Measure X: Measure X – City of Benicia – Benicia Business License Modernization

In plain language

Measure X would create a new Business License Tax in the City of Benicia. A YES vote adds the tax, which would not apply to businesses making $100,000 or less a year. Tax rates would range from $0.25 to $1.25 per $1,000 of business receipts, depending on the type of business, with a separate rate of $3 per $100 of receipts for the Marine Terminal. First-year taxes would be capped at $1,500, rising 10% a year until the cap reaches $25,000. A NO vote means the tax is not added. The tax would stay in place until voters repeal it.

Fiscal impact

The tax is expected to generate about $1,612,000 in its first year.

Impartial analysis

CITY ATTORNEY’S IMPARTIAL ANALYSIS MEASURE X Like other California cities, the City of Benicia (City) requires that, generally, any person or entity conducting business in the City pay a business license tax (BLT) to the City. It is not a tax on residents, consumers, or users who are not business owners or operators. The Benicia City Council has placed a Measure on the November 3, 2026 ballot, asking voters to adopt an ordinance to amend Chapters 5.04 and 5.06 of the Benicia Municipal Code. For most businesses, the City's current BLT is the sum of three components: a personnel tax of $7.50 per person employed or compensated (prorated below 2,000 hours); a multifamily residential rental tax of $36.00 per rental unit, with exemptions for small buildings and units occupied by seniors or lower-income households; and a gross receipts tax at tiered rates of $0.75, $0.65, or $0.55 per $1,000 depending on business type, subject to per-business minimums and a $450.00 annual maximum. Solicitors, farmer's market vendors, and fair participants instead pay a flat $15.00 alternate tax. Other than the rates on gross receipts which are fixed under the current ordinance, these dollar amounts are adjusted annually for inflation. Effective January 1, 2027 the proposed ordinance would tax gross receipts at the following annual BLT rates, applied per $1,000 of gross receipts: • $0.25 per $1,000 for General and Retail businesses. • $0.75 per $1,000 for Contractors. • $0.75 per $1,000 for Services businesses. • $1.00 per $1,000 for Industrial businesses. • $1.00 per $1,000 for Professional businesses. • $1.00 per $1,000 for Property Rental businesses. • $1.25 per $1,000 for Petroleum businesses Under the proposed ordinance, each business with less than $100,000 in gross receipts would be exempt from the BLT, and each business would have an annual maximum license tax of $25,000. The maximum license tax would be initially set at $1,500, and increased 10% each year until reaching $25,000 per year. The proposed ordinance also establishes a separate BLT on marine terminal businesses in the City at a rate of 3 percent of gross receipts, and the marine terminal tax is not subject to the maximum license tax. First-year revenue under this structure is estimated to be approximately $1,612,000. The BLT is a general tax since the revenue will continue to be placed in the City’s General Fund and may be used for any general municipal purposes. Therefore, Measure X will not be effective in amending the BLT until approved by a majority of City voters voting in the election. A “yes” vote is a vote in favor of the tax. A “no” vote is a vote against the tax. Submitted August 11, 2026 Benjamin Stock 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.