year together with measure c. all 5 council members supported the measure until 2 weeks prior. then “suddenly” 3 council members, harper, rocha and tiscarino bailed out.

again the issue to me is, if we get all the need signatures together, WE THE PEOPLE can decide/ vote over that issues and NOT a city council.
that’s democracy at it’s best in my book.

to the ones who are against it i will say, there are millions of dollars out there and on the books, but the city does not collect, you still voted for measure c. we need a steady flow of money.

Reginald Jamal Brown May 13, 2014 - 3:21 pm

I support the Rental License Fee for slum landlords. Without this more and more renters will move to Antioch. It is only $20 a month and other cities have higher fees to boot.

Furthermore, Agopian stays. Everyone else needs to find another job. Harper should be the first to go.

Comments are closed.