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Nine cities in the East and South Bay areas have local sales tax measures on Tuesday’s ballot.
Those taxes would stack on top of the base sales taxes levied by the state, county taxes and in some cases existing city taxes.
Here’s how it works:
• State sales tax is 7.25%. The state keeps 6%, 0.25% goes to county transportation funds, and 1% usually goes to cities.
• Counties add 1.5% to 3% for items such as transportation, county services and health care. Currently, Alameda County adds 3%, the most of any California county; Contra Costa County adds 1.5%; and Santa Clara County adds 1.875%.
• Cities can add more. Seven Alameda County cities have added 0.25% to 0.5%. In Contra Costa County, most cities have added 0.5% to 1.5%. Some Santa Clara County cities have added up to 0.25%.
Alameda County’s state-record 3% addition explains why it has six cities at 10.75%, the highest sales tax rate in the state. But one Contra Costa city has also eclipsed 10%, and another aims to do so in Tuesday’s election.
To translate into real money, a 10% sales tax equates to 10 cents for every dollar of purchases, $100 on a $1,000 television set, or $4,000 on a $40,000 car. In California, sales tax applies to purchases of tangible personal property. Prescription medicines and most groceries are exempt.
Here are our recommendations on the nine city sales tax measures in Alameda, Contra Costa and Santa Clara counties:
Alameda County
K1 – Hayward – No
Hayward is one of the six Alameda County cities that leads the state with a total sales tax rate of 10.75%.
That includes the city’s existing 0.5% levy, which Hayward voters added in 2014. The city share expires in 2034. Measure K1 would extend it to 2054.
Much like with the 2014 measure, which we supported, Hayward officials plan to use the Measure K1 extension for capital projects and operational services. For the capital projects, they are hoping to borrow money and repay with sales tax revenue.
City officials should pare back their list of projects, which they have yet to finalize, so they can borrow money for a shorter length of time.
An extension of the sales tax until 30 years from now is just too long. Sales taxes should have shorter sunset periods so voters can weigh in on the necessity. Voters should reject Measure K1.
PP – Pleasanton – Yes
Measure PP would add 0.5% to the sales tax in Pleasanton for 10 years, bringing the total, when combined with the state and Alameda County portions, to 10.75%.
That would tie Pleasanton with six other Alameda County cities for the highest total sales tax rate in the state. That’s not the cities’ fault; blame Alameda County.
Pleasanton needs the $10 million that Measure PP would bring in each year. City costs have risen faster than revenues. Forecasts show the city faces a cumulative deficit over the next eight years of $110 million.
Measure PP has drawn strong opposition. But …read more
Source:: The Mercury News – Entertainment
