Benicia voters will decide three linked tax measures on Tuesday, Nov. 3, 2026. Measure X would rewrite the city's business license tax. Measure Y would make Benicia a charter city for one purpose only: allowing Measure Z, a real property transfer tax aimed mostly at newly built homes and sales over $2 million. Each needs a simple majority. Voters will also fill two City Council seats; the city has posted candidate statements from Kari Birdseye, Terry Scott and Justin Zollars.

The backdrop is the planned closure of the Valero Benicia Refinery in April 2027. The city's Measure Z resolution says the refinery site, more than 900 acres, is expected to be redeveloped and could include about 3,500 homes, on top of 527 acres of other private land planned for more than 1,600 homes.

Measure X: business license tax

Measure X replaces the current business license tax rules with rates set by type of business, charged per $1,000 of gross receipts:

  • $0.25 for general and retail businesses, including restaurants and grocers.
  • $0.75 for contractors and service businesses such as salons and dry cleaners.
  • $1.00 for industrial, professional and property rental businesses.
  • $1.25 for petroleum businesses.
  • $3 per $100 (equal to $30 per $1,000) for marine terminals, with no cap.

Businesses with $100,000 or less in yearly receipts would be exempt, as would 501(c)(3) nonprofits. For everyone except marine terminals, the most a business would pay is $1,500 a year at first. That cap rises 10% every Jan. 1 starting in 2028 until it reaches $25,000. The city estimates about $1,612,000 in the first year, and the money goes to the general fund. The council voted 5-0 on July 21 to put it on the ballot. The council could later lower or suspend the tax, but raising it would need another public vote.

Measures Y and Z: limited charter and transfer tax

Under the California Constitution, only a charter city can set its own transfer tax rates, so the city says Measure Y is legally needed for Measure Z. The charter would cover only the transfer tax and no other powers. The two measures are meant to work together.

Measure Z would add a city tax, on top of the existing county transfer tax, when property sells:

  • $4 per $1,000 on sales of $2 million or less. On a $1 million newly built home, that works out to $4,000.
  • $6 per $1,000 on sales over $2 million up to $10 million.
  • $8 per $1,000 on sales over $10 million.

Homes built before Jan. 1, 2027, that sell for $2 million or less would be exempt. So would transfers within families, deed-restricted affordable units and foreclosures. Buyer and seller are jointly liable and can split the bill. The city projects about $230,000 a year at first for the general fund, with annual audits and a citizens oversight committee. The council voted 4-1 on Aug. 4, with Council Member Lionel Largaespada voting no.

Arguments

The city's election page lists arguments for and against Measures Y and Z, with rebuttals. For Measure X it lists only an argument in favor, which the council authorized its five members to write.

More Solano County ballot guides: Solano County Measure E and Fairfield, Vacaville and Rio Vista sales tax measures. See every race on the Bay Area Brief Election 2026 hub.