BUDGET AND FINANCE COMMITTEE REPORT relative to an analysis and extension of the Internet-based Business Tax Subclassification.

Recommendations for Council action, as initiated by Motion (Blumenfield - Cedillo):

1. REQUEST the City Attorney to prepare and present an ordinance to amend Ordinance No. 181127 to extend the sunset provision for Internet-based businesses to the 2018 tax period.
   
   
2. INSTRUCT the City Administrative Officer (CAO), with assistance from the Chief Legislative Analyst, to identify funding to allow the Office of Economic Analysis to complete a comprehensive analysis of the Internet-based business tax subclassification with regards to effectiveness of the ordinance to attract new Internet- based businesses, promote job growth, and contribute to local economic growth.

Fiscal Impact Statement:  The CAO reports that extending the Internet-based business category to the 2015 tax period with the lower tax rate will result in the City continuing to forgo undetermined business tax revenue. This revenue loss may be offset by new Internet-based businesses becoming established in the City or by positive impacts to other General Fund revenues. However, the full fiscal impact cannot be determined at this time.
 

Community Impact Statement:  None submitted.

ATTEST:                   Holly L. Wolcott, CITY CLERK

By

Council Clerk                    PRESIDENT OF THE CITY COUNCIL