Keeping Newark Safe and Clean | Updating Newark’s Business License Ordinance

Newark requires all businesses operating in the City to obtain a business license and pay an associated annual tax that can be used to help support the roads, infrastructure, and services used by local businesses. This tax does not apply to Newark residents who do not own or operate a business in Newark. The business license tax currently provides approximately $1.5 million annually to help maintain city services including street and pothole repair, keeping parks and neighborhoods safe and clean, and maintaining rapid 9-1-1 emergency response, fire protection, and neighborhood police patrols.

Newark’s current business license tax has not been updated in 56 years, and the local economy, industries, and workforce have changed significantly in that time. To ensure that large businesses pay an appropriate share of the cost for the roads, infrastructure, and services they use and to protect small businesses from increased costs, Newark is looking to modernize and simplify the current business license tax. This would also generate additional locally controlled revenue for city services. Any adjustments to the business license tax require local voter approval.

To help ensure Newark’s business license tax is equitable, fair, and to reduce costs for most small businesses, the City Council is considering placing a measure on the November 3, 2026, ballot to modernize and simplify the business license tax. The proposed changes are designed to decrease the cost for most small businesses, attract, retain, and encourage business growth and job creation in Newark, and simplify oversight and compliance. The measure would generate approximately $5.4 million in annual funding for local city services, such as:

• Repairing potholes and city streets
• Reducing blight and keeping neighborhoods safe and clean
• Maintaining rapid 9-1-1 and emergency medical response and fire protection services
• Maintaining parks and recreation programs
• Preparing for emergencies like an earthquake or flooding
• Maintaining neighborhood police patrols

The proposed measure would require fiscal accountability protections to help ensure funds are spent as promised, including:

• Required public disclosure of all spending, an independent oversight committee, and mandatory annual audits
• No funds may be taken away by the state or federal governments
• All funds must stay local for local services and infrastructure
• No taxes on Newark residents who do not own or operate a business in Newark

As Newark plans to update, simplify, and modernize local revenue sources that support city services, all residents are encouraged to stay informed and share your priorities and feedback. If you have questions or input, please email businesslicensetax@newarkca.gov.