In so doing, the Council also approved a resolution calling for the drafting of a ballot argument to be included in the Alameda County Voter Information Guide for the Nov. 3 election explaining the BLT and the importance of updating the tax.
What is the Hayward Business License Tax?
The Hayward Business License Tax is an annual fee paid by businesses that are registered to operate in Hayward. The amount paid is based on a flat rate applied by business category, a business’s total number of employees or its level of gross receipts.
How is Business License Tax revenue used by the City?
The Hayward Business License Tax is a general tax. It raises revenue that goes into the City General Fund to support general city services, including police protection, firefighting, 911 response, library operations, pothole repair, maintenance and graffiti cleanup. Spending of BLT revenue is approved annually following a public hearing as part of the City’s General Fund budget and the funding cannot be taken by the state for other purposes.
Why does the City Council want to update the Business License Tax?
The current Hayward Business License Tax was established on July 11, 1978. Its structure and rates haven’t been amended in the past 48 years to keep up with changes in the local economy and business environment or the cost of delivering generally municipal services.
How would the proposed ordinance change the Business License Tax?
The proposed ordinance would transition the City toward a more progressive gross-receipts-based structure with higher BLT rates for higher-grossing, usually larger businesses and lower rates for lower-grossing, usually smaller businesses.
How was Business License Tax modernization ordinance developed?
The proposed ordinance to modernize the Hayward BLT was developed by an interdepartmental team of City staff who were assisted by outside consultants and legal professionals with experience helping other municipalities update their business license taxes. The City also consulted with and received input from the Hayward business community and labor unions representing City workers.
Why is it up to Hayward voters to approve a Business License Tax update?
Beginning in 1978, the constitution of the State of California has required that local government tax increases be approved by local voters. The proposed Hayward Business License Tax modernization ordinance that will appear on the Nov. 3, 2026, ballot would establish new business categories and higher rates for certain categories. In total, the proposed update would increase annual BLT revenue by approximately $12 million.
What is the wording of the question that will appear on Nov. 3, 2026, ballot?
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 rate 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?
Who can I contact with questions, to provide input and to get more information?
Individuals who would like to ask questions, provide or learn more about the proposal to modernize the Hayward Business License Tax can contact the Office of the City Manager at (510) 583-4300 or email HaywardBLT@hayward-ca.gov.
Additional Information
Sources of General Fund Revenue
Fiscal Year 26-27 General Fund Revenue: $249,085,224 Chart Key:
- Transfers In: 12.6%
- Property Tax: 32.6%
- Real Property Transfer Tax: 4.4%
- Sales Tax: 18.7%
- Utility Users Tax: 10.5%
- Franchise Fees: 5.6%
- Business License Tax: 1.5%
- Other Taxes: 3.9%
- Charges for Service: 5.8%
- Other & Interest: 1.6%
- Intergovernmental: 3%
- Fines: 1.5%
Where the money goes
Fiscal Year 26-27 General Fund Expenditures: $249,084,593 Chart Key:
- City Attorney: 0.83%
- City Clerk: 0.65%
- City Manager: 2.6%
- Development Services: 5.3%
- Finance: 2.7%
- Fire: 28.5%
- Human Resources: 1.6%
- Library: 3.9%
- Maintenance Service: 3.4%
- Mayor & City Council: 0.3%
- Non-departmental & Transfers: 5.5%
- Police: 43.9%
- Public Works & Utilities: 1%
How industry and rate categories would change
Proposed Rates Brackets |
Tax Revenue | Average Eff. Tax Rate | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Tax Category | Payers | Gross Receipts (2026) | Min. Tax | $0M - $5M | >$5M - $10M | >$10M - $25M | >$25M - $50M | $50M + | Current Rate | Proposed Rate | Current Rate | Proposed Rate |
Retail Sales | 1,341 | $2,917,255,148 | $60 | $0.30 | $0.40 | $0.50 | $0.75 | $1.00 | $694,021 | $1,742,255 | $0.24 | $0.60 |
Grocers | 58 | $311,466,346 | $60 | $0.30 | $0.40 | $0.50 | $0.75 | $1.00 | $36,695 | $136,839 | $0.12 | $0.44 |
Automotive Sale | 103 | $671,723,379 | $60 | $0.30 | $0.40 | $0.50 | $0.75 | $1.00 | $71,859 | $454,177 | $0.11 | $0.68 |
Wholesale Trade/Warehouse | 701 | $4,646,990,288 | $60 | $0.50 | $0.60 | $0.70 | $0.80 | $1.00 | $549,313 | $3,235,516 | $0.12 | $0.70 |
Manufacturing (Value Add) | 365 | $1,474,924,344 | $60 | $0.60 | $0.80 | $0.90 | $1.00 | $1.10 | $390,021 | $1,323,451 | $0.26 | $0.90 |
Business/Personal Svcs | 1,537 | $920,476,690 | $60 | $0.50 | $1.00 | $1.25 | $1.50 | $1.75 | $169,286 | $716,308 | $0.18 | $0.78 |
Professional Svcs | 1,376 | $1,419,045,992 | $60 | $1.50 | $1.50 | $1.50 | $1.50 | $1.75 | $1,027,473 | $2,264,055 | $0.72 | $1.60 |
Contractors | 2,107 | $700,214,941 | $60 | $0.50 | $0.90 | $1.15 | $1.25 | $1.50 | $191,275 | $400,589 | $0.27 | $0.57 |
Hotel/Motel | 19 | $28,944,004 | $60 | $0.30 | $0.40 | $0.50 | $0.60 | $1.00 | $8,282 | $9,125 | $0.29 | $0.32 |
Utility Companies | 8 | $415,146,245 | $60 | $0.30 | $0.40 | $0.50 | $0.75 | $1.00 | $1,075 | $394,896 | $0.01 | $0.95 |
Trucking Transportation | 320 | $576,448,601 | $60 | $0.50 | $0.60 | $0.70 | $0.80 | $1.00 | $111,582 | $364,440 | $0.19 | $0.63 |
Data Centers | 6 | $34,574,216 | $60 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $2,359 | $103,769 | $0.07 | $3.00 |
Misc. | 44 | $17,208,925 | $60 | $1.50 | $2.00 | $2.50 | $2.50 | $2.50 | $3,481 | $28,299 | $0.20 | $1.64 |
Commercial Rental Property | 1,107 | $740,542,575 | $60 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 | $221,232 | $2,792,953 | $0.30 | $3.77 |
Residential Rental Property (4+ Units) | 515 | $282,637,889 | $60 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 | $86,982 | $1,063,845 | $0.31 | $3.76 |
Residential Rentals (1-3 Units) | 4,858 | $154,719,415 | $60 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 | $0 | $580,198 | $0.00 | $3.75 |
| Total | 14,466 | $15,042,736,931 | Total Estimate Base Taxes (excluding penalties) | $3,564,937 | $15,610,804 | $0.24 | $1.04 | |||||
| Estimated Penalties | $95,866 | $419,016 | ||||||||||
| Total Estimated Business Tax Revenue | $3,660,804 | $16,029,820 | ||||||||||
Legislative History
Feb. 28, 2026: The City Council held a public budget work session that included discussion of a potential ballot measure to update the Hayward Business License Tax. The work session staff report, associated documents and a video recording of the work session are available on the City of Hayward legislative website.
April 7, 2026: The City Council held a public work session on a proposed update to the Hayward Business License Tax that reflected changes in the local economy and business environment and in the cost of delivering municipal services since the tax was last updated in1978. The work session staff report, and a video recording of the work session are available on the City of Hayward legislative website.
June 2, 2026: The City Council voted unanimously to place a measure on the Nov. 3, 2026, ballot seeking Hayward voter approval of an ordinance updating the City’s Business License Tax. The staff report, associated documents and a video recording of the deliberations and vote are available on the City of Hayward legislative website.
Hayward Election Information
For more information on the Nov. 3, 2026, election in Hayward, including candidates for office and how to register to vote, visit the Elections Page on the City of Hayward website.
Apply for or renew a Hayward Business License
For information on how to apply for or renew a Hayward Business License, visit the Business License Application page on the City of Hayward website.
