City Council considers sales tax hike for November ballot
Would you pay another 80¢ for $80 worth of goods from American Canyon stores? It’s a small number, but could have a big impact, adding $3.7 million to the city’s general fund for city services — like 911 dispatch, trash clean-up and parks.
Raising the sales tax 1% is an idea city officials will consider adding to the Nov. 3 ballot this month.
“You don’t have to do anything tonight,” City Manager Jason Holley told councillors at Tuesday night’s City Council presentation. But, he said, there is a deadline: “You would have to take action no later than June 16.” More information on the potential tax measure can be read here.
American Canyon sales tax currently stands at 7.75%. Today, if you spend $200 at Adobe Lumber, an extra $14.50 is added on top. The rate is a little below the statewide average and lower than in neighboring cities like Napa and Vallejo.
If voters pass a 1% tax increase in November, American Canyon’s rate could be equivalent to Napa’s — 8.75%. That $200 purchase would come out to an even $217.50. Another option being shopped around by officials is a 0.5% sales tax increase, if voters outright reject 1%. Two hundred dollars would then come to $216.50, not much higher than the current rate.
“We should move forward with this soon,” urged Councilmember David Oro. “Go for one percent and let the city respond to it.”
Some 22,000 people live in American Canyon, but only around 9,000 typically vote. From April 5 to 16, some 267 city residents most likely to vote on Nov. 3 were randomly called by city-contracted polling firm FM3 for a survey about voting on a sales tax increase measure.
FM3’s findings were generally positive. About half of residents are happy with the city’s direction — an impressive number, according to researcher Richard Bernard.
When asked about a hypothetical tax measure, locals were split, and Highway 29 was the dividing line. Residents on the west side of Highway 29, where incomes are slightly lower, tended to be against the measure. On the east side, where incomes and taxes are higher, people were more likely to back it.
“People supporting extra tax will be [the ones] paying it,” Joseph pointed out about east side voters. But, he added, to make sure residents’ interests are met, “we’re going to have to beef up police budget.”
More voters were interested in backing a tax measure if it funded public safety and included rigorous financial accountability. In a public comment, resident Beth Marcus said: “I like this better than it going on our property tax. A lot of elderly people wouldn’t think it’s fair they’d be having this tax on their property.”
Still, said Bernard, when it comes to getting community support for a tax measure “there’s a lot of work to be done … but this is a good reflection of where your community is now.”
