National City is currently facing a $12 million budget deficit, and city leaders are exploring a ballot measure that would raise the gross receipts tax on businesses a tax based on total revenue, not just profits.The proposal drew strong opposition from business owners at a special City Council meeting Tuesday, where many argued they should not bear the burden of helping close the city's financial gap.The tax would vary by industry and is projected to generate close to $8 million in annual revenue by 2028.Mayor Ron Morrison acknowledged the measure would fall short of solving the problem."Even if we had the highest numbers, it does not solve anything. We still have a large deficit beyond that point," Morrison said.Business owners warned the tax increase could force closures and discourage new businesses from opening in the city.Jenifer Ball, president of Mile of Cars and Ball Automotive Group, said the proposal would make National City the least competitive city in the county for businesses."It's not really making it a welcoming city. It would have the highest sales tax and the highest business tax of any city in the county," Ball said.Ball also said businesses should have been included in the conversation earlier, particularly after a survey presentation claimed voters would support paying more to preserve city services from public safety to homelessness programs."We would have preferred they came to us first with what they have cut and then talked with us about how we can then additionally help them, and that did not happen," Ball said.Small business owners, including minority-owned mom-and-pop shops, also raised concerns about the financial impact."That's being taxed is well in the thousands.
That's not easy for anyone, especially for business owners that are already struggling here in National City," said Mark Philip Valerios Santos, owner of Valerios Bake Shop.During public comment, community member JoAnn Fields said many minority business groups still haven't been adequately informed about the proposal and warned the rushed timeline is creating inequity.However, not everyone at Tuesday's meeting opposed the measure.Jeremy Day, president of the National City Firefighters, argued the city's business license fee is 47 years old and in need of reform."Our concern now is that without the funds, we face potential cuts," Day said.
Summary from source