Last week, on August 3, the Milpitas City Council voted unanimously to place the “City of Milpitas Local Funding Measure” on the November 2026 ballot.
As of now, as a result of the city’s 50-year-old business tax structure, some small Milpitas businesses are paying more than 70 times per employee than corporations and large businesses. The new measure would seek to ensure that larger businesses contribute more to the funding of essential city services than smaller ones. By design, the measure does not raise taxes for Milpitas residents; it applies only to businesses.
In a statement, City Manager Willie Hopkins said, “The proposed measure was placed on the ballot following a six-month engagement effort with Milpitas business owners and stakeholders, as well as more than 700 residents. We are thankful for all who shared their perspectives and feedback – especially our small business owners – which was utilized significantly in developing the measure.”
If enacted, the measure will ensure that all the funds it generates will be directed into Milpitas city services. The City of Milpitas is currently framing the measure as a way to maintain its current level of service to the public.
Meanwhile, according to Hopkins, there is room for improvement: “The City needs additional local funding to help clean up and prevent illegal dumping/neighborhood blight, and address homelessness by helping move people off the street and into shelter, treatment, and supportive services to ensure Milpitas is safe and clean.”
The measure can also help with replacing water and sewer lines, fixing storm drains, and bringing more good-paying jobs into the local economy. The cleanliness of neighborhood streets and sidewalks will also be prioritized.
If the measure gets voted in, all city businesses would pay an annual flat rate, while businesses generating more than $700,000 in annual gross receipts would also pay between 25 and 35 cents per $1,000 of gross receipts, depending on their business category.
Here’s a chart from the City that shows what the annual flat rate for all businesses would be:
With this new structure, the current employee-based tax would be replaced with a gross receipts-based tax.
The full City of Milpitas Local Funding Measure resolution can be read here.
Regarding the November Business Tax Measure, it indicates that the additional funds that might be received if it passes could pay for city services and mentioned also help pay for replacing water and sewer lines. How much money has the city collected from their residents, over the last several years, that shows up as a “surcharge” on our water bill, that is supposed to pay for replacing water and sewer lines? I as a resident of Milpitas who has been paying this additional charge on my water bill have never received any updates regarding the funds collected and notification of when the replacement project would begin. Also, I have not idea if the city has a special account that the collected funds go into, that the city doesn’t “borrow” or “use” when the city has a non-water/sewer line need. Please provide the residence with verification of how much money has been collected and when the city anticipates starting to replace the water/sewer lines.