Front Page  »  

Arroyo Grande City Council votes to increase sales tax, needs voter approval

May 31, 2024

By KAREN VELIE

The Arroyo Grande City Council on Tuesday voted to place a referendum on the Nov. 5 ballot to increase the sales tax by 1%, which city staff estimates will result in $6 million a year in additional revenue.

After discussing the need for added funding for staff salaries, aging infrastructure and road repairs, the council voted to seek public approval to raise the sales tax. The proposed 1% sales tax increase is set to sunset in ten years.

If passed, the resolution will raise the sales tax rate in Arroyo Grande from 7.75% to 8.75%. The city already has its own .5% sales tax rate, which is added to the statewide rate of 7.25%.

Two of the three public speakers at Tuesday’s meeting were opposed to the proposed tax, noting the financial difficulties many residents are currently facing. One speaker, former city councilman Keith Storton, argued the city’s tax is lower than neighboring cities and the need to stay competitive regarding staff salaries.

The referendum requires two-thirds voter approval.

In 2022, Arroyo Grande voters rejected a sales tax increase with 54.36% opposed and $45.64% in favor.

 


Loading...
Subjects:     
Related:


14 Comments
Inline Feedbacks
View all comments

It is time for government officials to stop voting to raise salaries for management and officials, it is unsustainable. Cut the workforce in half and stop having positions, such as public relations, to make yourselves look good.


27

BTW, this is not a 1 % increase in taxes. Do the math. This is a 12.9% increase in sales tax.

So…if you buy a car at 30,000 the current sales tax will be 2,325.00. After this increase, it will be 2,625 an increase of 300.00. Don’t think you can buy the car in a lower sales tax jurisdiction. The state calculates this based on where you live. Vote NO


20

Actually it is a 40% tax increase for the City. The statewide tax rate is 7.25%. Of that, 1% is the City’s “component”. The City’s current tax rate is 7.75% which means the City already has an additional 0.5% local sales tax bringing the total tax going to the City up to 1.5% of the 7.75% sales tax. So, if the tax rate jumps to 8.75% with the City then getting 2.5% of that, it is a 40% tax increase for the City.


0

Would immediately recall all politicians that vote for a tax increase.


40

Same old Tax and Spend. Vote no.


51

Nope. I hope 2024 mirrors 2022, where residents vote no.


50

No


45

Opressive taxation is a great way to kill the economy.


11

The Arroyo Grandy city council and city administration needs to do some work to operate within the financial constraints of the present tax structure.

Our governments have become as lazy and entitled as the people on social assistance. Sure, it’s not easy to manage within your means but it’s time to put your hands to work and stop digging into the taxpayers’ pockets every time you overspend.

The only way to limit government is to limit taxes. Vote no on all tax increases, the financial crisis you prevent may be your own.


71

Here’s an idea. Reduce salaries by 10%. Forgo a tax increase and take a bite out of already too-high salaries, pensions and benefits. Has this idea EVER occurred to ANY decision-maker in California?


64

Gubmint employees all overpaid and underworked and have way too many BS paid holidays nobody in the private sector gets….parasites


21
1 2