Sales Tax Hikes Could Give Elk Grove Highest, Most Burdensome Rates in Sacramento County

July 23, 2016 | 

On Wednesday night the Elk Grove Grove City Council will discuss the possibility of asking voters for more money by placing either a full one cent or one-half cent sales tax increase on the November ballot.

The staff report on the matter analyzes not only data from several polls gauging voter support of the proposal commissioned by the City since November 2015, it examines the possibility of voter approval in conjunction with the Sacramento Transpiration Authority's (STA) Measure B. That measure seeks a 30-year countywide one-half cent sales increase to fund specified repair and new transportation projects in Sacramento County.

Additionally, the report noted that STA's Measure B will require a super majority 66-percent for approval and that surveys have revealed the chances of approval of a sales taxes for specified uses, which also requires a 66-percent approval, in Elk Grove would be slim. Noting the City's numerous funding problems, the report recommends the sales tax increase be for unspecified uses at the discretion of the Elk Grove City Council and thus would only need a simple majority for approval.

While the surveys measured the City's possible tax increase in association with STA's initiative, it does not appear to have examined what affect the Elk Grove Unified School District bond measure might have. If approved the school district's measure would add $38 in taxes per $100,000 in assessed real property value.  

If the Elk Grove one-half cent sales tax measure is placed on that ballot and wins voters approval, it is expected to generate $9.5 million annually. If passed with the STA measure, Elk Grove taxpayers will be paying a full one percent more in sales taxes on non-food items purchased in city limits.

Another possibility explored in the report would be to seek a one-percent sales tax in Elk Grove. If that increase is placed on the ballot and wins approval along with STA's Measure B, Elk Grove will have the highest sales tax rate in Sacramento County at 9.25-percent compared to three municipalities at 8.75-percent and three at 8.25-percent. (See table below).

Wednesday night's meeting starts at 6 p.m.

Click to enlarge table.

Elk Grove sales tax increase

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Josie said...

"the report recommends the sales tax increase be for unspecified uses at the discretion of the Elk Grove City Council".

I believe the name for that is "slush fund". It is my belief that the taxpayers of this city are tired of being the "slush fund" for this City Council and it's due time they cleaned up their act and do the work they were elected to do. Being fiscally responsible and accountable to the citizens of our community might be a good starter. You think this is bad, wait until you see the other item on the Agenda...they've spent it on themselves before its even collected. Thinking we're on a downward spiral so hold onto your wallets.

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