Costa Mesa · Tax measure · Nov 3, 2026
Measure C: Business license tax reform
Measure C is on the Nov 3, 2026 ballot in Costa Mesa. This page summarizes the official documents; every statement links to its source, and we take no position on how you should vote.
The question on your ballot
“Without taxing residents, shall the measure be adopted, updating Costa Mesa’s 41-year-old business license tax, ensuring large businesses pay their proportionate share and helping fund general city services including keeping public areas safe/clean; preventing crime/burglaries; addressing homelessness; maintaining Costa Mesa’s financial stability; revising the tax rate to 50¢ per $1,000 gross receipts, with no increase for small businesses; generating approximately $5,600,000 annually until ended by voters, requiring audits, spending disclosure, funds locally controlled?”A YES vote means
A “yes” vote would approve reforming the business license tax, leaving the tax unchanged for small businesses and establishing an updated rate for businesses earning over $500,000 annually.
A NO vote means
A ”no” vote would leave the existing business license tax in place and maintain the existing $200 cap adopted in 1985.
The money
The Measure is anticipated to raise an additional $4.6 million dollars annually, to be placed into the general fund.
City Attorney's Impartial Analysis of Measure C · Jul 30, 2026
Business license tax receipts in the City are currently approximately $1 million.
City Attorney's Impartial Analysis of Measure C · Jul 30, 2026
For businesses with annual gross receipts exceeding $500,000, the tax is fifty cents per one thousand dollars of gross receipts, subject to a maximum annual tax of fifteen thousand dollars for businesses earning $30 Million dollars or more annually.
All funds received will be locally controlled and subject to annual public spending disclosures and audit.
City Attorney's Impartial Analysis of Measure C · Jul 30, 2026
How it got on the ballot
The Measure was placed on the ballot by the City Council.
City Attorney's Impartial Analysis of Measure C · Jul 30, 2026
The official arguments
These are the arguments filed with the county for the official voter guide. They are written by their authors, not by the city or by us. We summarize what each says, not whether it is accurate.
Argument in favor
Says the business license cost has not increased since 1985 while city expenses rose, that the change does not apply to businesses under $500,000 in sales, and that the added $4.6 million a year would fund police, fire, buildings, parks, streets and technology.
Signed by Tom Arnold, Former Interim Costa Mesa Fire Chief; Steven Cathey, President, Costa Mesa Firefighters Association; Art Perry, Director, Costa Mesa Sanitary District; Liz Dorn Parker, Trustee, Coast Community College District; Kirk Bauermeister, Costa Mesa Resident
Read the official documents
Neighbor opinions
Where do you stand on Business license tax reform?
Opinions from people who signed in. Not a poll, not a vote, and not our endorsement. We don't check where anyone lives. Your name is never shown.
Keep going on your Costa Mesa ballot
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