Measure M

City of Upland Business License Reform Measure

Measure M would revise the City’s business license tax to be based predominantly on gross receipts rather than a range of factors, including number of employees. For small businesses with less than $100,000 in annual gross receipts, the business license tax shall be a flat $75.00 per year. For annual gross receipts over $100,000, the rates will vary by business classification.

This measure requires approval by a majority of voters voting on the measure to pass.

Fiscal Impact: Measure M is estimated to generate $3.3 million annually, $2.1 million more than the current business license tax structure.

Next San Bernardino County Measure: Measure N

See Endorsements for Measure M
Background

For decades, the City of Upland has levied a license tax on businesses operating within the City. The business license tax is a general tax. Revenues are deposited into the General Fund and may be spent for any City expense, like street repair, infrastructure repair and maintenance, emergency response, and public safety. The existing license tax structure was last updated in 1994. Because the existing structure treats most businesses with gross receipts over $1,400,001 identically, capping the amount of the tax at $864, the structure taxes small businesses at a higher proportional rate while taxing larger businesses at a lower proportional rate.

Proposal

If approved, Measure M would revise the City’s business license tax to be based predominantly on gross receipts rather than a range of factors, including number of employees. For small businesses with less than $100,000 in annual gross receipts, the business license tax shall be a flat $75.00 per year. For annual gross receipts over $100,000, the rates for each business classification would be:

  • Retail/Commercial: 0.065%
  • Contractors: 0.150%
  • Rental (commercial or residential): 0.200%
  • General Service (hair and nail salons): 0.125%
  • Professional service/calling or semiprofessional: 0.125%

Notwithstanding the above, the maximum business license tax would be capped at $28,000 per business per year. With the larger cap, the proposed measure would result in larger businesses paying a greater proportional share relative to small businesses than they do under the current structure.

Source: Measure M Impartial Analysis

San Bernardino County Election Resources