City Proposing A 140% Tax Hike

Increasing business tax as other sources for more money fail.

The proposed increase would take the current rate from $0.001 per dollar of gross receipts to $0.0024.

If passed, the initiative would also remove the current cap.

Right now, if a business makes more than $3 million in gross receipts, they only pay $3,000 in business license tax because that is the current cap.

City Manager Ben Harvey said there are about 20 businesses in Pacific Grove affected by the cap.

The city has been exploring ways to increase revenue for months and this is one of the ideas the council thinks could work.

City Proposing A 140% Tax Hike