Should Newark voters approve Measure DD? (November 3, 2026 ballot)

What's this about?

People disagree about whether Newark voters should approve Measure DD on November 3, 2026.

The plan would change the city’s business tax and raise money for city needs.

What supporters say

• Many small businesses would pay a lower minimum tax under the new plan.
• The measure could bring Newark about $6.6 million each year for changing needs.
• A tax on sales income might make tax collection easier than checking business profits.

What critics say

• The city could spend the money on any legal need, not only listed services.
• The public has limited proof that Newark’s money estimate is correct.
• A tax on sales income could hurt firms that make little profit or lose money.
• Some businesses might pass these costs to shoppers or workers through higher prices or lower pay.

How to read this

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

Newark voters will decide on Nov. 3, 2026, whether to approve Measure DD, a redesign of the city’s business tax. The proposal would create ongoing revenue for city government while changing which businesses pay—and would leave officials free to spend the money on any lawful municipal purpose.

The case for

The strongest argument for Measure DD is that it would provide a recurring source of local revenue. The city attorney’s impartial analysis estimates that the measure could raise about $6.6 million a year. Newark budget materials cite continuing pressure from core services, infrastructure needs, inflation, economic uncertainty and emerging community demands. Because the money would be unrestricted, officials could shift it among priorities as conditions change rather than being locked into one program. 1

The measure would not affect every business in the same way. It would replace the current $39 minimum tax with a $25 minimum on the first $100,000 in gross receipts. City materials say many small businesses would pay less under that change, although other businesses would face category-based rates as high as 0.3 percent of gross receipts. 2

Supporters could also argue that taxing gross receipts may be easier to administer than taxing profits. A receipts-based system does not depend as heavily on auditing complex expenses. General research describes that advantage, and San Francisco provides an example of a California city administering activity-based gross-receipts taxes through reporting and classification rules. But there is limited evidence that Measure DD would produce specific administrative savings in Newark. 3

The case against

The main concern is that a gross-receipts tax applies to revenue, not profit. A business with high costs or very narrow margins could owe tax even when it makes little money—or loses money. The tax can also be applied repeatedly as goods and services move through supply chains, creating different burdens for businesses depending on whether they manufacture, distribute, wholesale or contract. General research supports these concerns, but does not show how large the effect would be in Newark. 4

Some of the cost could also move beyond the businesses that remit the tax. Companies might respond through higher prices, lower wages or reduced returns, depending on competition and market conditions. Research identifies all of these as possible effects but does not establish their likely size or direction under Measure DD.

Another concern is accountability. Although ballot materials mention services such as pothole repair, emergency response, fire protection, police patrols and parks, the measure is legally a general tax. Its proceeds could be used for any legitimate governmental purpose. Voters therefore would not have a legal guarantee that the projected $6.6 million would go to the listed services. 6

The revenue estimate itself also has limits. It is an official projection, repeated in a secondary summary, but the identified public materials do not explain the underlying assumptions about the number of businesses, their receipts, changes in behavior or the effect of a recession. Nor do they show what service cuts would occur if the measure failed. 7