Would Measure BB make Emeryville’s business tax fairer?
on October 28, 2026
Emeryville voters will decide Tuesday on Measure BB, which would reform the city’s 42-year-old business license tax structure and generate $5.9 million annually, beginning next year.
City Council members unanimously approved the measure this summer, aiming to “create a simpler, fairer business license tax structure that better reflects Emeryville’s economy today,” according to the city’s statement in the Alameda County Voter Information Guide.
Small business owner Mary Lou Thiercof called the measure a “no-brainer.”
“Emeryville has a growing deficit and needs some improved avenues of revenue,” said Theircof, CEO of Emeryville Commerce Connection, a business advocacy group.
“All our neighboring East Bay cities have updated their business tax policies many times. It is time we did.”
The city’s currently classifies businesses into 56 categories for tax purposes. Most businesses are charged a license tax of 0.1% of gross receipts annually. Measure BB would consolidate these categories into three groups, creating a tiered structure that taxes businesses at different rates depending on the size and the services the business provides.
The measure would raise the business license tax from 0.1% to 0.3% of total receipts if a business falls under the “services, contractor, and unclassified” category, and from 0.1% to 0.4% if a business is part of the “real property rental and professional and advanced” category. The tax rate on “general commerce, retail and utility” businesses, like restaurants, hotels, and boutiques will remain the same.
The measure would also raise the tax cap from $300,000 to $800,000, even if the taxed percentage of gross receipts exceeds that number. Tax caps, which are not implemented in many Bay Area cities, are intended to attract big businesses with the promise of limited fees. If Measure BB passes, Emeryville’s largest businesses could be paying half a million dollars more.
The smallest businesses may see a tax reduction: If a business makes less than $100,000 in gross receipts, it will pay a flat rate of $25. Currently, that threshold is $25,000. The city predicts 1,924 businesses will benefit from the increased tax threshold.
The funds would be subject to public spending disclosures and annual reports. Money generated by the measure will go into the city’s general fund.
The idea behind the measure was introduced by city staff during a March 2025 strategic planning session focused on the general fund deficit. The city hopes Measure BB funds will reduce the nearly $10 million shortfall.
“The City has relied on the use of reserves in the last several years to preserve services and balance the budget. However, the use of reserves is not a long-term sustainable strategy,” wrote Sharon Friedrichsen, Emeryville’s finance director, in an email to Emeryville Today.
Measure BB is expected to bring in $12.4 million dollars annually — about $5.9 million in new revenue, combine with over $6 million the tax currently generates. Friedrichsen estimates the additional funding could halve the budget shortage, which is projected expected to grow to $13 million by the 2029-30 fiscal year.
About 56% of Emeryville’s general fund is spent on public safety, which includes police, public works, community services and community development. The funding generated by Measure BB also will go toward maintaining parks, street and road repair, police response and senior and youth services, as well as improving crime prevention, and general government use.
The last time Emeryville’s business license tax was on the ballot was in 2011, in the form of Measures C and D. They did not alter Emeryville’s underlying tax structure, but did change tax rates. Measure C increased the business license tax from 0.08% to 0.1%. Measure D increased the business tax cap from $117,000 to $300,000 a year.
The city argued then in the voter’s guide: “Emeryville public services have been reduced due to the recession and the state theft of funds from local governments. … The Business Tax recognizes the need for businesses to contribute to the cost of city operations.”
Both Measures C and D passed with over 80% of the vote.
Emeryville is predicting a comparable level of support this year. But similar to 2011, the new measure will not completely solve the budget deficit.
In a July City Council meeting, Councilmember David Mourra pointed out that if Measure BB passes, the city still could have a $7 million deficit in a couple of years.
“OK, so even when we are successful, we’re still looking at a massive deficit,” Mourra said.
“That’s correct,” Friedrichsen replied.
Broad appeal
Political groups like the Alameda County Democrats, The Green Party of Alameda County, and the East Bay Democratic Socialists of America have announced their support for the measure. The League of Women Voters of Berkeley Albany and Emeryville also back it.
In its statement of support, the League said the measure will establish a more fair tax system and will contribute to the city’s structural deficit without creating a new tax for residents.
“We know it is a bill that brings in a lot of much needed revenue that seems fair,” said Sharon Goldfarb, co-president of the League chapter.
No argument against Measure BB was submitted to the Alameda County Voter Information Guide, though the measure is opposed by some Republican political groups. In election guides, California College Republicans and conservative PAC Reform California both advise Emeryville residents to vote “no” on the measure. The College Republicans called it a costly sales tax that “will destroy jobs to simply support more massive levels of wasteful spending by the city.”
But this oppositional voice will likely sway few people in Democratic-heavy Emeryville. A city-commissioned public opinion survey conducted in spring 2026 found that 76.4% of respondents agreed with a potential business license tax reform measure.
(Top photo of Bay Street by Alessandra Rizzo)
ICE entered Highland Hospital without a warrant; Alameda County Supervisors want answers
Emeryville Today welcomes comments from our readers, but we ask users to keep all discussion civil and on-topic. Comments post automatically without review from our staff, but we reserve the right to delete material that is libelous, a personal attack, or spam. We request that commenters consistently use the same login name. Comments from the same user posted under multiple aliases may be deleted. Emeryville Today assumes no liability for comments posted to the site and no endorsement is implied; commenters are solely responsible for their own content.
