Measure Y: Measure Y - City Of Berkeley - Initiative - Arts Tax Measure

In plain language

Measure Y would create a new city tax in Berkeley to pay for the arts. A YES vote sets up a tax on buildings, at 7 cents per square foot of building space, to fund grants for performing arts groups, art projects, festivals, and related costs, overseen by the city's Civic Arts Commission. The tax would last twelve years and is expected to raise about $6,300,000 a year, or $84,800,000 total. A NO vote means this new arts tax would not be created.

Fiscal impact

The tax would be $0.07 per square foot of building improvements, expected to raise about $6,300,000 per year and about $84,800,000 over its twelve-year duration.

Impartial analysis

This measure was placed on the ballot by an initiative petition signed by the requisite number of registered voters in the City of Berkeley. It requires a majority vote for passage. This measure would impose a special parcel tax to fund arts institutions and programs through grants. If adopted, the tax would be imposed starting January 1, 2027, at a rate of $0.07 per square foot of improvements on all properties, excluding properties (1) owned and occupied by low-income seniors or very low-income households; (2) owned by tax- exempt religious or educational organizations; (3) where at least 60% of units are designated affordable housing; or (4) that are transitional housing for people experiencing homelessness. The City estimates the tax would raise approximately $6,300,000 in the first year, and $84,800,000 over its 12-year duration. Proceeds would be placed into a special fund and allocated as follows: • 75% for performing arts organizations. Eligible organizations must demonstrate at least 3 consecutive years of providing live performances in Berkeley. The maximum grant would vary based on applicants’ annual operating expenses, but no more than $1,250,000. Funds could be used for operational and programmatic expenses such as wages, supplies and materials, and venue and equipment rentals, but not for long-term capital projects, fundraising or debt reduction. Applicants applying for awards greater than $100,000 must provide community benefits such as discounted programming. • 5% for individual artist projects or art organization operational and programmatic expenses. The maximum grant would be $7,500 for individual artists and $25,000 per year for organizations. Individual applicants must be at least 18 years old, Berkeley residents, and not applying as a partnership, group, or collective. Full-time students, City employees, or individuals producing a festival would be ineligible. • 10% for capital projects for arts organizations. The maximum grant would be $200,000 per project. Applicants must show they plan to acquire or construct a new asset, or improve or repair existing assets. Funds could not be used for regular programming or administrative costs unrelated to the capital project. • 5% for community festivals, including art fairs, cultural celebrations, or other limited-time events. The maximum grant would be $25,000 per festival. • 5% for grant program administrative costs. Requirements for eligibility and permissible uses of funds vary by program. Generally, organizational applicants must be Berkeley nonprofits. For-profit businesses and the City of Berkeley would be ineligible for grants and public or private school districts and organizations affiliated with the government or an educational institution such as the University of California would be ineligible for most grants. The City’s Civic Arts Commission would review and approve grant applications and adopt regulations to effectuate the purposes of the measure. Civic Arts Commission regulations and grant awards would be subject to City Council review and approval. The City Council would not be able to amend the measure without voter approval, but could fix technical errors, clarify the calculation of the tax, or adopt regulations by majority vote. /s/ Farimah Faiz Brown Berkeley City Attorney

Official ballot arguments

Filed for the official voter guide by each side, printed as submitted.

The official arguments will appear here once both sides’ arguments are on file.