Measure X: Scotts Valley business tax opens with large lead

Tuesday, Nov. 5, 10:45 p.m. —Measure X, Scotts Valley’s updated business tax, appears to be passing handily, having received 72.57% of the vote. Only 27.43% of the votes cast are on the “no” side.

Measure X proposes an update to Scotts Valley’s business license tax, which has not been updated in over 30 years. City officials say that as a result, the fees that businesses currently pay — a flat $50 per business and $40 for each employee — are not aligned with the cost of running local government and are flawed in treating small and big businesses the same.

If the measure passes, it would introduce new rates that correspond to the amount of revenue each business generates. The base rate of the tax would rise to $150 from $90 and the city would implement a sliding scale to determine how much a business would pay annually.

The measure, placed on the ballot by the Scotts Valley City Council, is expected to raise about $1.1 million annually until ended by voters. The revenue would be allocated to the city’s general fund and may be used for any legitimate governmental purpose the city council approves, including road repairs, parks and open space maintenance and administering activities like wildfire prevention programs.

A “yes” vote is a vote in favor of the new rates, while a “no” vote is against. Should the measure be voted down, the current business license tax that has been in effect since 1992 would remain. A simple majority of the city’s approximately 8,838 voters is needed to pass the measure.

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