Hayward's Measure CC Would Rewrite a 1978 Business Tax. Here's What Changes for Local Businesses

Hayward voters will decide on Nov. 3 whether to overhaul how the city taxes businesses for the first time in nearly half a century. Measure CC would replace the Business License Tax the city adopted on July 11, 1978, whose structure and rates have not been changed since, according to the City of Hayward.

How the tax works now

Today's tax is mostly built on flat annual fees by business category, employee counts and a few gross receipts categories. A June 2 staff report to the City Council noted that newer industries, such as data centers, do not even have their own category under the current rules. The council voted unanimously that day to put the update on the ballot.

What Measure CC would do

The measure moves most businesses to a tax based on gross receipts, meaning total revenue earned in Hayward. Every business would pay at least $60 a year. Above that, rates would range from $0.30 to $3.75 per $1,000 of gross receipts, rising as a business's revenue climbs past brackets at $5 million, $10 million, $25 million and $50 million. The city describes this as a more progressive setup, with lower rates for smaller businesses and higher rates for larger ones.

Rates also vary by industry. Under the schedule the city published, retailers and grocers would start at $0.30 per $1,000, contractors and wholesale or warehouse businesses at $0.50, professional services at $1.50, and commercial rental property at a flat $3.75. Businesses that have employees working in Hayward but do not report gross receipts there would pay an alternative tax of $0.70 per $1,000 of payroll.

Where the money goes

The city estimates the change would bring in about $12 million more each year. Because it is a general tax, the money goes into the general fund. The ballot question lists neighborhood police protection, firefighting, 911 response, libraries and pothole repair among the services it would support. The tax would stay in place until repealed, and it needs a simple majority to pass, according to Ballotpedia.

The city's own estimates show the total base tax collected across roughly 14,500 businesses rising from about $3.6 million under the current structure to about $15.6 million under the proposal.

Business owners who want to estimate their own bill can find the full rate table on the city's Measure CC page.