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Thread: Record number of local sales tax in California

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    Default Record number of local sales tax in California

    Interesting in that specific taxes for a purpose need a 2/3 voter approval to pass but if it's for the general fund it only needs a simple majority. So they frame ballot measures to look like they are going for something specific when in reality it isn't the case. So they could say this tax could be used for a new library when in reality it could go to pensions etc.




    Record number of local sales tax hikes take effect Saturday


    A record number of voter-approved local sales tax increases will take effect in California Saturday, raising the rate by one-quarter to a full percentage point in 42 cities, including eight in the Bay Area, and across seven counties, including Santa Clara and Sonoma.

    The statewide sales tax rate dropped by a quarter point on Jan. 1 to 7.25 percent. Local governments can, with voter approval, impose add-on sales taxes, generally up to 2 percentage points. A record number of cities and counties — 88 — asked voters in November to approve a sales tax increase or extend an expiring one. A record number — 66 — passed.

    In 17 cities, mostly in Southern California but also Suisun City in Solano County, the rate is going up by a full percentage point. In San Jose and Campbell, the rate is rising to 9.25 percent after a half-point increase in Santa Clara County to fund transportation, according to the state Board of Equalization.

    Why did so many pass? The drop in the statewide rate probably played a role. Also, local tax and bond measures usually succeed more often in presidential than in midterm election years, Michael Coleman said in a report on his website, CaliforniaCityFinance.com. Some data suggest that California voters think local government “is more in tune with (their) needs and more capable of solving problems” than federal or state governments, the report added.

    Finally, more cities are proposing add-on sales taxes that require only a simple majority to pass.

    In California, “special” sales taxes, those earmarked for a specific purpose, require a two-thirds majority. That’s a high hurdle. “General” sales taxes that go into the general fund require only a simple majority, though voters might not trust government to spend the money wisely.

    So a lot of local governments propose general sales taxes, but in the ballot text or in a companion measure, say they intend to spend the money on specific “things voters love,” such as libraries, parks, pothole repairs and public safety, said David Kline, a spokesman for the California Taxpayers Association.

    Voters “are persuaded by these very skewed arguments,” Kline said. “I have not seen one (ballot measure) that mentions” that the additional revenue could be used for employee salaries, pensions or benefits.

    Such measures have a high success rate. In November, 51 of 59 general sales tax measures passed. But only 15 of 30 special sales tax measures requiring a supermajority passed, according to Coleman.

    For example, Pleasant Hill’s ballot measure, which needed only a majority to pass and received 67 percent of the vote, asked: “To provide and maintain Pleasant Hill city services and facilities, including fixing potholes, and repairing neighborhood and city streets; replacing the aging library with a 21st century facility including space for after-school homework and tutoring; creating additional walking and biking paths; maintaining storm drains; and other city services; shall the City of Pleasant Hill levy a 1/2 cent sales tax?”

    When I asked Martin Nelis, spokesman for Pleasant Hill, for a list of potholes waiting to be filled with the new tax money, he couldn’t name any. When the city gets a call on its pothole hotline, “We try to fix it in 24 or 48 hours,” he said. The city plans to build a new library on land donated by the county, but it hasn’t been deeded over yet. As for repairing storm drains and creating new sidewalks and pedestrian paths “that’s not next year, that’s a 15- to 20-year project,” he said.

    “The City Council made it very clear, those are some of the top priorities for them,” Nelis said. “Having said that, the money does go into the general fund. It could be used for any purposes.”

    Cities “want to have their cake and eat it too,” said Timothy Bittle, director of legal affairs for the Howard Jarvis Taxpayers Association. “This is an increasingly popular strategy to evade the two-thirds vote requirement.”

    The association has been looking for a test case to challenge this practice, and found one in Ukiah. In November, voters there passed Measure Y, a half-percent sales tax increase, with 51.5 percent of the vote. They also passed companion Measure Z, which asked whether street repair and maintenance should be “the exclusive use” of the additional sales tax revenue.

    The Jarvis group is suing to invalidate the increase, saying it needed a two-thirds majority because the companion measure dedicated the revenue to streets.

    Ukiah City Attorney David Rapport said that because Measure Z was “advisory only,” it does not convert Measure Y from a general to a special tax. While the suit is pending, Ukiah retailers must collect the tax, but the city can’t spend it.

    Sales tax increases are most noticeable on big-ticket items. Even so, Brian Maas, president of the California New Car Dealers Association, does not think the impending increases will impact auto sales.

    On a $35,000 new car, a half-point increase amounts to $175. “That’s not nothing, but I don’t think it is going to dramatically change a consumer’s behavior,” he said. “It might change things if a consumer could only afford to put such and such down.”

    Bill Dombrowski, CEO of the California Retailers Association, is more critical of sales tax increases. “It’s the complete lack of recognition by government at all levels in this state what is happening in retail,” he said. “Customers don’t pay sales tax when they buy on the Internet. That has been killing bricks-and-mortar stores.”

    That’s an overstatement, because some online retailers do collect sales tax. As of Saturday, Amazon will be collecting sales tax in all 45 states that have one.

    In California, online retailers generally must collect tax on purchases shipped here if they have a physical presence or do a certain amount of business in the state. California consumers are supposed to voluntarily pay sales tax on untaxed out-of-state purchases, but most don’t.

    Valerie Lewis, owner of Hicklebee’s children’s bookstore in San Jose, said that sales tax “is an issue for us, except I like the idea of having libraries open, the idea of roads being open. I feel like we are really a community store, and the community has done a fabulous job supporting us. I think our customers are also people who like libraries and roads.”


    http://www.sfchronicle.com/business/...e-11034539.php

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    its good i think. We do have that laboratory of democracy thing. Let CA be the laboratory for insane taxes
    is on twitter @realtsuke

    https://tsukesthoughts.wordpress.com/

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    most Cali cities are getting ready to lose federal funding, so I fully understand this

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    Quote Originally Posted by coolbreeze View Post
    most Cali cities are getting ready to lose federal funding, so I fully understand this
    You're an idiot if you think that will really happen

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    Quote Originally Posted by Queen Snowflake View Post
    You're an idiot if you think that will really happen
    yea ok "snowflake"

    pay close attention to the next 8 years
    watch and learn

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    Quote Originally Posted by coolbreeze View Post
    yea ok "snowflake"

    pay close attention to the next 8 years
    watch and learn
    lol, you should pay attention now! 3 million people plus the 3% who already have regrets is more people who
    didnt vote for him. That has a bigly impact on his ability to pass legislation. His inability to pass legislation increases his
    disapproval rating.

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    Quote Originally Posted by cawacko View Post
    Interesting in that specific taxes for a purpose need a 2/3 voter approval to pass but if it's for the general fund it only needs a simple majority. So they frame ballot measures to look like they are going for something specific when in reality it isn't the case. So they could say this tax could be used for a new library when in reality it could go to pensions etc.




    Record number of local sales tax hikes take effect Saturday


    A record number of voter-approved local sales tax increases will take effect in California Saturday, raising the rate by one-quarter to a full percentage point in 42 cities, including eight in the Bay Area, and across seven counties, including Santa Clara and Sonoma.

    The statewide sales tax rate dropped by a quarter point on Jan. 1 to 7.25 percent. Local governments can, with voter approval, impose add-on sales taxes, generally up to 2 percentage points. A record number of cities and counties — 88 — asked voters in November to approve a sales tax increase or extend an expiring one. A record number — 66 — passed.

    In 17 cities, mostly in Southern California but also Suisun City in Solano County, the rate is going up by a full percentage point. In San Jose and Campbell, the rate is rising to 9.25 percent after a half-point increase in Santa Clara County to fund transportation, according to the state Board of Equalization.

    Why did so many pass? The drop in the statewide rate probably played a role. Also, local tax and bond measures usually succeed more often in presidential than in midterm election years, Michael Coleman said in a report on his website, CaliforniaCityFinance.com. Some data suggest that California voters think local government “is more in tune with (their) needs and more capable of solving problems” than federal or state governments, the report added.

    Finally, more cities are proposing add-on sales taxes that require only a simple majority to pass.

    In California, “special” sales taxes, those earmarked for a specific purpose, require a two-thirds majority. That’s a high hurdle. “General” sales taxes that go into the general fund require only a simple majority, though voters might not trust government to spend the money wisely.

    So a lot of local governments propose general sales taxes, but in the ballot text or in a companion measure, say they intend to spend the money on specific “things voters love,” such as libraries, parks, pothole repairs and public safety, said David Kline, a spokesman for the California Taxpayers Association.

    Voters “are persuaded by these very skewed arguments,” Kline said. “I have not seen one (ballot measure) that mentions” that the additional revenue could be used for employee salaries, pensions or benefits.

    Such measures have a high success rate. In November, 51 of 59 general sales tax measures passed. But only 15 of 30 special sales tax measures requiring a supermajority passed, according to Coleman.

    For example, Pleasant Hill’s ballot measure, which needed only a majority to pass and received 67 percent of the vote, asked: “To provide and maintain Pleasant Hill city services and facilities, including fixing potholes, and repairing neighborhood and city streets; replacing the aging library with a 21st century facility including space for after-school homework and tutoring; creating additional walking and biking paths; maintaining storm drains; and other city services; shall the City of Pleasant Hill levy a 1/2 cent sales tax?”

    When I asked Martin Nelis, spokesman for Pleasant Hill, for a list of potholes waiting to be filled with the new tax money, he couldn’t name any. When the city gets a call on its pothole hotline, “We try to fix it in 24 or 48 hours,” he said. The city plans to build a new library on land donated by the county, but it hasn’t been deeded over yet. As for repairing storm drains and creating new sidewalks and pedestrian paths “that’s not next year, that’s a 15- to 20-year project,” he said.

    “The City Council made it very clear, those are some of the top priorities for them,” Nelis said. “Having said that, the money does go into the general fund. It could be used for any purposes.”

    Cities “want to have their cake and eat it too,” said Timothy Bittle, director of legal affairs for the Howard Jarvis Taxpayers Association. “This is an increasingly popular strategy to evade the two-thirds vote requirement.”

    The association has been looking for a test case to challenge this practice, and found one in Ukiah. In November, voters there passed Measure Y, a half-percent sales tax increase, with 51.5 percent of the vote. They also passed companion Measure Z, which asked whether street repair and maintenance should be “the exclusive use” of the additional sales tax revenue.

    The Jarvis group is suing to invalidate the increase, saying it needed a two-thirds majority because the companion measure dedicated the revenue to streets.

    Ukiah City Attorney David Rapport said that because Measure Z was “advisory only,” it does not convert Measure Y from a general to a special tax. While the suit is pending, Ukiah retailers must collect the tax, but the city can’t spend it.

    Sales tax increases are most noticeable on big-ticket items. Even so, Brian Maas, president of the California New Car Dealers Association, does not think the impending increases will impact auto sales.

    On a $35,000 new car, a half-point increase amounts to $175. “That’s not nothing, but I don’t think it is going to dramatically change a consumer’s behavior,” he said. “It might change things if a consumer could only afford to put such and such down.”

    Bill Dombrowski, CEO of the California Retailers Association, is more critical of sales tax increases. “It’s the complete lack of recognition by government at all levels in this state what is happening in retail,” he said. “Customers don’t pay sales tax when they buy on the Internet. That has been killing bricks-and-mortar stores.”

    That’s an overstatement, because some online retailers do collect sales tax. As of Saturday, Amazon will be collecting sales tax in all 45 states that have one.

    In California, online retailers generally must collect tax on purchases shipped here if they have a physical presence or do a certain amount of business in the state. California consumers are supposed to voluntarily pay sales tax on untaxed out-of-state purchases, but most don’t.

    Valerie Lewis, owner of Hicklebee’s children’s bookstore in San Jose, said that sales tax “is an issue for us, except I like the idea of having libraries open, the idea of roads being open. I feel like we are really a community store, and the community has done a fabulous job supporting us. I think our customers are also people who like libraries and roads.”


    http://www.sfchronicle.com/business/...e-11034539.php
    Why should any of us who live in Commiefornistan care? It is federalism at its finest and I applaud it. You are getting what your constituents voted for. Don't like it? Move to another state.

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    Quote Originally Posted by I Love America View Post
    Why should any of us who live in Commiefornistan care? It is federalism at its finest and I applaud it. You are getting what your constituents voted for. Don't like it? Move to another state.
    People are free to vote tax increases on themselves if they wish. No problems there. What stood out was the sort of bait and switch done by the cities to get around the 2/3rds measure needed to pass specific tax increases.

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    Sales taxes should be abolished and replaced by progressive income taxes and taxes on capital.
    "Do not think that I came to bring peace... I did not come to bring peace, but a sword." - Matthew 10:34

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    We need a 10% yearly tax on all net wealths greater than 10% (and a 100% one time tax on all people in the United States bearing the last name "Trump). As well as a restoration of the top income tax bracket of 95%.
    "Do not think that I came to bring peace... I did not come to bring peace, but a sword." - Matthew 10:34

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    "Do not think that I came to bring peace... I did not come to bring peace, but a sword." - Matthew 10:34

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