City of Fortuna "Budget Stabilization" Sales Tax, Measure V (November 2014)

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A City of Fortuna "Budget Stabilization" Sales Tax, Measure V ballot question was on the November 4, 2014 election ballot for voters in the city of Fortuna in Humboldt County, California. It was defeated.

If approved, Measure V would have authorized the city to impose a 1 percent sales tax. The tax would have been a general tax, which means revenue would have gone into the city's general fund and could have been used for any governmental purpose. The approval of Measure V would have resulted in a total sales tax rate in the city of 8.5 percent, 7.5 percent for the state sales tax and 1 percent for the city.

County voters also decided Measure Z in November, which sought a half-cent sales tax. Since Measure Z was approved and Measure V was not, the total sales tax rate for city residents was set at 8 percent.

Without the approval of Measure V or Measure Z, the only sales tax paid by Rio Dell City residents would have been the state sales tax of 7.5 percent.

Election results

Fortuna City Measure V
Result		Votes	Percentage
d No		1,966	63.48%
Yes		1,131	36.52%

Election results via: Humboldt County Elections Office

Text of measure

Ballot question

The question on the ballot:

“

To offset state budget cuts and restore stability to Fortuna's city budget; maintain 9-1-1 emergency response services; restore cuts to police protection, gang/drug prevention, and road/sidewalk maintenance; support local businesses, the Fortuna Rodeo and AutoXpo; and maintain other essential general services, shall the City of Fortuna establish a one cent sales tax, requiring independent annual financial audits and public review, with all funds remaining in Fortuna?

”

Impartial analysis

The following impartial analysis was prepared for Measure V:

“	The City Council of the City of Fortuna placed Measure V on the ballot to ask the City’s voters to approve a one percent (1.00%) transactions and use tax. The proposed tax would add a penny to the price of an item that costs a dollar. Because Measure V would not limit the use of tax revenue, it is a “general tax,” not a “special tax” that restricts the funds to specific purposes. Therefore, the City may use the funds for any legitimate governmental purpose. At the time that the City Council called for an election on Measure V, it also found that the revenue from the measure would provide a source of funding to address community priorities including: maintaining police protection services; maintaining 9-1- 1 and emergency response; maintaining rapid response to illegal drug use; maintaining local business support and community event services; and restoring cuts to police protection. The measure would authorize the City Council, by a four-fifths vote, to terminate the tax at any time. Measure V would require the formation of an independent community oversight committee to review the expenditure of the revenue from the tax. The committee would consist of five members appointed by the Mayor and approved by the City Council. Separately, the City’s independent auditors would annually prepare a separate accounting of the revenue received from the tax and the expenditures of revenue to be included the City’s audited financial statements. Currently, the total “sales tax” rate in Fortuna is 7.5%. The City’s share is only 0.75% of that 7.5%. Technically, the proposed measure is a “transactions and use tax.” A transactions and use tax is levied on the same purchases as the existing sales tax, with some minor exceptions. Retailers and other merchants collect the tax at the time of sale and remit the funds to the State Board of Equalization, which administers the tax. The State Board of Equalization then transmits the funds collected to the City. Measure V would authorize a 1% transactions and use tax, increasing the total sales tax rate in Fortuna to 8.5%. Revenue from the tax would go to the City’s general fund and be available to support the full range of municipal services. A “Yes” vote is a vote to approve a one-cent sales tax with annual review by independent auditors and a community oversight committee. A “No” vote is a vote against the tax. Measure V would be approved if it received a simple majority of “Yes” votes.	”
—David Tranberg, Fortuna City Attorney

Support

Supporters

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

• Douglas F. Strehl, mayor of Fortuna
• Robert E. Johnson, president of Fortuna Pharmacy Inc.
• James N. Stanfield, a concerned citizen
• Corinne L. Stanfield, Fortuna citizen
• Chuck Acridge

Arguments in favor

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

“	Vote YES on V-- create jobs and a thriving local economy with funds that can’t be taken by Sacramento! Our tradition of fiscal prudence has helped Fortuna avoid the budget problems of other cities. But now, Sacramento money grabs have taken their toll and no one else will help us unless we help ourselves. YES on V provides local funding – Sacramento, federal and county government won’t be able to touch a dime of this money! Our region used to thrive with industries such as timber and fishing. But now those industries are gone. YES on V provides the local funding our city and its businesses need to create jobs and a thriving local economy. Stop the regional drug culture threatening to make its way to Fortuna! YES on V helps restore cuts and gives our Fortuna Police force the officers and tools to keep our children away from drugs, reduce crime and keep our City safe. YES on V gives Fortuna a fiscally responsible solution to our budget problems. YES on V supports small businesses in the City, while sustaining our property values. YES on V hires a police officer for the County drug prevention task force to help keep the drug culture out of Fortuna. YES on V restores a school police officer to assist with disturbances and preventing drug use. YES on V supports events like the Fortuna Rodeo and AutoXpo, bringing more events and visitors to our City. YES on V is fiscally accountable! By law, funds are spent locally in Fortuna, and cannot be taken by Sacramento politicians. Annual independent financial audits and an Independent Citizens’ Review committee will monitor spending and ensure funds are used as promised to you, the voter. (quote)	”
—Douglas F. Strehl, Robert E. Johnson, James N. Stanfield, Corinne L. Stanfield and Chuck Acridge

Opposition

Opponents

Daniel Coleman signed the official arguments in opposition to Measure V.

Arguments against

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

“	As a citizen of Fortuna, I would like to voice my opposition to the proposed increase to our city’s sale tax. We have been promoting our city as a place to do business. We need to focus on being viewed as a business friendly city. Lets not be short-sighted! Raising our sales tax to a rate higher than local surrounding cities will dissuade businesses from considering Fortuna as a place to locate. Raising the city’s sales tax is an ill-considered idea Recently, two new businesses have come to Fortuna with another business adding a large amount of sales space.. This will certainly add to sales tax revenue without adding any additional sales tax to our purchases. Do most families in Fortuna have to live within a budget? You bet they do! Even with a $5 million surplus, the city leaders want you to dig deeper into your pocket so that they can spend more. Of course, the excuse to raise taxes is public safety! But apparently, the biggest objective of the tax increase is to build an even bigger surplus than we already have. Just say NO! NO to increasing the sales tax in Foruna! NO to the Fortuna Budget Stabilization Measure!	”
—Daniel Coleman

Related measures

a Humboldt County Sales Tax, Measure Z (November 2014)

See also

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

External links

Suggest a link

• Humboldt County Registrar of Voters Office website
• Fortuna City Government website