MEASURE

G

Shall a charge of 51 cents per square foot of all improvements over the first 120,000 square feet be assessed on all large nonprofit organizations within the City of Berkeley?

THE SITUATION

In 1994 California voters adopted a constitutional amendment which prohibits local governments from taxing nonprofit organizations on their gross receipts. It does not prohibit taxation on other grounds. Before 1994, the existing tax raised about $250,000 in Berkeley. The loss of this income has seriously affected city services, coming on top of the tax limits of Proposition 13 and other laws passed since that initiative.

This new tax would be only on the largest nonprofit organiza- tions in Berkeley, such as Alta Bates, and would raise about the same amount of tax lost in 1994. It would require a 2/3 vote and, if passed, would begin in January 1, 1999. The measure allows for indexing to inflation, but in order to raise the tax more than the cost-of-living, the City would have to return to the voters. However, it could suspend the tax, restart it at the present level, or lower it without another vote.

A YES vote means the City may tax larger nonprofit organizations on the basis of the organizations' improvements over the first 120,000 square feet.

A NO vote means the City will not impose this tax on large nonprofit organizations in Berkeley

· This tax would provide additional funds for basic city services: street repair, tree trimming, park maintenance, police and fire protection.

· Large nonprofits draw users and their cars, have large sewer systems, and need police and fire protection just as residences and businesses do.

· For years nonprofits paid their fair share of city services. This tax would restore that share from large nonprofits, those which place the heaviest demand on city services. Smaller nonprofits would continue to be tax free.

· There is no formal opposition.

Linda Maio, Councilmember; Maudelle Shirek, Councilmember; Bradford Smith, Waterfront Commissioner; Hank Resnik, Transportation Commissioner; Michael Veneziano, Parks Commissioner.

MAJOR OPPONENTS

There is no formal opposition recorded in the Alameda County Voter Pamphlet.