Council directs staff to place modernized business license tax measure on Nov. 3 ballot with reduced-retail rate

The Newark City Council directed staff to place a modernized business license tax (BLT) measure on the Nov. 3, 2026 consolidated ballot, adopting a staff resolution with an amendment to use the reduced-retail alternative and to list estimated annual revenue as $6,600,000.

Staff outlined two models: the July 9 model with a general-retail rate of 0.043 and a reduced-retail alternative with a 0.030 general-retail rate designed to be revenue-neutral for retail businesses. City staff and tax consultant Eric Myers explained the ordinance taxes taxable activity occurring in Newark and that the proposed ordinance measures that activity by gross receipts or, where appropriate, cost of operations. "What the city can tax is the taxable activity that happens in the city as measured by the gross receipts in this proposal," Myers said.

The council debated retailer impacts versus city revenue needs; Vice Mayor Jorgensen and other councilmembers favored the reduced-retail alternative to lessen the burden on low-margin retailers. Lily May of the Newark Chamber of Commerce urged the council to modernize the ordinance and praised the staff process. Vice Mayor Jorgensen moved to adopt staff's recommendation with the reduced retail rate and amend the ballot question to $6,600,000; the motion passed 4–1 on a voice vote. The council also designated the mayor to submit the official ballot argument and rebuttal according to the state schedule.