January 14, 2014
Open Letter to City of San Diego Business Owners
Dear City of San Diego Business Owner,
San Diego is working hard to establish its reputation as an anti-business, anti-taxpayer city. Nothing demonstrates this better than the Linkage Fee, also known as the Jobs Tax; a fee that actually attacks your business and the jobs you create.
If you’re tired of the City of San Diego treating you like a target or a cash cow to fund their special interest pet projects, consider the alternative close to home.
The City of Oceanside is business friendly with no hidden fees, and would welcome you and your business.
In Oceanside, your business will be truly appreciated as a vital part of our economy and our vibrant and growing community.
Oceanside can offer assistance to your business with new State of California incentives such as workforce development, R&D tax credits, hiring credits, sales tax exemptions on manufacturing equipment, and investment incentive credits that could be used when relocating or expanding your company.
Oceanside is a strategic location for your business due to its close proximity to freeways, light rail lines, available land and buildings, colleges and universities, a quality labor pool, and the most affordable housing in a coastal Southern California city.
Vacant parcel sites immediately available:
• Pacific Coast Business Park: 124 acres Biotech, R&D, and Manufacturing
• Seagate Corporate Center: 384,500 sq. ft. available
• Ocean Ranch Corporate Center: 400,000 sq. ft. available plus large lots
• Oceanside Gateway Business Park: 172,605 sq. ft. available
Vacant large buildings available:
• 4010 Ocean Ranch Blvd. is a 203,780 sq. ft. building on 10 acres with 349 parking spaces
• 1875 Ord Way in Prescott Industrial Park is a 140,969 sq. ft. building with 280 parking spaces
• 1890 Ord Way in Prescott Industrial park is an 89,686 sq. ft. building with 178 parking spaces.
There are over 200 acres of vacant land available for commercial development. The City of Oceanside’s staff is ready to assist you to find buildings or available land and is committed to expediting approvals to get your business up and running quickly. If specialized training is needed, Oceanside can also help facilitate a partnership between local colleges and universities to create a program that fulfills your business’s needs.
Oceanside is open for business. Please contact us to let us know how we may assist you.
Jerry Kern
Council Member
jkern@ci.oceanside.ca.us
Gary Felien
Council Member
gfelien@ci.oceanside.ca.us
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Here is the PDF of the letter…
Open Letter San Diego Business 01-14-2014
Comments 15
I am as quick to complement as I am to criticize. Robust competition, between the cities, offering more economic freedom is a welcome sign.
Well done to both Councilmen Kern and Felien.
Probably more business friendly than San Diego. But 5 generations of my family have lived in Oceanside, 2 of those generations have/had small businesses. They don’t think Oceanside is business friendly. Should I compile a list why?
Author
Elliot, Absolutely. Why not have the discussion right here and we will ask these two council members and others to weigh in.
The City of Oceanside used to be not so friendly. Now, with good people trying very hard, with more businesses succeeding than ever, with leaders working with the City to improve, the City of Oceanside IS truly business friendly.
Sure, just like you’ll get an occasional bad customer, you can still get an occasional bad experience. But know this. Jerry Kern and Gary Felien answer their calls and emails.
Come on, stop talking and get up here to set up shop.
Reformation has to start somewhere. If Coastie Greenie Luddites were to take a serious hit in Oceanside it would be a real encouragement for the rest of San Diego County. Who knows what entrepreneurial opportunities would spring forth with attendant jobs and wealth? Jerry Kern and Gary Felien, you certainly have spotlighted the need and generated interest.
Oceanside doesn’t have San Diego beat in every way. A business with 50 employees grossing $10 million per year would pay a $385 business license fee in San Diego. In Oceanside, the fee would be $5,000.
HQ has a point — on one issue, Oceanside apparently does NOT fare well vis-a-vis San Diego. Not surprising. Both sides doubtless could pull up a fact or three favoring their side. Let the games begin!
One thing every city will CLAIM as their strong point — “WE ARE BUSINESS-FRIENDLY!” A more useless assertion cannot be imagined.
I spend my time comparing CA with the other states on various tax, regulatory, and other economic factors. It would be GREAT to see a similar comparison put together — comparing the various cities in the county (and the unincorporated county area as well).
I doubt it will happen — it would take a prodigious effort, and the cities might not be so forthcoming with the information.
Perhaps SDCTA would like to take a shot at this? Easy for ME to say!
When I incorporated a business in San Diego, I received reams of information on tax and regulatory and environmental compliance…labor concerns, and safety issues…galore…In fact, the first actual correspondence I recall receiving was an annual “City Business Tax” bill charging my new company $800.00 dollars for the “privilege” of doing business in San Diego even before the paint on the store front shingle was dry. I don’t remember any salient, instructive information on how the city was invested in me as a new business owner to flourish in ANY way…it was literally all about how they could bilge and nickel and dime us through taxes and “fees”.
F.F.,
To get a “City Tax Bill” of $800, a business would need to have 133 employees.
It’s funny how a very horrible idea can make a bad idea sound good. This is a perfect example of the problem. The Linkage fee is of course a complete assault on Economic activity. However the idea of re-affirming the principle that it is the responsibility of the Oceanside Government to promote business opportunities in Oceanside by redistributing confiscated wealth from taxpayers in the form of workforce development, R & D tax credits, hiring credits, sales tax exemptions on manufacturing equipment and investments incentive credits. When will we wake up as a people and reject the idea of it being the Government’s job to centrally plan economic opportunity, and embrace the idea of Laissez-Faire Capitalism. Here is a thought, if you want to have more economic activity in your city, just keep repealing laws that increase the cost of doing business. Focus your efforts instead on securing the property rights of your citizens in-lieu of violating them. Eliminate all redistribution programs and just embrace the idea of leaving us alone.
I think “Founding Father” is confusing the city bill with the onerous California corporate minimum tax. For corporations — even LLC’s and many nonprofits — you must pay the annual $800 corporate business franchise tax. Here’s the article I wrote on this a while back:
California has a nasty business tax that is seldom discussed. Imagine this:
The annual CA state income tax on a corporation (no matter how tiny) that makes only $800 profit? $800.
Yes, they take it all. But wait. It gets “better.”
The tax on a corporation that barely makes a one dollar profit? $800.
The tax on a personal corporation (LLC and sub-S included) that pays out earnings as salary and retains no money or profit? $800.
The tax on a corporation that LOSES money? Same $800.
An out-of-state corporation that does a SINGLE BUSINESS TRANSACTION in California? You guessed it. $800.
The tax on a nonprofit corporation OR ASSOCIATION that is not a “charitable 501(c)3” type organization? $800.
Yes, California is BY FAR the most anti-business state in the nation. Comparisons of our California business taxes/climate with other states normally ignore this jewel.
It’s labeled a “franchise tax.” But in reality it is a high minimum state income tax.
As far as I can find, only one other state has such a tax — Oregon recently implemented a similar $150 minimum tax. But then, Oregon has no sales tax! I’d bet a few others have some minimal filing charge of $25-$50 a year, but I don’t have time to run ’em to ground.
The only meaningful exception is that a corporation is exempt during its first year. I guess they want business people to settle into the corporate business structure before they drop this load on them.
Bills to lower or eliminate this evil tax have never made it through our wonderful state legislature. And never will, I suspect.
And BTW, then there’s the OTHER little-known nasty California business tax — a gross receipts tax on LLC’s that can be FAR larger than this $800 franchise tax.
Comparing California cities’ taxes and fees is healthy. But we should also think outside the (California) box. Consider this:
Average 2012 CA impact fee for single-family residence was $31,100, 90% higher than next worst state. 265% higher than jurisdictions that levy such fees (many governments east of the Sierras do not).
For apartments, fee averaged $18,800, 290% above average outside state.
http://www.newgeography.com/content/003882-california-homes-require-real-reach
Anecdotally I’m hearing that San Diego area fees are considerably higher than these statewide averages. Moreover, as I understand it, the fee becomes part of the purchase price, so buyer pays an annual property tax on the fee!
“Richard”,
If I remember correctIy, I actually had both a State Franchise Tax and a City tax…in either case, they were costs that were completely punitive for simply having a business in San Diego CA that added NO value to the ability to conduct business.
“Founding Father” — You certainly DID have a city tax/fee, but it’s unlikely it was $800 — the EXACT same as the state corporate franchise tax. And yes, they are punitive levies — especially considering how high a percentage of businesses fail in this state compared to other states:
California small businesses failed in 2011 at a rate 69% higher than the national average — the worst state in the nation.
http://money.cnn.com/2011/05/19/smallbusiness/small_business_state_failure_rates/index.htm (based on Dunn & Bradstreet study)
In 2012, our supply of California businesses shrunk 5.2%. In ONE year. NOTE: That’s a NET figure – 5.2% fewer businesses in CA in 2012 than were here in 2011. Indeed, in 2012, CA lost businesses at a 67.7% higher rate than the 2nd worst state! http://riderrants.blogspot.com/2013/07/in-2012-ca-lost-businesses-at-677.html
“Richard”,
Appreciate the insight…and the statistical data…what an indictment to CA as a state to do much of anything except dish out politically-targeted entitlements and reward key enabling bureaucrats with huge overblown pensions…and on the very tax revenue from the very people left fueling the sputtering auto that is the CA economy. yikes…