Business Tax Modernization and Minimum Wage Increase Outreach Plan
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1 Business Tax Modernization and Minimum Wage Increase Outreach Plan Community and Economic Development Committee Meeting November 28, 2016 Item (d)(7)
2 City Council Direction Voters approved Measure G, Business Tax Modernization, on November 8 Council directed the City Manager to develop a public education campaign for implementing the Business Tax and changes to the Minimum Wage And to report to CED Committee in December 2016 with implementation beginning January
3 Goals Minimize public confusion and surprise regarding changes to the Business Tax and Minimum Wage Minimize the number of potential public complaints and demands on the Call Center and frontline staff Achieve community understanding and acceptance Reduce costs of transition and implementation 3
4 Strategies Use direct communication with affected audiences Ensure multiple contacts through various channels Leverage community-based information resources and organizations Present information in multiple languages, depending on audience, location, and community. 4
5 Strategies (cont d.) Use existing City programs and professional organization contacts in Office of Economic Development, Planning, Building & Code Enforcement, and Council Offices Develop written materials that are available in print form and online for easy access. Use advertising as appropriate for audiences Use wide range of news media, including ethnic media. 5
6 Audiences External (Business Tax) All San Jose businesses New payers of the Business Tax, such as small residential landlords External (Minimum Wage) San José businesses with local employees Residents earning minimum wage High schools and community colleges Labor organizations 6
7 External (both) Audiences (cont d.) Chambers of Commerce Local and neighborhood business associations Business services consultancies such as tax and accounting professionals, law firms, and other business services Internal City departments and frontline staff, especially Call Center, Finance, OED, PBCE, work2future, Business Owner Space City Council Offices and staff 7
8 Messages Details about specific changes that affect businesses San José voters approved the changes to the Business Tax and Minimum Wage Implementation schedule Reasons for the changes, such as regional context, support for services valuable to businesses, overdue correction Resources available for more information 8
9 Communications Channels, City website: specific topic pages for Finance, OED, Public Works/Minimum Wage, work2future, etc. Finance Department: direct mail, billing mailings, database City Council Offices: newsletters, websites, outreach OED/Business Development: mailing lists, personal contacts, newsletters Business Owner Space, small business outreach, businessoriented events 9
10 Communications Channels (cont d.) PBCE: Small Business Ally program Chambers of Commerce, including ethnic chambers Neighborhood business associations and community-based organizations e-lists Social media: Nextdoor, Facebook, etc. News media, including non-english language media 10
11 Tactics Collateral materials Online (web, social media, electronic materials) Direct Mail Advertising Partner Organizations News Media Community Meetings (if needed) 11
12 Residential Landlords Registration Deadline Extension Effective July 1, 2017, residential landlords of 1 and 2 units will be required to register and pay the Business Tax Municipal Code gives businesses a 90-day grace period to register and pay Staff anticipates it may take longer than 90 days for the new group of residential landlords to register. To allow sufficient time for outreach, staff recommends that Council extend the deadline by six months to December 15,
13 Cost Summary City Council established funding reserve for Business Tax Modernization outreach costs with a $150,000 reserve on October 18 (Annual Report) Budget appropriation actions will be brought forward December 13 to allocate this funding to the Finance Department Any additional resource needs for Business Tax and Minimum Wage outreach will be evaluated process as part of the budget process 13
14 Recommendation a) Accept staff s report on the Business Tax Modernization and Minimum Wage Increase Outreach Plan; b) Refer to City Council recommendation to approve an ordinance to extend the deadline from July 1, 2017, to December 15, 2017, for residential landlords of 1 or 2 units to register with the City and pay the Business Tax without incurring interest or penalties; and c) Refer this item to the December 13 City Council meeting for full Council consideration including agendizing necessary budget actions 14
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