This page contains the complete text of the following documents about Measure T.
More than 5,000 registered Richmond voters signed petitions to put Measure T, “A Fair Share for Richmond,” on the ballot. This is a completely volunteer driven, grassroots effort led by Richmond voters. No paid staff are involved in the campaign.
Measure T would upgrade Richmond's business license fee on large manufacturers. The new fee would be 0.25% of the value of raw materials they process, if this amount is more than their current fee. Large manufacturers, like Chevron, would be required to pay their fair share for operating so profitably in our city. The business license fee for landlords, retail, construction, service providers, restaurants and other non-manufacturing businesses would remain the same with NO increase.
To welcome new businesses to Richmond, the business license fee would be waived for all new businesses for up to the first 18 months of operation.
The City would receive an estimated increase in revenue of at least $16 million each year from Chevron, which refines about 240,000 barrels of oil per day. The Chevron Corporation made $18.7 Billion in profit in 2007 and $11 Billion in profit in the first six months of 2008. That is more than $16 million in profit every 7 hours, so measure T will NOT be an unreasonable burden.
Directly invested in Richmond, this revenue could be used to train and employ thousands of at-risk youth, open recreation centers and libraries day and night, fix our streets, and substantially increase violence prevention efforts.
Measure T will not cost individual taxpayers a penny.
A vote for measure T is a vote for a better Richmond.
Endorsers
Measure T, "A Fair Share for Richmond," will bring hundreds of new jobs to Richmond: new service jobs, contracts with local companies, and partnerships with local non-profits.
Measure T will help Richmond advance towards a new and sustainable economy. Richmond residents could be employed in city services (libraries and recreation), fixing streets, solar installation, and servicing at-risk populations with crime and violence prevention tools.
Measure T will affect only a tiny fraction of Richmond's 68 licensed manufacturers. Companies will only be affected if 0.25% (¼ of 1%) of the value of their raw materials exceeds their current fee.
The City would receive an estimated increase in revenue of at least
Green businesses like solar panel distributors and installers will not be affected. A manufacturer of countertops from inexpensive recycled materials is unlikely to be affected. A bakery with 200 employees would have to spend over $3.4 million on ingredients like sugar and flour before being affected.
By far the largest manufacturer in Richmond is Chevron, which continues to make record profits ($46.5 billion, January 2006-June 2008) while operating its refinery in a prime location on the Richmond shoreline. Less than 5% of Chevron employees are Richmond residents. It is fair to require that Chevron do more for Richmond.
Investing in Richmond will enhance the quality of life in the community, providing an environment that gives young working families a reason to stay while attracting new businesses to Richmond.
Measure T provides funds for job creation, a cleaner community, and a brighter future.
Vote YES on Measure T for Richmond's fair share.
Signers
Gayle McLaughlin, Mayor of Richmond
John Gioia, Contra Costa Board of County Supervisors, District One
Millie Cleveland, Service Employees International Union( SEIU)- 1021
Timothy Manhart, San Pablo Ave Merchants Association
Jeannette Mahoney, El Sobrante Hills Neighborhood Council
CITY OF RICHMOND
Shall the City of Richmond adopt an ordinance to (1) levy a new tax on manufacturing businesses equal to ¼ of 1 % of the value of the raw materials used in the business’s manufacturing process per year, which would be the tax amount paid by a manufacturing business if that amount is more than the business would otherwise pay under the City’s current general business license law; (2) standardize the time period for business licenses so that all business licenses are valid for the calendar year; and (3) require annual audits of the taxes collected under the Richmond Municipal Code?
CITY ATTORNEY’S OFFICE IMPARTIAL ANALYSIS OF MEASURE “T”
The City of Richmond currently requires businesses in the City to obtain a business license and pay a business license fee, which is a tax for general revenues. The amount of this tax is primarily based on the number of persons employed by the business.
Under this measure, manufacturing businesses would be taxed under a new formula.Manufacturing businesses would pay the greater of (1) the tax that would be paid by other general businesses or (2) a flat fee of one fourth of one percent (0.250%) of the value of the raw materials used in the manufacturing process. Only raw materials actually used in the manufacturing process are counted for purposes of calculating the tax. Any materials merely owned, stored in inventory, warehoused or transported are not included in the calculation. The calculation for each tax year would be based on the total value of materials used in the prior year. The measure contains definitions of manufacturing, manufacturing materials and a method of valuation in order to implement this new approach.
This measure, if approved, would result in a uniform business license term. Currently business licenses run a 12 month period from the date the license is issued. This measure would set the term for all business licenses to January 1 through December 31 and provides a mechanism for conforming current business licenses to the new term.
In addition, the measure provides that that the business license fee is not a property tax, and requires annual audits of the taxes collected under the Richmond Municipal by the Audit Committee of the Richmond City Council.
The City estimates this Measure will generate about $26,462,500 in new revenue beginning in 2009, of which about $26,462,500 will come from manufacturing businesses.
From the impartial Richmond City Attorney's assessment of Measure T:
"The City estimates this Measure will generate about $26,462,500 in new revenue beginning in 2009..."