Potential Ballot Measures
2026 General Election
City Council Study Session
June 9, 2026
2 Overview of Potential Ballot Measures
Business License Rate Reform
• Costa Mesa is home to approximately 111,918 residents and 7,987 businesses. • The City adopted its business license structure in 1985, and in the 41 years since, the costs of operations, infrastructure, and public safety have steadily increased. • The current structure uses gross-receipts ranges, and variable rates for certain specialized business types.
Transient Occupancy Tax
• The current TOT rate is 8%, in place since voter approval in November 2010. • Costa Mesa has a lower TOT than most neighboring cities. • The City engaged hotel and motel owners and general managers to provide more information about a potential TOT increase.
Background Ballot Measures Initial Community
Feedback Council Direction
3 Essential Services Supported by the General Fund
Supports Police Services
• Helps maintain low-crime rates
• Funds patrol staffing to keep business areas safe
• Contributes to faster response times for emergency calls Strengthens Fire & Emergency Response
• Supports firefighter staffing and training
• Helps ensure quick response to medical and fire emergencies • Maintains reliable equipment and life-saving resources Improves Local Infrastructure
• Helps maintain roads, streets, sidewalks, and public spaces Enhances Overall Quality of Life
• Ensures businesses operate safely and responsibly
• Helps to provide consistent, dependable and reliable public services • Addressing homelessness
Background Ballot Measures Initial Community
Feedback Council Direction
4 Ballot Measure Timeline
• October 1, 2025: FiPAC begins potential ballot measure(s) discussions. • December 2, 2025: City Council asks staff to explore placement of two ballot measures: (1) Business License Reform and (2) Transient Occupancy Tax (TOT).
• January - April 2026: FiPAC discussion of ballot measures and recommendations. 3/18: Increase of TOT and/or BIA with a maximum of 3 percentage points. 4/08: Business license structure utilizing gross receipts. 4/16: Establish the following in the business license structure:
o Minimum and maximum flat rate
o CPI adjustments
o Competitiveness with neighboring cities
o Define “gross receipts”
o Simple and easy-to-administer structure
Background Ballot Measures Initial Community
Feedback Council Direction
````
Business License Reform
6 Background
• The business license rate was adopted in April 1985.
• Costa Mesa collects business licenses based on gross receipts. Currently, the maximum business license a business may pay is $200.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
Note: Businesses including exhibitions, vehicles, tow trucks, buses, taxi cabs are subject to additional variable rates.
Gross Receipts Business License
Amount
Under $1,000 None
$1,000 - $25,000 $25
$25,001 - $40,000 $35
$40,001 - $75,000 $45
$75,001 - $200,000 $60
$200,001 - $500,000 $100
Over $500,000 $200
7 Gross Receipts
• The City’s Municipal Code (CMMC § 9-9) currently defines gross receipts as:
1. The total amount actually received or receivable from all sales;
2. The total amount of compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares or merchandise; and
3. Gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends or other emoluments, however designated. • For businesses that do not generate gross receipts, the following definition is used:
“Gross receipts” shall be deemed to include the total of all expenses incurred in the retailing, wholesaling, manufacturing or processing of such goods
o At the business location within the city
o For payroll, utilities, depreciation, and/or rent.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
8 Current Registered Businesses
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
Total Gross Receipts Number of
Businesses
Current
RateFrom To
$0 $1,000 1,365 $0
$1,001 $25,000 1,293 $25
$25,001 $50,000 629 $35 to $45
$50,001 $100,000 891 $45 to $60
$100,001 $250,000 1,095 $60 to $100
$250,001 $500,000 508 $100
$500,001 $1,000,000 694 $200
$1,000,001 $5,000,000 1,023 $200
$5,000,001 $25,000,000 348 $200
More than $25,000,000 141 $200
Total 7,987
9 Surrounding Cities
• Surrounding cities vary in the application and formula for determining their Business License rates. Some cities use gross-receipts and others use the number of employees.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
Gross Receipts Costa Mesa Santa Ana Orange Anaheim
$25,000 $25 $82 $35 $40
$100,000 $45 $131 $100 $60
$500,000 $100 $391 $195 $60
$1,000,000 $200 $716 $295 $95
$3,000,000 $200 $2,016 $615 $475
$5,000,000 $200 $3,316 $915 $950
$10,000,000 $200 $6,566 $1,915 $2,375
$25,000,000 $200 $16,316 $4,915 $2,675
By Gross Receipts
10 Surrounding Cities
• Surrounding cities vary in the application and formula for determining their Business License rates. Some cities use gross-receipts and others use the number of employees.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
Per Employee
Per Employee Huntington
Beach
Newport
Beach* Irvine**
5 $83 $55 $72
10 $103 $110 $148
50 $225 $550 $148
100 $327 $1,100 $148
500 $1,127 $1,143 $148
Max None $1,143 $148
*Listed above is the maximum amount for the City of Newport Beach for commercial, sales -tax generating businesses. The maximum amount for a commercial, non-sales-tax generating business is $2,285. **The City of Irvine determines their Business License Fee by resolution, adopted by the City Council. 11 FiPAC Recommendations
• April 16, 2026: FiPAC recommended the below overall structure, leaving the amounts to the discretion of the City Council.
Establish a minimum and a maximum flat-fee rate.
Apply Consumer Price Index (CPI) adjustments to both the rate and the established minimum and maximum flat-fee amounts.
Ensure the structure is competitive with neighboring cities. Define “gross receipts” for consistent application.
Maintain a simple and easy-to-administer structure.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
12 Structure of Potential Ballot Measure
• Based on FiPAC’s recommendations, staff developed a business license rate:
A rate of $0.60 per $1,000 in gross receipts.
A minimum of $25 flat fee (for business $0 - $49,999). A maximum of $15,000 flat fee (for business above $25,000,000). Ensures the rate is below that of neighboring cities based on gross receipts. • Staff looked at ensuring that small businesses were minimally impacted. Just over 41% of businesses would only pay the minimum rate of $25.
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
13 Structure of Potential Ballot Measure
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
Total Gross Receipts Number of
Businesses
Current
Rate
Potential Ballot Measure
From To Recommended Rate Equivalent Amount
$0 $1,000 1,365 $0
Minimum Rate Applies $25$1,001 $25,000 1,293 $25
$25,001 $50,000 629 $35 to $45
$50,001 $100,000 891 $45 to $60
Rate of $0.60 per
$1,000
$30 to $60
$100,001 $250,000 1,095 $60 to $100 $60 to $150
$250,001 $500,000 508 $100 $150 to $300
$500,001 $1,000,000 694 $200 $300 to $600
$1,000,001 $5,000,000 1,023 $200 $600 to $3,000
$5,000,001 $25,000,000 348 $200 $3,000 to $15,000
More than $25,000,000 141 $200 Maximum Rate Applies $15,000 Over 41% of
businesses would
pay the minimum
rate of $25.
Less than 2% of
businesses would
pay the maximum
rate of $15,000.
Note: Businesses $49,999 and less will be subject to the minimum annual rate of $25. 14 • The proposed structure would be competitive for small businesses ($100,000 or less in gross receipts). • The proposed structure would be competitive with Santa Ana for larger businesses ($1 million or more in gross receipts).
Structure of Potential Ballot Measure
Gross Receipts Costa Mesa
(Current)
Costa Mesa
(Business License
Reform)
Santa Ana Orange Anaheim
$25,000 $25 $25 (min) $82 $35 $40
$100,000 $45 $60 $131 $100 $60
$500,000 $100 $300 $391 $195 $60
$1,000,000 $200 $600 $716 $295 $95
$3,000,000 $200 $1,800 $2,016 $615 $475
$5,000,000 $200 $3,000 $3,316 $915 $950
$10,000,000 $200 $6,000 $6,566 $1,915 $2,375
$25,000,000 $200 $15,000 (max) $16,316 $4,915 $2,675
Background Ballot Measures Initial Community
Feedback Council Direction
Business License
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Transient Occupancy Tax
16 Background
• 1978: The City’s Transient Occupancy Tax (TOT) goes into effect at a rate of 6%. • 2010: The City Council approved a ballot measure to increase TOT from 6% to 8%, which was approved by the voters in November 2010.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
17 Surrounding Cities
• Costa Mesa one of the lowest TOT rates in Orange County.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
City TOT Rate (%) City TOT Rate (%) City TOT Rate (%)
Anaheim 15 Cypress 10 San Juan Capistrano 10
Garden Grove 14.5 Dana Point 10 Yorba Linda 10
Tustin 13 Fountain Valley 10 Irvine 8
Buena Park 12 Fullerton 10 Costa Mesa 8
La Palma 12 Huntington Beach 10 Laguna Niguel 8
Laguna Beach 12 Laguna Woods 10 Los Alamitos 8
Laguna Hills 12 Lake Forest 10 Mission Viejo 8
Seal Beach 12 Newport Beach 10 Stanton 8
Santa Ana 11 Orange 10 Westminster 8
Aliso Viejo 10 Placentia 10 La Habra None
Brea 10 San Clemente 10 Rancho Santa Margarita None
Villa Park None
18 Surrounding Cities
• Costa Mesa receives a lower amount of TOT compared to surrounding cities.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
City
TOT
Rate
(%)
TOT Revenue Short Term
Rental PolicyFY 2024-25
Actuals
FY 2025-26
Adopted
FY 2026-27
Proposed
Anaheim 15 $243,756,577 $246,574,505 $257,120,184 Allowed Huntington Beach 10 $16,022,412
$967,767 (STR)
$16,088,389
$1,000,000 (STR)
$16,488,230
$967,767 (STR) Allowed
Newport Beach 10 $33,174,269 $33,994,371 $33,496,235 Allowed Santa Ana 11 $9,475,393 $9,500,000 $9,500,000 Not allowed Costa Mesa* 8 $9,962,421 $9,843,276 $10,573,611 Homeshares allowed
Irvine 8 $19,270,070 $19,614,548 $19,866,142 Not allowed *Costa Mesa TOT currently does not capture revenues associated with homeshares. 19 Business Improvement Area (BIA)
• In addition to the TOT, the City has 10
hotels participate in a BIA through
Travel Costa Mesa.
This voluntary assessment is an
additional 3% above the City’s
required TOT.
The additional 3% funds go to
Travel Costa Mesa (99%) and the
City (1%).
• Other cities in Orange County have
similar assessments, but may differ in
how they implement the assessment.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
Cities TOT Rate
(%)
Assessment*
(%)
Total Rate
(%)
Anaheim 15 2 17
Garden Grove 14.5 2.5 17
Huntington Beach 10 6 16
Newport Beach 10 5 15
Buena Park 12 2 14
Laguna Beach 12 2 14
Santa Ana 11 2 13
Dana Point 10 1 - 1.5 11 - 11.5
Costa Mesa 8 3 11
Irvine 8 2 10
*Assessments may include Business Improvement Areas (BIA), Meetings Assessment Partnerships (MAP), Tourism Business Improvement Districts (TBID).
Surrounding Cities TOT and Assessment Rates
20 FiPAC Recommendations
• March 18, 2026: FiPAC recommended that the City Council approve an initiative for the November 3, 2026, ballot to increase the TOT by a maximum of 3 percentage points. • FiPAC emphasized considering market competitiveness in conjunction with the existing 3% BIA rate.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
21 Structure of Potential Ballot Measure
• The City is estimated to generate an additional $1 million in revenue from TOT for every additional percentage point above the current 8% rate.
• Under this proposal, a 3% increase to the TOT is estimated to generate approximately $3 million in additional revenue.
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
Rate
Increase
Total TOT
Rate
Estimated Revenue
to be Generated
1% 9% $1M
2% 10% $2M
3% 11% $3M
22 Structure of Potential Ballot Measure
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
City TOT Rate (%) City TOT Rate (%) City TOT Rate (%)
Anaheim 15 Cypress 10 San Juan Capistrano 10
Garden Grove 14.5 Dana Point 10 Yorba Linda 10
Tustin 13 Fountain Valley 10 Irvine 8
Buena Park 12 Fullerton 10 Laguna Niguel 8
La Palma 12 Huntington Beach 10 Los Alamitos 8
Laguna Beach 12 Laguna Woods 10 Mission Viejo 8
Laguna Hills 12 Lake Forest 10 Stanton 8
Seal Beach 12 Newport Beach 10 Westminster 8
Costa Mesa 11 Orange 10 La Habra None
Santa Ana 11 Placentia 10 Rancho Santa Margarita None
Aliso Viejo 10 San Clemente 10 Villa Park None
Brea 10
23 Structure of Potential Ballot Measure
Background Ballot Measures Initial Community
Feedback Council Direction
TOT / Hotel Tax
Cities TOT Rate
(%)
Assessment*
(%)
Total Rate
(%)
Anaheim 15 2 17
Garden Grove 14.5 2.5 17
Huntington Beach 10 6 16
Newport Beach 10 5 15
Buena Park 12 2 14
Costa Mesa 11 3 14
Laguna Beach 12 2 14
Santa Ana 11 2 13
Dana Point 10 1 - 1.5 11 - 11.5
Irvine 8 2 10
Surrounding Cities TOT and Assessment Rates
*Assessments only applies to participating hotels.
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Initial Community
Feedback
25 Community Feedback: Initial Results
• The City retained the services of FM3 Research for a community survey to determine initial interest in Business License Reform and a TOT increase.
Background Ballot Measures Initial Community
Feedback Council Direction
220-7883
Opinions on Local Revenue Options
for the City of Costa Mesa
Highlights of a Survey of Likely Voters
27 Dates May 4-11, 2026
Research Population Likely November 2026 Voters in the City of Costa Mesa Total Interviews 426
Margin of Sampling Error (Full Sample) ±4.9% at the 95% Confidence Level (Half Sample) ±6.9% at the 95% Confidence Level
Contact Methods
Data Collection Modes
Languages English & Spanish
Survey Methodology
(Note: Not All Results Will Sum to 100% Due to Rounding) Text
Invitations
Telephone
Calls
Email
Invitations
Telephone
Interviews
Online
Interviews
28 Context
29 Q. Next, in your personal opinion, do you think the City of Costa Mesa has a great need for additional funding, some need, a little need or no real need for additional funds to provide the level of City services that Costa Mesa residents need and want?
A slight majority perceive the City has at least some need for additional funds to provide City services, with less than 2-in-10 indicating there is a great need. 17%
35%
11%
22%
15%
Great need
Some need
A little need
No real need
Don’t know
A Little/
No Real Need
33%
Great/
Some Need
52%
30 Initial Attitudes on a
Potential Business License Reform
Ballot Measure
31 Hypothetical Ballot Title and Summary Tested in Survey Q. If the election were held today, do you think you would vote yes or no on this measure? (As Approved by Legal Counsel)
Costa Mesa Fair Business License Update, Small Business Protection Measure
Shall an ordinance, without taxing residents, updating City of Costa Mesa’s outdated business license tax, ensuring fairness to all businesses and funding general city services, including keeping public/business areas safe/ clean; preventing crime/thefts/burglaries; addressing homelessness; by revising the tax rate to 60¢ per $1,000 gross receipts, capped at $15,000, with small businesses paying only $25 a year;
generating approximately $6,000,000 annually until ended by voters, requiring audits, spending disclosure, all funds locally controlled, be adopted?
32 19%
25%
9%
4%
9%
20%
14%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
53%
A slight majority initially support the measure, but support is soft with only close to 2-in-10 who would definitely vote yes and a fairly large group of undecided voters.
Q. If the election were held today, do you think you would vote yes or no on this measure? 44%
Total
No
33%
(MOE: ±4.9%)
33 Support for the measure exceeds opposition across all Districts, with the strongest support in District 4.
Q. If the election were held today, do you think you would vote yes or no on this measure? Initial vote on the Business License Tax by City Council District 47%
55% 50%
61% 56% 54%
39%
30%
40%
25% 27% 30%
14% 15% 10% 14% 17% 16%
District 1 District 2 District 3 District 4 District 5 District 6 Total Yes Total No Undecided
(% of Sample) (21%) (17%) (16%) (20%)(9%)(17%)
34 There is a strong connection between perceptions of the City’s need for additional funding and opinions on the measure.
Q. If the election were held today, do you think you would vote yes or no on this measure? 68%
31%
49%
22%
53%
24%
10% 15%
27%
Great/Some Need A Little/No Real Need Don't Know
Total Yes Total No Undecided
(% of Sample) (52%) (33%) (15%)
Initial vote on the Business License Tax by Need for Funding 35 Budget Priorities
36 Extremely/Very
Important
91%
89%
88%
87%
87%
87%
86%
86%
Voters’ top priorities for the measure largely relate to public safety in a variety of ways.
Q. Next, please consider some potential elements of the ballot measure you just considered, including ways in which the funds it generates could be spent, and provisions that could be included. Regardless of your opinion of the measure, please indicate how important each one is to you personally: extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
44%
63%
55%
53%
46%
45%
49%
39%
47%
26%
34%
34%
41%
42%
37%
47%
8%
8%
8%
12%
10%
11%
8%
11%
4%
6%
Keeping public areas safe and clean
^Maintaining 911 emergency, fire,
and police response
Preventing crime
Maintaining fire protection
Responding to thefts and burglaries of
local small businesses
Maintaining City fire stations in
good working condition
Recruiting and retaining well-trained police officers
Maintaining the City’s long-term financial stability
Extremely Important Very Important Somewhat Important Not Too Important Don't Know 37 Extremely/Very
Important
84%
84%
81%
81%
81%
80%
80%
Q. Next, please consider some potential elements of the ballot measure you just considered, including ways in which the funds it generates could be spent, and provisions that could be included. Regardless of your opinion of the measure, please indicate how important each one is to you personally: extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
Continued
38%
34%
50%
40%
38%
45%
35%
46%
50%
32%
41%
43%
35%
44%
14%
14%
12%
11%
16%
14%
14%
4%
6%
5%
^Keeping roads in good condition
^Repairing streets and potholes
^Addressing homelessness
Recruiting and retaining well-trained firefighters
and paramedics
^Maintaining City parks
Preventing property crimes, thefts and burglaries
Maintaining safe routes to school
Extremely Important Very Important Somewhat Important Not Too Important Don't Know 38 Extremely/Very
Important
79%
79%
76%
75%
75%
75%
Q. Next, please consider some potential elements of the ballot measure you just considered, including ways in which the funds it generates could be spent, and provisions that could be included. Regardless of your opinion of the measure, please indicate how important each one is to you personally: extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
Continued
42%
38%
31%
45%
36%
33%
37%
42%
45%
30%
39%
42%
14%
16%
19%
21%
17%
18%
4%
5%
4%
Providing safe places for children to play
Attracting and retaining local businesses
^Maintaining and repairing sidewalks
Attracting and retaining small local businesses
Maintaining gang prevention programs
^Cleaning up illegal dumping
Extremely Important Very Important Somewhat Important Not Too Important Don't Know 39 Extremely/Very
Important
74%
74%
73%
72%
72%
71%
70%
Q. Next, please consider some potential elements of the ballot measure you just considered, including ways in which the funds it generates could be spent, and provisions that could be included. Regardless of your opinion of the measure, please indicate how important each one is to you personally: extremely important, very important, somewhat important, or not too important. ^Not Part of Split Sample (Ranked by Extremely/Very Important)
Continued
37%
33%
38%
38%
33%
34%
41%
37%
41%
35%
34%
39%
37%
29%
20%
19%
17%
17%
20%
18%
16%
9%
8%
6%
5%
8%
4%
6%
6%
^Maintaining storm drains to prevent ocean and
beach pollution
Keeping business areas safe and clean
^Preparing for and responding to wildfires and
other disasters
Addressing smash and grabs
^Reducing fire risk by managing brush and other fuels
Upgrading lifesaving firefighting equipment
Maintaining police protection
Extremely Important Very Important Somewhat Important Not Too Important Don't Know 40 Effect of Educational Statements
41 -13%
41%
22%
8%
2%
2%
16%
10%
After education, overall support increases 18% to 71% on this simple majority measure, with more than 4-in-10 saying
they would definitely vote yes.
Q. If the election were held today, do you think you would vote yes or no on this measure? Initial Vote Vote After Education
19%
25%
9%
4%
9%
20%
14%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
53%
Total
Yes
71%
44% 63%
Total
No
33%
Total
No
20%
(MOE: ±4.9%)
Vote Change
+18%
-4%
42 Initial Attitudes on a
Potential TOT Ballot Measure
43 Hypothetical Ballot Measure Tested in Survey
Q. If the election were held today, would you vote yes or no on this measure? (As Approved by Legal Counsel)
Costa Mesa Public Safety/City Services Measure. Shall the measure maintaining general city services such as 911 emergency, fire, police response and anti-gang programs; preparing for/ responding to wildfires/other natural disasters; supporting youth/ afterschool programs, senior services; maintaining City parks; keeping roads in good condition by adjusting the transient occupancy tax, paid only by hotel and motel guests, from 8% to 11%, providing approximately $3,000,000 annually until ended by voters, requiring audits, spending disclosures, all funds locally controlled, be adopted?
44 28%
16%
8%
4%
10%
23%
12%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
51%
Support for the TOT measure is right at the simple majority level needed for passage and well within the margin of error, although opinions may have been hurt by the measure being asked after all BLT questions.
Q. If the election were held today, would you vote yes or no on this measure? 44%
Total
No
37%
(MOE: ±4.9%)
45 45%
52% 58%
49% 44%
57%
45%
33% 30%
38%
46%
30%
10% 15% 12% 13% 10% 13%
District 1 District 2 District 3 District 4 District 5 District 6 Total Yes Total No Undecided
The TOT measure is stronger in Council Districts 3 and 6.
Q. If the election were held today, would you vote yes or no on this measure? (% of Sample) (21%) (17%) (16%) (20%)
Initial Vote on the TOT by City Council District
(9%)(17%)
46 Almost 6-in-10 voters who believe the city needs
additional funds support the TOT measure.
Q. If the election were held today, would you vote yes or no on this measure? 59%
40%
49%
31%
48%
34%
10% 13% 17%
Great/Some Need A Little/No Real Need Don't Know
Total Yes Total No Undecided
(% of Sample) (52%) (33%) (15%)
Initial Vote on the TOT by Need for Funding
47 Conclusions
48 Conclusions
• A majority feel the City has at least “some need” for additional funding, but only 17% believe the City is in “great need” of additional funding. • A business license tax reform measure is viable for further planning, assuming substantial communication with voters and stakeholder outreach. • Initial support exceeds the majority vote threshold, but is somewhat soft and there are a substantial number of undecided voters.
• Simulating education lifts the measure to 71% signaling the importance of doing community outreach.
• Public safety (described in a variety of ways) is the top priority for funding from a BLT measure, followed by addressing homelessness, repairing streets and potholes, and maintaining parks.
• A TOT measure could also be viable but needs further exploration. There is soft initial support, but the survey did not include detailed questions about the elements or themes related to the measure.
220-7883
Opinions on Local Revenue Options
for the City of Costa Mesa
Highlights of a Survey of Likely Voters
````
Council Direction
51 Council Considerations
Business License Reform Transient Occupancy Tax
FiPAC
Recommendations
• A minimum and a maximum flat-fee rate.
• CPI adjustments to both the rate and
minimum/maximum flat-fee amounts.
• Competitive structure with neighboring cities.
• Define “gross receipts” for consistent
application.
• Simple and easy-to-administer structure.
• Proceed with placing on ballot with up
to a 3% TOT rate increase.
Proposed Ballot
Structure
• $0.60 per $1,000 in gross receipts.
• Minimum of $25 flat fee for businesses up to
$49,999 in gross receipts.
• Maximum of $15,000 flat fee for businesses
over $25 million in gross receipts.
Up to:
• 1% increase to TOT.
• 2% increase to TOT.
• 3% increase to TOT.
Estimated
Revenue
• $5 million above what is currently received,
based on the $0.60 per $1,000 in gross
receipts rate.
• $1 million - $3 million above what is
currently received, depending on the
rate.
Staff Request Council to provide direction. Council to provide direction.
Background Ballot Measures Initial Community
Feedback Council Direction
52 Staff Request
Background Ballot Measures Initial Community
Feedback Council Direction
• Council may provide direction on the placement of the measure(s) on the November 3, 2026 ballot.
Provide direction to staff regarding the placement of potential Business License Reform measure on the Novemmber 3, 2026 ballot. Provide direction to staff regarding the placement of potential Transient Occupancy Tax (TOT) measure on the Novemmber 3, 2026 ballot. 53 Ballot Measure Timeline
Background Ballot Measures Initial Community
Feedback Council Direction
Date Event
June 9, 2026 City Council Study Session to review potential ballot measures.
July 21, 2026 City Council votes on placement of measures on the November 3, 2026 ballot.
August 7, 2026 Deadline to file with County Registrar of Voters.
November 3, 2026 Election Day
December 1, 2026 City Council accepts certification of the election results.
Questions
Retail Gross Receipts Costa Mesa -
old
Santa Ana Orange Anaheim Costa Mesa
Proposed -
$0.2/thousand
Costa Mesa
Proposed -
$0.5/thousand
Costa Mesa
Proposed -
$0.6/thousand
Costa Mesa
Proposed -
$0.7/thousand
25,000.00$ 25.00$ 82.00$ 35.00$ 40.00$ 5.00$ 12.50$ 15.00$ 17.50$ 100,000.00$ 45.00$ 131.00$ 100.00$ 60.00$ 20.00$ 50.00$ 60.00$ 70.00$ 500,000.00$ 100.00$ 391.00$ 195.00$ 60.00$ 100.00$ 250.00$ 300.00$ 350.00$ 1,000,000.00$ 200.00$ 716.00$ 295.00$ 95.00$ 200.00$ 500.00$ 600.00$ 700.00$ 3,000,000.00$ 200.00$ 2,016.00$ 615.00$ 475.00$ 600.00$ 1,500.00$ 1,800.00$ 2,100.00$ 5,000,000.00$ 200.00$ 3,316.00$ 915.00$ 950.00$ 1,000.00$ 2,500.00$ 3,000.00$ 3,500.00$ 10,000,000.00$ 200.00$ 6,566.00$ 1,915.00$ 2,375.00$ 2,000.00$ 5,000.00$ 6,000.00$ 7,000.00$ 25,000,000.00$ 200.00$ 16,316.00$ 4,915.00$ 2,675.00$ 5,000.00$ 12,500.00$ 15,000.00$ 17,500.00$