Measure CC: Measure CC - City Of Hayward - Business Tax Measure

In plain language

Measure CC updates Hayward's business license tax, which has not changed since 1978. A YES vote sets new tax rates from $0.30 to $3.75 per $1,000 of a business's gross receipts, with a minimum tax of $60, charging higher-grossing businesses more. The money would fund city services like police, firefighting, 911 response, libraries, and pothole repair, raising about $12 million more a year until voters end it. A NO vote would keep the current 1978 tax rates.

Fiscal impact

New rates would range from $0.30 to $3.75 per $1,000 of gross receipts, with a minimum tax of $60, expected to generate an additional $12 million annually until repealed by voters.

Impartial analysis

Like other California cities, the City of Hayward('City') requires that any person or entity conducting business in the City pay a business license tax('BLT'). It is not a tax on residents, consumers, or users who are not business owners or operators. The City has not updated its BLT since 1978; consequently, the Hayward City Council has placed a Measure on the November 3, 2026 ballot asking voters to update relevant provisions of the Hayward Municipal Code. This is a general tax which means the City may use the revenues for any governmental purpose. If adopted by voters, an estimated additional $12 million will be generated to support City services, including neighborhood police protection, firefighting, 911 response, libraries, and street improvements. Funds can only be used for Hayward programs and services and cannot be taken away by the State or Federal governments. A YES vote would update and amend the City's BLT fee schedule. The ordinance would go into effect in January, 2027. A simple majority of voters (50% + one vote) is required to adopt the Measure. A NO vote means the 1978 fee schedule would remain in place. The proposed BLT would transition the City towards a more progressive gross-receipts­based structure with higher rates for higher-grossing larger businesses, and lower rates for lower-grossing smaller businesses. The current structure relies primarily on flat fees and employee counts. The proposed structure establishes gross receipts brackets for most classifications using the following thresholds: Up to $5 million $5 million to $10 million $10 million to $25 million $25 million to $50 million Over $50 million Other key elements include: A minimum tax payment of $60 for all businesses, assuring a baseline contribution across all business types. Tiered gross receipts rates ranging from $.30 to $3.75 per $1,000 of annual gross receipts, with higher rates applied to businesses with higher gross receipts. An alternative payroll tax payment of$. 70 per $1,000 of payroll, for businesses that do not report gross receipts in Hayward but have employees working within the City. This ensures that businesses benefitting from operating in Hayward contribute to City services, even if their revenue is generated elsewhere. Authority for the Tax Administrator to determine apportionment of gross receipts attributable to business activity occurring within the City. The proposed BLT includes updated definitions and classifications related to retail sales, data centers, wholesale sales, transportation and warehousing, manufacturing, business and personal services, professional /semi-professional services, construction contractors, hotels and motels, and residential and non-residential rentals, and other business types to reflect modern business activity. The proposed BLT closely aligns with surrounding jurisdictions that have updated their business license tax programs in recent years. The proposed BLT would not result in increased taxes for Hayward residents and would only apply to businesses within the City. The Hayward City Council directed this Measure to be placed on the ballot at the General Municipal Election to be held on November 3, 2026. Respectfully Submitted, DATED: August 3, 2026 /s/ Michael Lawson, 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.