Warehouse General Tax Measure

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Key Facts

The Measure is entitled: Perris Distribution Facilities, Industrial Business and Truck Yards Tax Measure
City voters would have to approve the measure via a November 3, 2026 Ballot Measure for the tax to take effect
Approval requires 50% + 1 of voters to vote in favor of the measure to pass
The measure proposes a business license tax of up to 10 cents ($0.10) per square foot on non-ecommerce industrial, warehouse, and manufacturing facilities with large truck activity, with annual increases capped at 3% (CPI adjusted).
If adopted by voters, the measure would raise just over $2.5M in the first year it is in effect
This would not be a tax on residents, home property owners, or traditional small local businesses.
Generates locally controlled general revenue, with all funds deposited directly into the City’s General Fund for unrestricted municipal revenue purposes.
By law, all revenue stays in Perris and cannot be taken by the State or transferred to another agency.

Official Ballot Question

Shall the measure with no tax on residents, funding public services including maintaining 911 emergency response, public safety; repairing streets/potholes, improving traffic/safety; retaining small businesses, by establishing a business license tax of up to 10¢ per square foot of industrial/ warehouse/ manufacturing businesses with large truck activity, 3% annual increase limit, providing approximately $2,500,000 annually until ended by voters, requiring spending disclosure, all funds used locally, be adopted?

Ordinances & Resolutions

Financial Outlook

The City of Perris has over 30 million square feet of warehouse and industrial facilities operating within city limits. While these facilities have brought logistics activity to the region and created jobs and economic development, heavy vehicle and truck traffic creates significant wear and tear on local roads, bridges, and infrastructure. Additionally, these warehouse and industrial areas require dedicated municipal resources, including police patrol services, traffic management, and emergency response.

While Perris voters successfully approved Measure B in June 2026 to support general city services, many non-ecommerce warehouses operating in Perris generate no local sales tax revenues to help offset the demands they place on municipal infrastructure and public safety.

Establishing a local business license tax on qualifying large-scale warehouses ensures these industrial operations contribute directly toward maintaining the local infrastructure they utilize, providing approximately $2,523,877 annually in locally controlled funding.

What Has the City Done to Manage Its Budget?

The City of Perris has consistently demonstrated strong financial stewardship to protect taxpayer funds and ensure long-term stability:

Maintained a strong fiscal position and healthy financial reserves to protect essential services.
Paid off unfunded liabilities utilizing over $54 million in Reserve Funds.
Maintained strict cost-containment measures across all departments while maintaining 911 emergency response, parks, and city facilities.

In light of ongoing infrastructure demands and heavy truck impacts, this measure offers voters a choice on whether non-ecommerce industrial operations should pay a dedicated share to support local street repairs, public safety, and general city services.

View the Perris Budget Presentation for more information on the City’s budget.

Frequently Asked Questions

Q: Will this measure tax residents or small local businesses?

A: No. This measure applies strictly to non-ecommerce industrial, warehouse, and manufacturing facilities in Perris with large truck activity and over 50,000 in total square feet. It does not tax residential homes, property owners, retail centers, or traditional small local businesses.

Q: How would this warehouse tax be calculated, and who pays it?

A: The proposed measure establishes a business license tax of up to 10 cents ($0.10) per square foot on non-ecommerce industrial, warehouse, and manufacturing facilities with large truck activity. It includes a Consumer Price Index (CPI) adjustment capped at 3% annually. This business license tax is paid exclusively by qualifying warehouse and industrial operators. It is not a property tax, not a sales tax on consumers, and does not apply to residential properties or traditional small local businesses.

Q: The City just adopted a new sales tax (Measure B), so why is this measure being considered now?

A: Voters approved a local transactions and use tax (Measure B) on the June 2026 Primary Election ballot. During the community engagement process for Measure B, residents frequently voiced concerns regarding the heavy traffic impacts of warehouses on local roads and asked how the City could ensure these facilities offset municipal costs. This measure gives voters the opportunity to choose an option specifically addressing those concerns.

Q: Why are certain ecommerce warehouses exempt from this warehouse business license tax?

A: Sales tax is the primary source of revenue for most cities. Many ecommerce-related warehouses located in Perris direct their sales to the City of Perris, generating substantial local sales tax revenues to support city operations. In contrast, non-ecommerce warehouses generate no sales tax revenue for Perris, yet their heavy trucks generate continuous wear and tear on local roads and require municipal services. This measure focuses on non-ecommerce facilities to ensure taxation is balanced without being overly burdensome.

“E-commerce facility” means a business operation, facility, building, separately identifiable portion of a building, outdoor operational area, or combination thereof principally used to receive, store, process, pick, pack, handle, stage, or ship goods ordered by end consumers through an online or electronic commerce platform for delivery directly to end consumers.

Q: How much revenue will this measure generate, and how will it be spent?

A: The measure is estimated to generate approximately $2,523,877 annually. Because this is a General Tax measure, 100% of the funds go into the City’s General Fund. Revenues will be deployed under the direction of the City Council during annual public budget hearings to fund essential city services, such as:

Repairing damaged streets, roads, and potholes
Maintaining 911 police, fire, and emergency response services
Improving traffic flow and pedestrian safety near industrial corridors
Supporting small business retention and local parks

Q: Will the money raised by this measure stay in Perris, or can the State take it?

A: 100% of the funds stay in Perris. By law, revenues generated by this measure are deposited directly into the City’s General Fund. The State of California, Riverside County, or other regional agencies cannot seize, redirect, or transfer these funds.

Q: How do I know the funds will be spent responsibly?

A: The measure requires mandatory public financial disclosures, annual independent audits, and public spending reports. Revenue allocation is reviewed publicly every year during open City Council budget hearings, ensuring complete fiscal transparency on how funds are used for road repairs, public safety, and general city services.

Q: How would the City track or verify which warehouses qualify vs. which are exempt?

A: The City of Perris monitors business licenses and land-use entitlements. Warehouse operations that demonstrate significant direct-to-consumer ecommerce activity route sales transactions locally, generating local sales tax for the City. Non-ecommerce facility operators, which utilize municipal infrastructure and public safety resources without generating local sales tax revenue, are subject to the business license tax.

Q: What happens if this measure does not pass?

A: If the measure is not approved by voters, the proposed business license tax on non-ecommerce warehouses will not go into effect. The City would continue to rely on existing General Fund revenues to maintain over 25.5 million square feet of industrial area impacts, and street maintenance or public safety funding would continue at current projected levels.

Q: When and where can I vote on this measure?

A: Perris voters will consider the measure on the November 3, 2026 General Election ballot. The County of Riverside Registrar of Voters conducts the election. Once Riverside County assigns an official letter designation to the measure, it will be updated on this webpage.

Q: How can I learn more and get involved?

A: Residents are encouraged to learn more about the ballot measure by attending an upcoming Town Hall. The City will be hosting one virtual and five in-person meetings to address questions about the proposed Perris Distribution Facilities, Industrial Business and Truck Yards Tax Measure. One meeting will take place in each district with a fifth meeting held in council chambers for an at-large purpose. Content at each meeting will be similar. The format will be a 30 minute presentation, follow by Q&A

For questions and more information, residents can reach out to: warehousebusinesstax@cityofperris.org.