Should Hayward voters approve Measure CC? (November 3, 2026 ballot)

What's this about?

People disagree about whether Hayward voters should approve Measure CC on November 3, 2026.

The measure would change how local businesses pay the city.

What supporters say

• Measure CC could bring about $12 million each year for city needs.
• The city could use this money for police, fire help, roads, libraries, and code checks.
• The new tax plan would ask for more money from larger businesses than the old plan.
• The plan would replace flat fees and fees based on worker counts.

What critics say

• A tax on sales money could build up as goods move through many businesses.
• Local taxes may affect where companies choose to open or move.
• Sales money is not the same as profit, so a business with small profits may still owe much tax.

How to read this

The number of points on each side does not show who is right; strong proof matters more.

Measure CC would update Hayward’s business license tax and is on the November 3, 2026, ballot. The choice is between a new source of city funding and concerns about how a tax based on business revenue could affect companies and the local economy.

The case for

The strongest argument for Measure CC is that it would provide recurring, unrestricted revenue for city government. The official ballot analysis estimates that the measure could raise about $12 million a year. The money would go into the city’s General Fund rather than being reserved for one program.

That would give Hayward more flexibility to pay for services such as police, fire protection, street maintenance, libraries and code enforcement. It would not guarantee higher spending or better service in any particular area, but it could increase the city’s overall financial capacity. 1

Measure CC would also replace a system based largely on flat fees and employee counts with a more graduated schedule. The proposal includes a $60 minimum tax and rates on gross receipts ranging from 30 cents to $3.75 per $1,000, with higher rates applying as receipts rise.

That design could put more of the new tax on larger businesses and reduce reliance on a single charge for companies of very different sizes. But the available information does not show that the system would be progressive across all industries. A business’s revenue does not necessarily reflect its profits or ability to pay. 2

The case against

The central concern is that gross receipts are not the same as profit. A gross-receipts tax is based on money coming in before expenses such as wages, inventory and other operating costs are deducted. As a result, a high-volume business with narrow profit margins could pay more in tax relative to its profits than a company with the same revenue but higher margins. 3

Critics also point to the risk of “pyramiding.” If taxes apply at several stages of a supply chain, the same goods or services may effectively be taxed multiple times. That cumulative burden could be larger than the stated rate suggests and could influence decisions about suppliers, production and whether companies handle more operations in-house. 4

Local tax differences may also affect business decisions about where to locate or whether to move. Studies cited in the analysis suggest that municipal taxes can influence business activity and retail relocation. However, local amenities and the benefits of being near other businesses can offset or complicate those effects. The research does not specifically measure a tax with Measure CC’s exact structure, nor does it estimate effects on Hayward jobs, employment or individual companies. 5

The official $12 million estimate is also a projection, not an audited result. The cited materials do not provide a full independent analysis of collection rates, compliance costs, price increases, closures or relocation. Actual revenue could vary with economic conditions, reporting practices, exemptions and city decisions about how the rules apply.

Most importantly, there is no taxpayer-by-taxpayer or industry-by-industry study showing how Measure CC’s classifications, tax brackets and rules for transactions between businesses would affect particular firms. That leaves major questions about low-margin businesses, larger companies and firms with extensive supply chains.