The San Diego City Council has unanimously approved a one-cent sales tax ballot measure, putting the decision to increase San Diego's sales tax from 7.75% to 8.75% in voters' hands. It would raise the city's sales tax, which is currently one of the lowest in the county, to one of the highest, though the sales tax in cities like L.A. and San Jose remains higher.
With people already pinched by inflation and the high cost of living, Replay Toys Boutique owner Kimberly Nabours wonders if this is the best time to toy around with a higher sales tax.
“I just paid sales tax, my quarterly sales tax and it was huge," Nabours said. “I feel like it might be hard for people to accept another penny, even if it's just a penny on a dollar. It adds up really fast.”
City Councilmember Raul Campillo agrees that every penny counts. The city said the increase would double the amount of revenue it collects from sales taxes, with the money going to fund infrastructure projects, some of which have been neglected for decades. The Independent Budget Analyst said a new revenue stream is necessary to prevent the city from sinking into an even deeper budget deficit next year.
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“Every single district in the city of San Diego — north, south, east and west — all of the council members know that we need more revenue to invest in the neighborhood infrastructure that we want to spend this money on,” Campillo told NBC 7's Joey Safchik on Politically Speaking this week.
Now that the stormwater ballot measure is not moving forward, Campillo said, some of the funds from the sales tax would flow into storm-drain infrastructure improvement projects.
“We've invested in public safety, police officers and firefighters, things that protect our daily lives" said Campillo when asked why voters should have confidence the city will live up to its promises. "It's the quality of life that is going to improve if voters support the sales tax measure."
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The San Diego County Taxpayers Association may not be buying into the increase. President Haney Hong has yet to announce whether it will support the increase in San Diego but said it has closely scrutinized the measure and is resistant to its lack of a sunset clause.
"The city of San Diego has a trust deficit," Hong said. "They haven't earned the trust of taxpayers. They haven't earned the trust of voters, that money is going to be spent well, spent wisely."
Ultimately, the voters will decide whether the increase is in order. Nabours, the North Park small business owner, is not yet decided. She said arguments from both sides will play into her decision.
“We appreciate what they have been doing with repaving the streets," Nabours said. "A little bit further on each end would be fabulous."
