Hawaiian Gardens council OKs placing business license tax measure on Nov. 3 ballot

The Hawaiian Gardens City Council voted unanimously on July 22 to place a proposed business license tax measure on the Nov. 3, 2026 general election ballot.

Staff said the measure, advanced in Resolution 022-2026, would replace a decades-old 1993 business-license structure with a simpler framework: a $50 flat tax for businesses with gross receipts up to $30,000, $0.95 per $1,000 above that threshold, and a flat contractor rate of $175. Staff estimated the change could yield roughly $563,000 annually to the city’s general fund for services such as police, fire, parks and infrastructure.

City staff and consultants told the council HDL completed an analysis of local businesses and compared the city’s rates with neighboring jurisdictions. Staff said the ordinance would set the maximum rates; if voters approve, council retains the authority to lower rates administratively but could not raise them without another ballot measure. The city attorney asked that the council also authorize the mayor and Councilmember Farfan to prepare and file an argument in favor of the measure and to file rebuttals if needed; council approved that companion motion as well.

Council members asked staff to ensure ballot language is clear to voters and to conduct robust outreach, including flyers, email, meetings and video content to explain the measure. Staff said election costs are budgeted and the city will submit required materials to the county registrar by Aug. 7. If voters approve the measure, staff will return to council with implementing ordinances and administrative rules.

What happens next: The resolution directs staff to place the question on the ballot and to undertake community outreach; the city attorney will prepare required materials and the ballot argument will be filed on behalf of the mayor and Councilmember Farfan.