Overview

• Measure C is on the March 2023 ballot in Sacramento proposing several changes to the city's business tax structure.

Key Facts

• Would raise and add annual adjustments to the gross receipts tax rate and minimums paid by businesses.

• Increases tax rates and caps over 4 years for general businesses, professionals, contractors, and residential/commercial property rentals.

• New maximum tax caps phase in over 4 years, reaching over $125,000 for largest businesses.

Financial Impact

• Measure C would increase annual business license taxes paid by companies operating in Sacramento based on their gross revenues.

• Tax hikes in the measure are estimated to generate an additional $20+ million in city revenue annually.

Who is Impacted

• Sacramento businesses would pay higher license/operations taxes under the measure. Raises costs for companies earning over $100k.

Intended For

• Additional tax revenue is intended to support city services and address budget shortfalls to avoid cuts.

Voter Impacts

• Voters decide if they want to raise taxes on Sacramento businesses. Approving generates more city funds but increases costs for local companies. Rejecting avoids tax hikes but provides less revenue for city budgets/services.

In summary, Sacramento's Measure C seeks to amend the city’s existing business operations tax code to raise rates, thresholds, and caps over a 4-year phase-in intended to generate over $20 million more in annual city tax revenue.