DATE: June 2, 2026
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Title
Hayward Business License Tax: Adoption of Resolutions: (1) Establishing November 3, 2026, as the Date for an Election on a Proposed Ballot Measure Seeking Voter Approval of an Ordinance to Modernize the City of Hayward Business License Tax, (2) Requesting the Alameda County Board of Supervisors to Consolidate said Election with the Statewide General Election; (3) Establishing the Policy for Ballot Arguments for the Ballot Measure; and Finding that the Actions are Exempt from Environmental Review
End
RECOMMENDATION
Recommendation
That the City Council adopts the attached resolutions (Attachments II and IV) to:
1. Place a measure to modernize the City of Hayward Business License Tax Ordinance on the November 3, 2026, ballot,
2. Approve the proposed ballot question as it will appear on the ballot and the underlying ordinance to be enacted,
3. Request that the Alameda County Board of Supervisors consolidates the election for this measure with the established election on November 3, 2026,
4. Direct the City Attorney to develop an impartial analysis of the proposed measure,
5. Direct the City Clerk to conduct necessary activities related to this item,
6. Establish the policy for submitting ballot arguments,
7. Find that the actions are exempt from environmental review.
End
SUMMARY
The City of Hayward adopted its current Business License Tax (BLT) structure on July 11, 1978. The current tax structure is primarily based on flat annual fees applied by business categories, employee counts and limited gross receipt categories. Over time, changes in the local economy and business environments have prompted consideration of whether the structure reflects today’s business landscape. For example, newer industries such as data centers are not specifically captured in the City’s current rate categories.
At the January 20, 2026 work session on City revenue sources, Council gave direction to staff to explore modernizing the City’s BLT structure, including comparing Hayward to neighboring jurisdiction and conducting polling. On April 7, staff presented the results from public opinion polling, business engagement efforts, and a refined Business License Tax framework. At that meeting, Council directed staff to return with the legislative actions necessary to place the ballot measure at the November 3, 2026, election. The attached resolutions (Attachments II and IV) would formally place this measure on the ballot for voter consideration.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Establishing November 3, 2026 as Date for an Election
Attachment III Exhibit A to the Resolution Establishing Election Date
Attachment IV Resolution for Ballot Arguments
Attachment V Comparison of April 7 and June 2 Proposed BLT Frameworks