Sacramento Metro Chamber CEO offers concerns about city business tax increase

The new president and CEO of the Sacramento Metropolitan Chamber of Commerce has concerns about the process the city went through in developing a business tax increase.

Robert W. Heidt Jr., however, won’t say for now if the chamber will oppose or support the plan that raises taxes by as much as 400%. He said the issue is still being studied by chamber officials.

Voters are scheduled to decide the issue by referendum on March 5, either approving or rejecting the plan that was approved by the City Council on Nov. 15.

The tax plan comes as the city faces a potential $24 million budget shortfall in the fiscal year starting next July.

“While we understand the city needs to balance the budget we also have to be very mindful that we want to be a community that shows the world we are open for business,” he said.

Heidt, who started in early January, made his comments before the start of the chamber’s annual awards dinner Friday at the Safe Credit Union Convention Center.

He said chamber officials were never consulted before the City Council’s law and legislation committee revealed the tax proposal plan in early October, something he wants to ensure will happen in the future on business issues affecting the community.

Heidt didn’t blame the city for not informing the chamber saying, “Moving forward we just need to do a better job on being proactive on both sides.”

The last time the city changed the business operating tax was 1991. No business in the city currently pays more than $5,000 a year in taxes. The proposed increase would raise taxes for the largest companies in Sacramento to as much as $125,000 over a five-year phase-in period.

City officials said that given inflation, a tax increase is overdue, but admit the increase would help plug the hole in the budget. The increase is expected to increase revenue to the city by up to $6 million a year.

Heidt said the city’s approval process seemed rushed. A key role of a chamber of commerce, he said, is to find out about upcoming legislation and advocate for the business community.

“We’re going to work those halls of government and make sure to protect the interest of business,” he said.

Sacramento chamber award winners announced

This year’s award dinner attracted around 800 people, close to pre-pandemic numbers, chamber officials said.

The Small Business of the Year award went to The Sacramento Observer, a news website and print publication aimed at the African American community.

President and Publisher Larry Lee was credited with making The Observer an important voice in covering the African American community.

Lee’s parents, William and Kathryn Lee, started the news organization in 1962.

Other winners included:

• Businessman of the Year, David Lowe, president and general manager of KVIE, the public broadcasting affiliate in Sacramento.

• Businesswoman of the Year, Allison Otto, president and CEO of Otto Construction.

• Sacramentan of the Year, Garry Maisel, president and CEO of Western Health Advantage,

• Entrepreneur of the Year, Mark Haney, founding partner of The Growth Factory and host of the podcast “The Mark Haney Show.”

• Entrepreneur of the Year, Tiffani Scott, president and CEO of Paratransit Inc.

This story was originally published January 22, 2024 at 5:00 AM.