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Cupertino’s ‘Apple employee tax’ put off for one year

Cupertino elected officials have scrapped a controversial plan — for now — to impose an employee tax on Apple and other businesses in the city, saying they don’t want to move forward in haste and will instead ask voters to weigh in during a special election in 2019.

Though the city council intended only to discuss the plan Tuesday night, after impassioned public comment during which several people spoke out against the proposal as either too vague or unfair to businesses, the council voted 3-1 to put off placing a measure on the November 2018 ballot. Vice Mayor Rod Sinks recused himself because his wife is an Apple employee.

Councilman Barry Chang dissented, saying that waiting even another year would prolong the city’s transportation problems. While the council had not yet come up with specific plans to use revenue generated by the so-called head tax, it had broadly earmarked transit and housing improvements.

“I think not only here, the big corporations in the entire nation, the corporations need to take up their fair share to help solve the problems we are facing now,” Chang said. “So that’s why this issue needs to be done and needs to be done now instead of waiting.”

Chang said he proposed a more ambitious plan two years ago — which would have charged businesses $1,000 per employee — but that that proposal was shot down by other council members.

“Two years ago, no council member supported it, so nothing happened,” he said. “Two years passed. If we don’t do anything this time now, another two years will pass, nothing will happen, I guarantee you.”

While Councilman Steven Scharf appeared to be in agreement with Chang about the urgency of addressing the region’s transportation problems, he explained, “We can’t do this justice in two weeks.”

The council would have had to agree by July 3 on the details of the proposed tax in order to get it on the November ballot. Instead, the council now plans to discuss on July 3 whether it should propose a general or special tax on businesses to put before voters in 2019.

 

 

Read more on The Mercury News

 

 

Cupertino to get serious tonight about new business tax that could generate millions from Apple

Cupertino’s City Council tonight will consider what kind of restructured business tax it might place on November’s ballot for Apple Inc.’s headquarters city.

The move comes as nearby Mountain View looks like it’s headed toward referendum to place a “head tax” on Alphabet’s Google and other large employers in its boundaries. Public polling in Cupertino has indicated heavy support for something similar there. Such a tax would mostly hit Apple, by far Cupertino’s largest employer.

Just a week ago, the City Council in Seattle — headquarters to Amazon.com — repealed a controversial head tax that it had put on the books just a few weeks earlier, after opposition from Amazon and others in the business community.

No such public threats have been made in Mountain View, but the Cupertino Chamber of Commerce posted a no jobs tax message on Twitter on Friday and sent out a press release quoting its president, Andrew Walters, calling for no such measure in November’s election.

The impetus for this budding movement in prosperous, tech-dominated cities is the belief that the traffic congestion and housing shortages in those places is due to tech growth, Cupertino Vice Mayor Rod Sinks recently told the Business Journal.

But although no one from Cupertino’s chamber would comment on the record, the organization’s opposition stems from the fact that the tax revenue the city hopes to gain is not restricted to specific projects that would address transportation issues that the chamber sees as most critical, the Business Journal was told.

Tonight’s meeting will be to decide what kind of tax — head tax (based on the number of a company’s employees), payroll tax or an expansion of Cupertino’s existing square-footage tax — might be proposed.

 

 

Read more on Silicon Valley Business Journal

 

 

Apple announces second campus, promises to bring 20,000 jobs

Part of $350 billion U.S. investment, it may set off Amazon #HQ2-like scramble among cities

On the heels of the frenzied competition between cities for Amazon’s HQ2, Apple announced earlier todaythat it will also be building a second headquarters somewhere in the U.S.—setting off similar excitement among cities and local leaders.

According to a report in the Associated Press, Apple will be building a second headquarters over the next five years that will employ an estimated 20,000 workers, all part of a $350 billion commitment to the U.S. economy. The company plans to announce the location of the second headquarters by the end of the year.

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