City of Atascadero General Sales Tax Increase, Measure F (November 2014)

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A City of Atascadero General Sales Tax Increase, Measure F ballot question was on the November 4, 2014 election ballot for voters in the city of Atascadero in San Luis Obispo County, California. It was approved.

Measure F authorized the city to increase its sales tax rate by 0.5 percent for 12 years. The chief purpose for this tax, as provided by the city council, was to fund road repair and maintenance in the city. The tax, however, was designed as a general tax, which meant revenue from the 0.5 percent sales tax increase was set to go into the city's general fund to be used for any governmental purpose. There was a non-binding, advisory question, Measure E, on the ballot alongside Measure F. The advisory question asked voters if they approved of the city using Measure F revenue on "repairing and maintaining neighborhood roads and other roadways." Measure E was approved.

Without Measure F, the total sales tax rate in the city would have remained at 7.5 percent. This rate was the minimum rate imposed by state law in 2014. Measure F was designed to increase the total city sales tax rate to 8 percent for 12 years.

Election results

City of Atascadero, Measure F
Result		Votes	Percentage
a Yes		5,342	59.14%
No		3,691	40.86%

Election results via: San Luis Obispo County Registrar of Voters

Background

See also: Sales tax in California

In California, a special sales tax with revenue dedicated to a specific purpose, such as road repair, requires a two-thirds (66.67%) vote for approval. Sometimes, as an alternative, a local government will put a general tax - which has no dedicated purpose - on the ballot along with an advisory question concerning the use of revenue from the proposed tax. This allows the measure to pass with a simple majority.

Text of measure

Ballot question

The question on the ballot:

“

To provide funding that cannot be seized by the State, and will stay in Atascadero to be used for such things as the repair of neighborhood roads and aging roadways along with other vital City needs - Shall the City of Atascadero’s sales tax rate be temporarily increased to include a local general sales tax of one-half cent, for a period of 12 years, with citizen committee oversight, published annual reporting and independent financial audits?

”

Impartial analysis

The following impartial analysis was prepared for Measure F:

“	In June 24, 2014, the Atascadero City Council voted unanimously to place Measure F-14 on the ballot. Measure F-14 asks the voters to enact a one-half of one percent (½ of 1%) transactions and use tax rate on retail sales within the City of Atascadero. If approved, this tax will add 50 cents to each $100 of taxable sales. California Revenue and Taxation Code section 7285.9 authorizes the City of Atascadero to levy a General Transactions and Use Tax (i.e. sales tax) so long as the tax is approved by two thirds of the City Council and a majority of the voters voting in an election on that issue. If approved by the voters, the tax would become effective on April 1, 2015. The proposed tax would be a “general tax,” meaning that revenues raised from the tax would go into the City’s general fund to fund any lawful City program, improvement, or service, including, but not limited to, the repair of neighborhood roads and aging roadways and other vital City services. The City would not be required to use the revenues raised by the measure for any special purpose or for any particular program or service. Measure F-14 contains the following fiscal accountability provisions to assist citizens in assessing if the additional sales tax revenues have been used in meeting community priorities: 1) a permanent “Citizens’ Oversight Committee” shall annually review revenues and expenditures from the collection of the tax; 2) an Annual Road Report shall be prepared by the City no later than the last day of the sixth month following the end of each City fiscal year and submitted to the Citizens’ Oversight Committee for review, and the Committee will submit their findings and conclusions to the City Council; and 3) the amount generated by the new revenue source and how it was used shall be included in the annual audit of the City’s financial operations by an independent certified public accountant. The proposed tax will sunset and be repealed in twelve (12) years and could not be collected after that time unless a majority of the voters voting in an election on that issue approves an extension or reauthorization of the tax. The proposed tax would be paid in addition to the current sales tax. Like the current sales tax, the proposed tax would be imposed upon the sale of all tangible personal property sold at retail within the City of Atascadero, as well as upon the storage, use or other consumption of tangible personal property purchased from any retailer within the City of Atascadero. The current sales tax rate within the City (including state and local sales taxes) is seven and one-half percent (7.5%). If this measure is approved by voters, the total sales tax within the City of Atascadero will be eight percent (8%). The proposed tax would be applied equally to residents and nonresidents making purchases in the City of Atascadero.	”
—Brian Pierik, Atascadero City Attorney

Support

Fix Atascadero Roads campaign image

Supporters

A campaign called Fix Atascadero Roads was created to urge voters to approve Measure F and Measure E.

The following individuals signed the official arguments in favor of Measure F:

• Tom O’Malley, Atascadero Mayor
• Roberta Fonzi, Atascadero City Council Member
• Grigger Jones, chairman of the Atascadero Chamber of Commerce
• Edith “Edie” Knight
• Edward A. Veek

Arguments in favor

The following was submitted as the official arguments in favor of Measure F:

“	Atascadero is rapidly approaching a road crisis in our neighborhoods. Over the last several years we have not been able to devote adequate resources toward the maintenance of our roads. Over Fifty-Six (56%) percent of our City maintained roadways are currently in fair or poor condition meaning that they are badly in need of repair and maintenance. If we do not come together as a community to address this problem our roads will continue to rapidly deteriorate. To address this need the City Council unanimously put Measure F-14 on the ballot to increase the local sales tax one half cent for twelve years. The funds raised will be used in Atascadero for the maintenance and repair of our neighborhood roads. Safeguards have been put into the measure to ensure that the funds are used wisely and only used to fix our roads including: Measure E-14 was put on the ballot so Atascadero can direct that the money will be spent to fix our neighborhood roads. A citizen Advisory Committee will be created to oversee how the funds are spent. An annual roads report and an annual independent audit will be prepared and distributed to residents. The additional sales tax will “sunset” (be eliminated) after twelve years. The funds cannot be seized by the state and they must be spent locally in our community. The State and the County do not have the resources to maintain our roads. We must come together as a community and solve this problem. Please join us in voting Yes on Measure F-14.	”
—Tom O’Malley, Roberta Fonzi, Grigger Jones, Edith “Edie” Knight and Edward A. Veek

Opposition

Opponents

John Paul Daly signed the official arguments in opposition to Measure F.

Arguments against

The following was submitted as the official arguments in opposition to Measure F:

“	Better roads good! Higher taxes bad! Can Atascadero voters reconcile this dilemma? YES, they can. Political leadership with integrity can direct the city's resources to establish priorities that best serve the public. Streets should be at the top of that list. Everybody uses and depends on them. But the roads lack a vocal constituency. No throng of parents wanting playgrounds, no employee unions, and no organization of business or labor show up to defend streets. So the council allocates money to appease the loudest demands. Roads, arguably the most ubiquitous and important service for which the city is responsible, ends up with a paltry 8% of the annual budget. Atascadero voters deserve decent streets and officials with the spine to protect them. The voters do not deserve yet higher taxes. Please vote NO on Measure F-14.	”
—John Paul Daly

Related measures

a City of Atascadero Sales Tax Increase Revenue Spending Advisory Question, Measure E (November 2014)

See also

• Sales tax in California
• Local sales tax on the ballot
• San Luis Obispo County, California ballot measures
• November 4, 2014 ballot measures in California

External links

Suggest a link

• San Luis Obispo Elections Office website

Support

• Fix Atascadero Roads website, accessed October 22, 2014