Notice of Ballot Measure

NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Hayward on Tuesday, November 3, 2026, at which time it will be submitted to the voters the following measure:

Ballot Measure Question

HAYWARD BUSINESS LICENSE TAX MODERNIZATION: Shall the measure updating the Hayward Business License Tax for the first time since 1978, to support general city services, including neighborhood police protection, firefighting, 911 response, libraries, and pothole repair, generating an additional $12 million annually until repealed, with a minimum tax of $60 and rates from $.30 to $3.75 per $1,000 of gross receipts, with higher rates for higher-grossing businesses, as stated in the ordinance, be adopted? 

Synopsis of the Measure

The November 3, 2026, proposed ballot measure would modernize the City’s Business License Tax structure for the time since 1978 by transitioning from a system of flat annual fees and employee counts toward a more progressive gross receipts-based framework. 

Full Text of Ballot Measure

• Exhibit A: Draft Ordinance Language

Staff Report

• June 2, 2026 City Council Staff Report: LB 26-001

Resolutions

• Signed Resolution 26-102 and Exhibit A
• Signed Resolution 26-103

Key Dates

Argument Information

NOTICE IS FURTHER GIVEN by the City Clerk, pursuant to Article 4, Chapter 3, Division 9, Sections 9280 through 9287 of the Elections Code of the State of California, that the following deadlines are hereby established as the final dates on which arguments and rebuttal arguments for and against the measure appearing on the ballot for the General Municipal Election to be held on November 3, 2026, may be submitted to the City Clerk for printing and distribution to the voters as required by law: 

Deadline for Filing Primary Arguments:  12:00 p.m., Monday, August 10, 2026 
Deadline for Filing Rebuttal Arguments: 12:00 p.m., Friday, August 14, 2026 

Primary Arguments, not to exceed 300 words in length, and Rebuttal Arguments, not to exceed 250 words in length, are to be submitted to the City Clerk, 777 B Street, Hayward, on or before deadlines. Submitted arguments are kept confidential until after the filing deadline. Arguments cannot be changed after the deadline. 

NOTICE IS FURTHER GIVEN that there shall be set a ten-calendar day examination period for public review of said Arguments.  During this time, any registered voter of the election jurisdiction, or the elections official, may seek a writ of mandate or an injunction requiring any or all of the materials to be amended or deleted.  The review period for Arguments is as follows: Primary Arguments commence August 10, 2026 and end August 20, 2026; Rebuttal Arguments commence August 14, 2024 and end August 24, 2026.  The review period for the Impartial Analysis commences on August 3, 2026 and ends August 13, 2026.

Information regarding the election and measure is available on the City’s website at https://www.hayward-ca.gov/your-government/elections.  For additional information call (510) 583-4400 or email cityclerk@hayward-ca.gov

The polls (vote centers) will be open between the hours of 7:00 a.m. to 8:00 p.m. on Election Day.

In accordance with California Elections Code Sections 9282, 9283, 9285, 9286:

Primary arguments for or against a ballot measure may not exceed 300 words.
Rebuttal arguments for or against a ballot measure may not exceed 250 words.

Word count will be determined using the standards outlined in Elections Code Section 9.

• Signature Statement Form
• Measure Endorsement Form

Impartial Analysis by the City Attorney

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

Argument in Favor of Ballot Measure CC

Vote YES on Measure CC to modernize the Hayward Business License Tax and protect essential services Hayward residents and families depend on every day. 

The Business License Tax, also known as the BLT, is what Hayward businesses pay each year to help fund the city services that make Hayward a great place to live, visit and do business in—police protection, firefighting, 911 emergency response, street and pothole repair, graffiti removal, library operations, affordable housing protection and preservation, and community programs and events. But the tax itself hasn’t changed in 48 years—since 1978, when disco was on the radio. It no longer reflects our modern economy and no longer raises enough revenue to keep pace with the true cost of providing these city services. 

Measure CC fixes this by modernizing the BLT to fairly capture today’s business sectors, generating an additional $12 million annually dedicated to city services. The structure is built on fairness: higher rates for higher-grossing, typically larger businesses, and lower rates for lower-grossing, typically smaller businesses—so mom-and-pop shops aren’t asked to shoulder the same burden as large corporations. 

Every dollar stays local, as the revenue raised can’t be taken by the state. And spending of the funds is subject to annual independent audits and is authorized through a public process as part of City budget-approval proceedings—ensuring transparency and accountability every step of the way. 

That’s why Hayward elected officials, small business owners, community and labor leaders, public safety professionals and affordable housing advocates all agree: Measure CC is a fiscally responsible, fair way to keep Hayward safe, clean and thriving. 

Join us. Vote YES on Measure CC. 

Sincerely, 

/s/ Ray Bonilla, Jr., Hayward City Councilmember  
/s/ Pearl Adre, Hayward resident and owner/operator of Pearl’s Café  
/s/ Toney Chaplin, Hayward resident and former Hayward Police Chief 
/s/ Andrew Ghali, President, Hayward Firefighters Local 1909 
/s/ Jose Carlos Montesinos, Hayward resident 

DATE: 8/4/2026

Argument Against Ballot Measure CC

Disclaimer: no argument was received against Ballot Measure CC.