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Santa Barbara moves forward with proposed sales tax increase

June 5, 2024

By KAREN VELIE

With a looming $7.1 million budget deficit, which is likely to increase to $10 million, the Santa Barbara City Council voted 6-1 on Tuesday to direct staff to create a resolution to place a sales tax increase on the Nov. 5 ballot. The council plans to approve the resolution on June 11.

Opposed to the sales tax increase, Councilwoman Alejandra Gutierrez said the timing is not right. Gutierrez cast the lone dissenting vote.

Santa Barbara currently has an 8.75% sales tax rate, which is equal to Santa Maria and San Luis Obispo and higher than Arroyo Grande’s 7.75% sales tax rate.

Santa Barbara staffers are hoping to increase the city’s sales tax rate by .5% in the November election. If passed, the resolution will raise the sales tax rate in Santa Barbara from 8.75% to 9.25%. The city already has its own 1.5% sales tax rate, which is added to the statewide rate of 7.25%.

 


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Tax the rich!! They can afford it.


0

There is no need to increase sales tax rates they are a percentage of the sale.

As consumer prices rise so does the tax that is collected, the same goes for property tax.

Look at the cost of living, vehicles, homes, fuel, utilities in the last 20 years. Government is flush with revenue, thus the wages and benefits they pay. Twenty years ago, workers were attracted to public employment for security and retirement, today mid and upper- level management are way above private industry.

What incentive dose our government have to keep prices affordable when they get a percentage of the inflated price?

How many million plus dollar homes have sold in the last 20 years, the tax base will jump 3-4 times what it was in 2004.


5

Wages have increased, so it’s an economic reality that taxes would also increase. Only time will tell whether small business will adapt. Some will, some won’t. However, in SB County I see very little chance of an economic downturn. In fact, the area has been virtually immune to most economic cycles in the recent past.


-26

Ok, so five down votes for stating the facts.


Please correct me where I’m wrong.


Otherwise, I’ll simply chalk it up to not wanting to hear the truth, which seems to be a typical stance of those who actually know nothing about economics and would vote me down if I declared the world was round or that evolution was a fact.


Oh, sorry, guessing many of you actually believe the world is flat and are quite sure that evolution is a liberal lie and Darwin was imaginary.


-20