Unlike most communities in California, Palo Alto does not currently require local businesses to contribute to city services through a local business tax. To address increasing local needs, the City Council approved Measure K to tax mid‐sized and large businesses operating in the City to raise funds for general city services, including public safety, affordable housing, transportation and train crossing safety, and homeless services.
If re-affirmed, Measure L will amend the Municipal Code to allow the City to continue funding the transfer – first adopted by voters in 1950 – through natural gas rates to pay for general City services. Approval of this measure will not increase customers’ gas bills because the City’s current natural gas rates already include the cost of the transfer.
The measures, if approved by voters, would generate approximately $16.6 million in revenue annually. For more on the policy reasons and other background, go to www.cityofpaloalto.org/fiscalsustainability