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Hayward council approves putting modernized business license tax on Nov. 3 ballot
Summary
Council voted unanimously to place a modernized, progressive gross‑receipts business license tax measure on the November 3, 2026 ballot; staff project about $16 million per year in revenue and will run a neutral education campaign before the election.
The Hayward City Council on June 2 approved resolutions to place a modernization of the city’s business license tax on the November 3, 2026 general election ballot, advancing a progressive gross‑receipts structure that staff estimate would raise about $16 million annually.
Management analyst Anas Perez and consultant Matt Newman presented a framework that updates a tax structure that the staff said has not been revised since 1978. The proposal adds progressive gross‑receipts brackets — including a new top tier for firms with more than $50 million — and raises certain rental categories; staff estimated net new revenue of roughly $12.3 million above current receipts, for a total near $16 million depending on final rates and economic conditions.
Newman compared the proposed rates to neighboring jurisdictions and reported that the revised Hayward proposal would put the city near peer measures planned or under consideration in San Leandro and Newark. Perez described outreach and polling work since January and said staff will run a neutral public education campaign between approval and the election to explain the new framework to the business community and voters.
Council discussion covered the ballot‑label word limit (staff said the city is near the permitted word cap for the ballot description), why staff chose a single‑step modernization rather than a phased rollout (staff argued that a phased approach would complicate business planning and reduce near‑term revenue when the city faces structural shortfalls), and next steps for implementation if voters approve the measure. Council nominated Councilmember Bonilla to author the official affirmative argument and approved the resolutions that set the election date, request consolidation with Alameda County, and adopt the ballot question and ordinance language.
The motions passed unanimously; if voters approve the measure in November, staff said they would return to council in December with budget work‑session guidance on allocating and forecasting the new revenue.
What happens next: neutral voter education and outreach through September, legal deadlines for ballot filings, and a return to council in December to detail how any new revenue would be used.
