Measure BL

In plain language

Measure BL would update and simplify Hawaiian Gardens' business license tax to help pay for city services like public safety, street work, and parks and recreation. Most businesses would pay a $50 flat fee plus $0.95 per $1,000 of income above $30,000, while contractors would pay a $175 flat fee. A YES vote adopts this new tax structure, which would continue until voters end it. A NO vote keeps the current business license tax rules.

Fiscal impact

A maximum annual $50 flat rate plus $0.95 per $1,000 of gross receipts above $30,000 for most businesses, and a $175 flat rate for contractors, raising about $563,810 until ended by voters.

Impartial analysis

CITY OF HAWAIIAN GARDENS CITY ATTORNEY’S IMPARTIAL ANALYSIS OF MEASURE BL ADJUSTING THE RATES OF BUSINESS LICENSE TAXES WITHIN THE CITY AND MAKING OTHER TECHNICAL UPDATES For decades, the City of Hawaiian Gardens has levied a license tax on business es operating within the City. The business license tax is a general tax. Revenues are deposited into the General Fund and may be spent for any City expense, like public safety, street operations and maintenance, and parks and recreation services. The existing tax structure was last updated in 1993. The City currently imposes the license tax based upon a variety of formulas, including flat rates , number of employees and gross receipts for over 30 specific categories of business. On July 22, 2026, the City Council unanimously placed Measure BL on the November 3, 2026 ballot. If approved by majority (50%+1) of Hawaiian Gardens voters, this Measure would update and simplify the City’s tax rate structure by significantly reducing the number of business categories and implementing a flat annual rate and gross receipts model for most businesses and a flat annual rate for contractors . This is intended to better align with the current types and distribution of businesses located within the City . The annual rates would be as follows: • Contractor: $175 flat rate; • Any other taxable business : $50 flat rate plus $0.95 per $1,000 of gross receipts earned by the business above $30,000; and • Tax exempt business: No tax due. “Contractor” is defined as any business that performs work in the City requiring a license under the California Contractors State License Law, including construction, reconstruction, demolition, remodeling, repair or maintenance work, or the development, improvement, alteration, or excavation of land. “Contractor” excludes any business with a professional license such as engineers, architects, land surveyors, construction managers, or environmental consultants. Measure BL would make no changes to tax exempt businesses. The following businesses would continue to be exempt from the tax: (i) Qualifying not -for-profit institutions and organizations, including religious, charitable, fraternal, educational, military, State, County or municipal associations, where the receipts are used for not -for-profit purposes, (ii) Public utilities or privately-owned public utilities holding a City franchise to operate, (iii) Emergency aid services, and (iv) Card clubs licensed by the City under Chapter 5.92 of the Municipal Code. Measure BL provides that there will be no p ro-ration of the annual tax during the license year. The Measure also updates definitions and other technical provisions. This tax is estimated to generate $450,000 annually. The new rates would become effective on January 1, 2027 and remain in effect until repealed by voters at a subsequent election. A “yes” vote on Measure BL will approve this amendment to the City’s business license tax code. A “ no” vote on Measure BL will not approve this amendment to the City’s business license tax code. The above statement is an impartial analysis of Measure BL. If you desire a copy of the Measure, please call the City’s elections official at [phone number omitted] and a copy will be mailed at no cost to you. /s/ NORMA TABARES 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.