Newark voters will decide on Nov. 3 whether to throw out the business license tax the city adopted in 1970 and replace it with one based on how much money a business takes in. Measure DD, which the city calls the Newark Essential Services Protection Measure, would charge rates of up to 0.3% of gross receipts depending on the type of business. The ballot question says it would raise about $6.6 million a year. It needs a simple majority to pass. For every other November contest, see our Nov. 3, 2026 Bay Area election guide.

What Measure DD does

Newark has about 3,100 licensed businesses that together report more than $5 billion a year in gross receipts, but the current tax brings in only about $1.5 million a year, according to a July 9 city staff report. The city's tax consultant, HdL Companies, found the old ordinance figures the tax several different ways across more than 30 categories. Staff said the top 100 businesses produce 75% of gross receipts but pay only 47% of the tax.

The new ordinance would fold those categories into a few standard groups, each taxed as a share of gross receipts, with rates that vary by business type. Businesses taking in $100,000 or less a year would pay a flat $25 minimum. Today the threshold is $25,000 and the minimum is about $39. The tax would stay in place until voters end it, and the ballot language promises spending disclosure and independent audits. Because it is a general tax, the money can go to any city service, from streets and 911 response to police, fire and parks. The city's draft resolution says residents who don't own or run a business in Newark would not be affected.

Who pays more and who pays less

City staff say about half of Newark businesses would owe less than they do now. In the staff report's examples, a business with $25,000 in receipts would drop from about $39 to $25, and a small professional-services firm earning $100,000 or less would fall from about $130 to $25. Many retailers and restaurants would see little change or a small cut. Large professional-services, distribution and logistics companies would see the biggest increases.

Landlords and manufacturers drew the most debate. After the California Apartment Association objected, the council asked staff to lower the burden on rental property and raise it on manufacturing. Under that revised option, an apartment complex grossing $2.5 million a year would pay $1,825 instead of $1,186 today. Under the first draft it would have paid $5,425. A manufacturer grossing $15 million would go from $5,311 to $11,200. Nonprofit housing providers such as Eden Housing and Abode Services would stay exempt.

How it got on the ballot

The council voted 4 to 1 on July 23 to place the measure on the ballot, choosing a version that also trims the general retail rate and setting the revenue estimate at $6.6 million, Citizen Portal reported from the meeting record. Placing a general tax on the ballot takes a four-fifths council vote. The Bay East Association of Realtors raised concerns at a June outreach meeting that brokers and agents could both be taxed on the same commissions.

What a yes or no vote means

  • Yes: Newark switches to the gross-receipts business license tax, with a $25 minimum for businesses at or under $100,000 a year and rates up to 0.3%.
  • No: The 1970 tax structure stays as it is, bringing in about $1.5 million a year.

The official arguments for and against appear in the Alameda County voter information guide mailed to Newark voters.