City of Costa Mesa Measure C — The Costa Mesa Fair Business License Reform, Small Business Protection Measure (Orange County)

What it does

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

Costa Mesa would update its business license tax to 50¢ per $1,000 of gross receipts, with no increase for small businesses, raising about $5,600,000 a year for general city services until ended by voters.

A NO vote means

Costa Mesa's current business license tax would not change.

Needed to pass

A simple majority: more than half of the YES and NO votes on this measure must be YES. Leaving it blank doesn't count either way.

Left–right lean

Unclear: our AI read of the official summary isn't confident enough (we require 70%) to place this on the left–right spectrum, so we don't. Read the summary and decide for yourself.

The YES and NO lines are SpectrumVote's plain-language reading of the official text above; the official text is what you vote on.

Official text: source

Explained

Example

Under the new schedule, a business with $2 million in annual gross receipts would pay $0.50 × 2,000 = $1,000 a year, instead of today's $200 maximum. A business with $400,000 in gross receipts would keep paying $100. (source)

Who would notice

Costa Mesa businesses with more than $500,000 in annual gross receipts. The City Attorney says the tax stays the same for over 72% of existing businesses. Residents are not taxed by it.

How it got here

The City Council placed it on the ballot as a city-sponsored measure. Its findings say the $200 cap has shifted more of the tax onto smaller businesses over time. Revenue would go to the general fund to support services such as 911, fire and police response, homelessness prevention, street repair and parks, per the impartial analysis.

Written by SpectrumVote from 1 linked sources (1). Arguments are each side's own, not ours; the official text is what you vote on.

Background

Measure C was placed on the ballot by the Costa Mesa City Council and would amend the city's business license tax, adopted in 1985 and unchanged since, according to the City Attorney's impartial analysis.

The current tax is capped at $200 a year regardless of a business's earnings; under the measure, businesses with $500,000 or less in gross receipts (over 72% of existing businesses) would pay no more than now, while larger businesses would pay fifty cents per $1,000 of gross receipts, up to $15,000 a year for those earning $30 million or more.

The analysis states business license tax receipts are now about $1 million a year and the measure is expected to raise an additional $4.6 million a year for the general fund; the Council could lower rates for specific business types but not exceed the maximum schedule.

Put on the ballot by Costa Mesa City Council (2026).

From official source.

Next elections here

• 2028 presidential election · Who has filed so far, from FEC filings

Also on Orange County ballots

• City of Irvine Measure D — Measure Directing the Use of Ranked Choice Voting for City Council Member and Mayoral Elections after January 1, 2028
• City of Laguna Beach Measure E — An Ordinance of the People of the City of Laguna Beach, California, Adding Section 2.04.080 to the Laguna Beach Municipal Code to Establish Term Limits for City Council Members
• City of Lake Forest Measure F — Lake Forest Election Reform and Voter Choice Measure
• City of Los Alamitos Measure G — Los Alamitos Hotel Tax (TOT Measure)
• City of Newport Beach Measure H — City of Newport Beach General Plan – Amendment
• City of Orange Measure I — City of Orange Public Safety/Essential Services Measure
• City of Orange Measure J — City of Orange Hotel Guest Tax Modification Measure
• City of Orange Measure K — Proposed Charter for the City of Orange
• City of Placentia Measure L — Placentia Hotel Tax Measure
• City of San Clemente Measure M — San Clemente Natural Hazards Sales Tax Citizens Initiative
• City of Santa Ana Measure N — Santa Ana Streets, Public Safety, Essential City Services Measure
• City of Westminster Measure O — Westminster City Services Measure

All Orange County races and measures →

Quick answers

What does a YES vote on City of Costa Mesa Measure C mean?

Costa Mesa would update its business license tax to 50¢ per $1,000 of gross receipts, with no increase for small businesses, raising about $5,600,000 a year for general city services until ended by voters.

What does a NO vote on City of Costa Mesa Measure C mean?

Costa Mesa's current business license tax would not change.

Would residents pay this tax?

No. The impartial analysis says it is charged to businesses using city services, not to residents.

Does it raise taxes on small businesses?

Not for businesses with $500,000 or less in annual gross receipts; their tax stays the same.

Is there an argument against in the voter guide?

No. No argument against Measure C was submitted.

How many votes does City of Costa Mesa Measure C need to pass?

A simple majority: more than half of the YES and NO votes on this measure must be YES. Leaving it blank doesn't count either way.

Should I vote yes or no on City of Costa Mesa Measure C?

SpectrumVote doesn't endorse anyone or tell you how to vote. Read what a YES and a NO vote each do, and the official text, then decide based on what you want to happen.

When is the vote?

The general election was Tuesday, November 3, 2026. Counts are unofficial until each state certifies its results over the following weeks; your state or county election office has the official results.