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The city of Sacramento hopes a new business tax increase will help reduce next year’s budget deficit by more than $50 million. According to the city, the budget deficit is not the result of a single factor, but rather the combination of multiple factors, including: Things like inflation, new collective bargaining agreements, and voter-approved ballot measures directing general fund spending. They are now looking at opportunities to reduce costs, increase revenue, and restructure service levels. One of the new strategies is a proposal to expand the business. Under Act C, professionals in 16 industries, including accountants, architects, engineers and psychologists, would have to pay $684 in annual business taxes. This is an increase from the various business tax rates starting at his $75 for the first three years of a nationally certified professional. This increases to $150 for professionals with 3 to 7 years of service and rises to $300 thereafter. With the city looking to double that amount, some state-licensed mental health professionals are concerned about what this means on top of other fees. “I think a lot of the people who will be affected by this measure are probably small and medium-sized businesses, people who have their own business and are responsible for a lot of their own overhead costs. It has a big financial impact on me, but if I have to increase my fees, it could impact my clients as well,” said Ryan A. Chepelka, a licensed psychologist. Mr Cheperka has been practicing for 10 years and faced further increases earlier this year after the cost of renewing his license with the Board of Psychology increased. From $500 to over $800. Corinne McIntosh Saco, also a licensed psychologist, added that this could result in fees approaching $1,500. This does not include operating costs such as rent and malpractice insurance. “This is such a large increase that it would go into effect almost immediately if the bill is passed, and it feels very insensitive,” Saco said. Measure C would also raise the tax per employee to $68. Councilmember Katie Valenzuela told KCRA 3 about the tax: That’s one of the reasons the city has a budget deficit. Here is her statement: “We haven’t updated the BOT for 30 years. When you talk about structural deficits, this is part of what led to that deficit. There is a disconnect between supporting businesses and generating revenue. There’s definitely a balance to be struck, and I think this bill strikes that balance by generating most of its revenue from businesses that earn more than $12.5 million a year. ” Valenzuela added that the City Council held three public debates before adopting anything for the primary. Measure C is on the March 5 ballot and, if passed by voters, would go into effect on July 1, 2024. A city spokesperson also said the $684 tax rate is adjusted for inflation, adding that they are in contact with the Chamber of Commerce, the Greater Sacramento Area Economic Development Authority and the government. before submitting a final proposal to the Metro Chamber of Commerce and City Council. See more of California’s top stories here | Download the app.
The city of Sacramento hopes a new business tax increase will help reduce its budget deficit by more than $50 million next fiscal year.
The city says the budget deficit is not the result of a single factor, but rather the result of multiple factors, including inflation, new collective bargaining agreements and voter-approved ballot measures guiding general fund spending.
They are now looking to reduce costs, increase revenue, and restructure their service levels.
One of the new strategies is a proposed increase in business taxes for nationally qualified professionals, which has not been updated since 1991.
under Measure CProfessionals in 16 industries, including accountants, architects, engineers and psychologists, will have to pay $684 a year in business taxes. This is an increase from the various business tax rates starting at his $75 for the first three years of a nationally certified professional. This increases to $150 for professionals with 3 to 7 years of service, and thereafter to $300.
The city is trying to double that amount, but some state-licensed mental health professionals are wondering what this means on top of the other costs they pay to continue practicing. Some people are concerned.
“I think a lot of the people who will be affected by this measure are probably small and medium-sized businesses, people who own their own businesses and handle a lot of their own overhead costs. “It affects my life, but it could also affect my life.” Clients if I need to increase my rates [for clients]” said licensed psychologist Ryan A. Chepelka.
Cheperka, who has been practicing for 10 years, faced another increase earlier this year after the psychology board increased the cost of renewing her license from $500 to more than $800.
Dr. Corinne McIntosh-Sako, another licensed psychologist, added that this could cost close to $1,500 in fees. That doesn’t include the costs of running her business, such as rent and malpractice insurance.
“I very much understand and am very sympathetic to the need for tax increases. It’s such a large tax increase that if passed, it would go into effect almost immediately, and it feels completely insensitive,” Sako said. said.
Measure C would also increase taxes to $68 per employee.
Councilmember Katie Valenzuela told KCRA 3 that the tax is part of the reason for the city’s budget deficit. Here is her statement:
“We haven’t updated the BOT in 30 years. When we talk about structural deficits, this is part of what led to that deficit. There is definitely a disconnect between supporting businesses and generating revenue. There has to be a balance, and I think this measure captures that.”It balances it by generating most of its revenue from businesses that generate more than $12.5 million in annual revenue. ”
Valenzuela added that the City Council held three public debates before adopting anything in the primary.
Measure C is on the March 5 ballot and, if passed by voters, would go into effect on July 1, 2024.
A city spokesperson also said the $684 tax rate has been adjusted for inflation and is in contact with the Chamber of Commerce, Greater Sacramento Economic Development and Metro Chamber of Commerce before submitting a final proposal to the City Council. he added.
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