The City Council of the City of Newark is submitting to the voters the question of whether to approve an ordinance that would repeal and replace the existing business license tax codified in Newark Municipal Code Chapter 5.04. 

The City imposes a business license tax on businesses conducting business within the City. The current business license tax sorts businesses into multiple categories based on business type. Currently, the tax is a flat tax, a tax based on number of employees, a tax based on number of vehicles, a tax based on a percentage of payroll or a tax based on a percentage of gross receipts, depending on the category. 

If approved, Measure DD would amend the business license tax to consolidate the existing categories into seven categories, with all business types paying a tax based on a percentage of gross receipts, with the rate depending on the category. Measure DD includes a business license tax exemption category for various activities, including activities by not-for-profit entities. 

If approved, Measure DD would establish the following business categories and tax rates, which are percentages of a business’s annual gross receipts: General Retail and Restaurants – 0.0003; Professional Services – 0.0025; Contractors and Services – 0.002; Rental (Commercial and Residential), Self-Storage, Hotels, Motels and Short-Term Rentals – 0.00075; Manufacturing, Wholesaling and Importing/Exporting of Goods – 0.00075; and Distribution and Logistics – 0.003. Businesses are required to pay a minimum tax amount irrespective of gross receipts. Measure DD would change the minimum tax paid by all categories from a flat amount of $39 to a flat amount of $25 on the first $100,000 of gross receipts, which would result in a tax reduction for some businesses.  

Measure DD would provide that the repeal and replacement of the business license tax would be implemented on January 1, 2027. The business license tax would continue to be ongoing if Measure DD is approved. 

Because Measure DD does not limit the use of business license tax revenue, it is a “general tax,” and the funds provided are available for any legitimate governmental purpose. As noted in the ballot question, examples of uses of revenue from the business license tax include street and pothole repairs, keeping neighborhoods safe and clean, and maintaining 9-1-1 emergency response, fire protection, neighborhood police patrols, parks and recreation programs. Measure DD would generate approximately $6.6 million in funds annually that are legally required to be used in Newark to support city services. 

A “Yes” vote is a vote to approve adopting an ordinance that would repeal and replace the existing business license tax. A “No” vote is a vote against adopting the ordinance. Measure __ will be approved if it receives a simple majority of “Yes” votes from those voting on the Measure. 

DATED: August 5, 2026
Kristopher J. Kokotaylo, City Attorney 

Vote Yes on Measure DD to protect essential city services without increasing taxes on Newark residents. 

All businesses operating in Newark must obtain a business license and pay an annual tax to pay their fair share for roads, infrastructure, and services they use.  

Newark’s current business license tax has not been updated in 56 years and the local economy has changed significantly in that time. Some small businesses are taxed on a higher percentage of their revenue than larger businesses. 

Voting Yes on Measure DD updates and simplifies Newark’s business license tax to ensure large businesses pay their fair share for roads, infrastructure, and public safety services. Measure_ also reduces taxes for small businesses. 

Measure DD only impacts businesses and does not increase taxes on local residents who do not own a business in Newark. 

Voting Yes on Measure DD ensures first responders respond quickly to 9-1-1 emergencies. In an accident, disaster or medical emergency, seconds are the difference between life and death.  

Measure DD will repair potholes and maintain streets before they deteriorate, forcing more expensive reconstruction later. 

Voting Yes on DD will: 

* Repair potholes and city streets 
* Reduce blight and keeping neighborhoods safe and clean  
* Maintain rapid 9-1-1 and emergency medical response and fire protection services 
* Maintain parks and recreation programs 
* Prepare for emergencies like an earthquake or flooding 
* Maintain neighborhood police patrols 

Measure DD requires strict fiscal accountability and local control: 

* Public disclosure of all spending, an independent oversight committee, and annual audits 
* No funds can be taken away by the state or federal governments 
* All funds must stay local  

Please join Newark’s firefighters, police officers, small business owners, elected leaders, and longtime residents in voting YES on DD to protect essential services without increasing taxes on residents. 

Maria “Sucy” Collazo 
Mexico Tortilla Factory, Owner 

Ernie Morua  
Retired Newark Firefighter 

Rahul Sharma 
Business Owner 

Steven Losier 
Newark Police Officers Association, President 

Lily Mei
Newark Chamber of Commerce, President & CEO 

The City Council voted to place a 465% increase in the Business License Tax on the ballot. This represents a $5 million increase in taxation. I am a member of the Newark City Council, and I was the only councilmember to vote against it because I believe it would undermine the economic health of our community. 

While it is true that our city needs revenue to provide quality services, safe neighborhoods, and well-maintained streets and parks, this tax increase would hinder economic growth and ultimately constrain future revenue. It would place an additional financial burden on local businesses at a time when many are already struggling with rising costs for supplies, rent, utilities, wages, insurance, and federal tariffs. As a result, businesses may be forced to raise prices to offset the increased tax burden. 

This tax increase would harm our business community, slow job growth, raise prices, and make it more difficult to retain existing businesses and attract new ones to Newark. A healthy local economy benefits everyone. Policies that increase the cost of doing business risk slowing economic growth and making it harder for businesses to thrive. 

Supporters of this tax increase promise new revenue for important city priorities, but this measure is a general tax and does not guarantee that the funds will be spent on the purposes described in the ballot measure. Instead, the revenue could be used for any governmental purpose. 

There are better ways to strengthen the city's finances without placing additional burdens on local employers and residents. For example, encouraging business growth and resolving the challenges at NewPark Mall could help generate additional revenue without raising tax rates. 

For these reasons, I urge you to vote NO on this Business License Tax increase. 

Terrence Grindall 
City Council Member 

The argument for this tax increase is deceptive and inaccurate. 

This $5.5 million (465%) tax increase would harm Newark. It is counterproductive and unfair, and the money could be used without restrictions. Please vote NO on Measure DD.  

Resources for roads, public safety and emergency response can be best assured by supporting small businesses and attracting new businesses—not by squeezing Newark businesses. The best way to increase revenue is to grow our economy, not raise taxes. 

The argument in favor, and the measure title of this tax increase implies that the funds would be used for specific purposes. This is untrue. This would be a general tax, meaning the funds can be used for any legal purpose the City Council chooses-including City Council compensation and/or executive salaries. 

The argument also states that the money must be spent locally. This statement is inaccurate. This tax revenue can be spent for any legal purpose the City Council authorizes, including purposes outside Newark. 

This tax increase would hurt Newark businesses and ultimately be passed on to residents through higher prices. 

Such a large tax increase would harm Newark’s economy and residents. It is counterproductive and unfair, and it would give the City Council greater control over funds that could be spent for virtually any legal purpose rather than defined priorities. 

Please vote NO on Measure DD.  

TERRENCE GRINDALL  
Newark City Council Member 

Before believing the opponent’s argument, consider this simple question:  

If Measure_ would hurt local businesses, why do the Newark Chamber of Commerce and local small business owners SUPPORT it? 
 
The opponent's argument relies on a misleading statistic that fundamentally misrepresents how Measure_ actually impacts Newark businesses. 

Here are the facts: 

* According to independent expert analysis, 68% of Newark businesses — almost entirely small businesses — will pay LOWER annual business license taxes if Measure_ is approved. 

* 87% of retail businesses — our local shops, restaurants, and cafés — would pay LOWER business license taxes. 

* Under Newark's outdated 56-year-old business license tax, many small businesses pay a higher percentage of their revenue than much larger businesses. Measure DD corrects this inequity. 

* Measure DD lowers taxes for most small businesses while ensuring larger businesses pay their fair share for the roads, infrastructure, and city services every business depend upon. 

* Measure DD requires strict fiscal accountability, including public spending disclosure, an independent oversight committee, mandatory annual audits, and local control so every dollar stays in Newark for local services.  

The opponent offers no realistic alternative for fixing Newark's outdated and unfair business license tax — or for protecting rapid 9-1-1 emergency response, police and fire protection, repairing streets, maintaining parks, and keeping neighborhoods safe and clean. 

Yes on DD lowers taxes for small businesses. 

Yes on DD ensures larger businesses pay their fair share. 

Yes on DD protects essential city services without increasing taxes on residents.  

Join Newark’s Mayor, City Council majority, small businesses, police officers, and firefighters and vote Yes on DD. 

s/Michael K. Hannon 
   Mayor 

s/ALAN L. NAGY 
  Former Mayor and Council Member (43 years) 

s/MARIA “SUCY” COLLAZO 
  Business Owner/Former Council Member (12  

s/LUIS L. FREITAS 
   Former Council Member (29 years) 

s/LILY MEI 
   President & CEO of Newark Chamber of Commerce