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Chula Vista, California, Sales Tax Increase, Measure P (November 2016)

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Local ballot measure elections in 2016

Measure P: Chula Vista Sales Tax Increase
LocalBallotMeasures Final.png
The basics
Election date:
November 8, 2016
Status:
Approveda Approved
Topic:
Local sales tax
Amount: 0.5 percent
Expires in: 10 years
Related articles
Local sales tax on the ballot
November 8, 2016 ballot measures in California
San Diego County, California ballot measures
City tax on the ballot
See also
Chula Vista, California

A sales tax measure was on the ballot for Chula Vista voters in San Diego County, California, on November 8, 2016. It was approved.

A yes vote was a vote in favor of authorizing a 0.5 percent sales tax for 10 years, with revenue deposited into the general fund and resulting in a total sales tax rate in the city of 8.5 percent.
A no vote was a vote against this measure authorizing a temporary sales tax, thereby leaving the total sales tax rate in the city at 8 percent.

Election results

Measure P
ResultVotesPercentage
Approveda Yes 64,704 68.43%
No29,84531.57%
Election results from San Diego County Elections Office

Text of measure

Ballot question

The following question appeared on the ballot:[1]

To repair neighborhood streets and sidewalks, replace storm drains to prevent sinkholes, update police, paramedic and 9-1-1 equipment and facilities, improve parks, repair recreation facilities, and for general city services and infrastructure, shall the City of Chula Vista adopt an ordinance enacting a temporary ½ cent sales tax, generating an estimated $16 million per year, expiring in 10 years, with no further increases without voter approval, with all funds staying in Chula Vista, requiring citizen oversight and independent audits? [2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Chula Vista City Attorney:

Summary

If approved by voters, Measure P would impose a one-half cent ($.005) “transactions and use tax” (commonly known as a “sales tax”) on retail sales within the City of Chula Vista for a period of ten (10) years. The City’s Finance Director estimates the tax would generate approximately $16 million in year one, and $176 million over its 10 year term. The City Council has expressed its intent to spend these monies exclusively on City infrastructure, facilities and equipment. However, because the tax is a “general purpose” tax, the City Council would reserve the right to spend the tax revenues for any lawful City purpose. Measure P also includes provisions for separate accounting and citizen oversight.

Authority and Method of Assessment

Measure P’s sales tax would be levied under state law (Revenue and Taxation Code Section 7285.9). As such, it would be assessed and collected as a percentage of gross receipts from retail sales (and other taxable uses) occurring within the City in the same manner as the existing state sales tax. The current state sales tax rate is 8% of gross receipts. If the City sales tax were approved, the sales tax rate in the City would increase to 8.5%. The tax revenues generated from the additional .5% would go to the City (less a state administrative fee), and could only be spent for City purposes. If approved, the tax would commence on April 1, 2017, and expire 10 years thereafter.

Provisions for Intended Expenditures

Concurrent with its approval of Measure P for placement on the ballot, the City Council adopted an “Intended Infrastructure, Facilities and Equipment Expenditure Plan” (“Plan”) for Measure P revenues. By doing so, the City Council expressed its intent to spend Measure P sales tax revenues exclusively on City infrastructure, facilities and equipment. Within 30 days of voter approval, the Measure itself requires City staff to present for City Council action, specific projects and financing consistent with this Plan. Each year thereafter, City staff would be required to prepare a “Measure P Spending Plan” that is also consistent with this Plan, and present it for City Council consideration, in its discretion, as part of the City’s annual budget. A copy of the Plan is available on the City website at www.chulavistaca.gov/infrastructure.

Separate Accounting and Citizens’ Oversight

Measure P includes requirements for separate accounting, budgeting and auditing of tax collections and expenditures. It also requires creation of a citizens’ oversight committee (“COC”). The COC would be responsible for reviewing and reporting on Measure P annual accounting and spending plans, and would advise on “best practices.” The COC must be comprised of City residents with ranges of expertise, including accounting, finance and engineering.

General Purpose Tax

The City Council is submitting Measure P to the voters as a “general purpose tax.” This means that a majority of the voters must approve the Measure for it to go into effect. Although this City Council has expressed its intent to spend Measure P revenues exclusively on City infrastructure, facilities and equipment, the City Council will retain discretion to spend the revenues generated for any lawful municipal purpose. [2]

—Chula Vista City Attorney[3]

Full text

The full text of the measure is available here.

Support

Supporters

The following individuals signed the official argument in favor of the measure:[3]

  • Mary Casillas Salas, Mayor
  • David Bejarano
  • Jim Geering
  • Mark Twohey, Coach

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[3]

Measure P will make Chula Vista better, safer, and stronger. It will allow us to fix our streets, parks, sports fields, and fire stations, and protect our families by replacing an aging 9-1-1 dispatch system and buying new fire trucks and police cars.

Chula Vista is one of the best run cities in California, but is still feeling the pinch of the recession.

During that time, we laid off staff, reduced spending, and cut pensions without harming our quality of life. Over the past two years, we looked at every street, park, recreation center, and public safety vehicle. We discovered what most of us see every day. We have some critical needs that must be fixed.

Simply put, we do not have the funds to do this. We receive only 1 penny out of every 8 cents people pay in sales taxes. That just doesn’t allow us to address our city’s needs, even with the amazing efforts of our city workers. Measure P solves this problem with a temporary half-cent sales tax increase that ends after 10 years. These funds can only be spent in Chula Vista, and cannot be touched by politicians in Sacramento.

Measure P demands accountability and transparency. Funds raised by Measure P will have its own line item in our budget, so everyone can clearly see how the money is spent. In addition, a special citizen oversight committee will be established to ensure that the funds are spent properly.

Most importantly, you will see improvements immediately. We’ll improve streets, parks and sports fields within the first year. We will begin building two new fire stations, rebuilding other stations, and buying fire trucks and police cars right away.

Please join us by voting Yes on Measure P. For a better, safer, and stronger Chula Vista. [2]

Opposition

Opponents

The following individuals signed the official argument against the measure:[3]

  • Robert M. Santos, retired engineer
  • Michael Diaz, retired firefighter
  • Paula Whitwell, Secretary, Republican Party of San Diego County
  • Delia Dominguez Cervantes

Arguments against

Official argument

The following official argument was submitted in opposition to the measure:[3]

Vote No on the $160 Million Tax Increase Fraud

These taxes are NOT guaranteed to be spent on infrastructure. Measure ‘P’ is a General Tax and can be used on pensions and employee salary increases.

Read the fine print: this tax increase WILL be used for General Services or anything else the City Council desires. 65 city employees have retired with pensions of more than $100,000! That’s over $6.5 Million in retirement salaries each year!

Sales Tax Increase Hurts Our Families

Many families are still struggling. This $160 Million tax increase will hurt everybody, but especially those who can least afford it.

It hurts lower and middle income taxpayers the most. Cars, school supplies, clothes and other essential items will be more expensive. VOTE NO!

City Should Focus on Reform

Chula Vista is the ONLY City in the County to still maintain FULL pension spiking for employees.

Chula Vista has the highest Specialty Pay average of any city in San Diego County, averaging $1,719,199 per year, while other cities spend only $212,000 annually.

The Mayor is the sixth highest paid mayor in California receiving $186,785 in full compensation as compared to Mayor of San Diego who receives $115,974.

The City needs to implement real reform before they ask YOU to pay more taxes!

No Real Accountability

The Oversight Committee will have no teeth. The City Council can still spend your money on anything it wants. The committee will be an insiders’ club hand-picked by the Mayor and City Council.

Vote NO on Measure ‘P’!

Your current tax dollars should be spent on infrastructure, reducing traffic congestion and maintaining our sewer system. You already pay enough taxes on city pensions and government waste. Vote NO on this tax increase! Protect your paycheck! VOTE NO on P! [2]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the governing officials of Chula Vista, California.

Recent news

The link below is to the most recent stories in a Google news search for the terms Chula Vista Local sales tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

External links

Footnotes

  1. San Diego Registrar of Voters, "Local Measures for November 8, 2016," accessed September 29, 2016
  2. 2.0 2.1 2.2 2.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. 3.0 3.1 3.2 3.3 3.4 San Diego Registrar of Voters, "Measure P," accessed September 29, 2016