Supporters say Measure R does not change the tax for residential rental businesses and preserves exemptions for qualifying organizations. It taxes retail business, such as restaurants and sales of goods, at 0.1%, and service businesses, such as orthodontics, accounting, and legal, at 0.5% on gross receipts over $200.000. In this way, Measure R brings the tax rate on service businesses close to Albany's 0.5% sales tax rate on retail businesses. With this restructuring, Measure R lowers the tax for more than seven out of ten retail and service businesses. Businesses with greater revenues would contribute proportionately, creating a fairer relationship between tax responsibility and business activity.
A YES vote on this measure means: you approve this amendment to the City’s business license tax code.
Opponents say that a gross receipts tax is an income tax of the worst kind. It taxes, not the money that you can take home, but all of the incoming revenue to your business without the ability to make deductions for rent, inventory, payroll, healthcare benefits and overhead, including utilities. It doesn't differentiate between businesses that have a high margin of profit and a low margin of profit. Businesses like grocery stores, which have an extremely low margin of profit (2%-3%) will end up paying a much higher tax on their actual net income. It is a tax on money that they do not make.
A NO vote on this measure means: you do not approve this amendment to the City’s business license tax code.