With Measure E's apparent passage, Elk Grove moving quickly to collect the massive consumer tax increase



Even though Elk Grove's Measure E victory has not been certified, the City of Elk Grove is moving quickly to adopt an ordinance to collect the new source of sales tax revenue. The tax collection ordinance will be adopted at this Wednesday's city council meeting, which traditionally had been canceled in observance of the Thanksgiving holiday.

Measure E appears to have been approved by Elk Grove voters by 54 to 46 percent, according to tallies released on November 18. The measure will increase sales taxes collected by one percent on most purchases in the city and is expected to generate about $21 million annually initially. 

According to the staff report for the hearing, the new tax revenue will be allocated to the city's general fund. The report also notes a citizen's oversight committee will be established, although how those members will be selected was not disclosed. 

The city has long sought to increase taxes on Elk Grove purchases as a source of additional revenues. Although the city will not say how the money will be used, there have been murky promises it will be used for public safety.

With the additional one percent, Elk Grove will have a tax rate of 8.75 percent, which exceeds notoriously expensive San Francisco's rate, which is 8.625, but lower than Stockton's 9.0. Elk Grove now has the highest tax rate in Sacramento County, which it shares with Isleton, Rancho Cordova, and Sacramento. 

The tax rate in Citrus Heights, Folsom, and unincorporated Sacramento County remains at 7.75 percent, while Galt collects 8.25 percent.

According to the staff report, collection of the next tax will start on "the first day of the first calendar quarter commencing more than 110 days after the adoption of this Chapter, the date of such adoption {November 23] being as set forth below." This suggests the new tax collection will start on April 1, 2023. 

The meeting will be the last official session for city council members Stephanie Nguyen and Pat Hume, both of who sought higher offices instead of reelection during the November general election. Nguyen won the California Assembly District 10 seat and will take office on December 5, while Hume remains in a tight race for Sacramento County Supervisors District 5 against Cosumnes Community Services District Director Jaclyn Moreno. 

 

   


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