Law and Legislation Committee 5/20/2025

The City of Sacramento Law and Legislation Committee met on May 20, 2025, to discuss modernizing the Business Operations Tax (BOT) and proposed fireworks ordinance changes. Staff reported that the BOT generates about $9 million annually, has not been substantially updated since 1991, and caps annual liability at $5,000. Committee members generally supported further study of a less regressive, potentially progressive structure, inflation indexing, and options to reduce impacts on small businesses, with broad stakeholder engagement. Staff will return with options and revenue projections; members expressed interest in preserving the option of a June 2026 ballot measure. No tax changes or spending approvals were adopted at this meeting.

The committee also considered proposed amendments to the fireworks ordinance intended to strengthen enforcement and align city rules with county rules. Amendments discussed would clarify that safety information is provided to purchasers, require temporary stands to be dismantled and litter cleared by July 14 (with stands removed by July 20), and remove a proposed June 1–July 14 limit on wholesale storage. Members discussed enforcement, penalties, public education, and possible use of technology; the chair asked that a general outline of an outreach plan be included when the proposal goes to the full council. No procurement activity was identified.