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City of Rancho Cordova General Sales Tax, Measure H (November 2014)

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A City of Rancho Cordova General Sales Tax, Measure H ballot question was on the November 4, 2014 election ballot for voters in the city of Rancho Cordova in Sacramento County, California. It was approved.

Measure H authorized the city to impose an additional sales tax at a rate of 0.5 percent. Since no explicit expiration date was included in Measure H, the tax was designed to continue indefinitely until city electors or the city council vote to cancel it.[1]

The tax was developed as a general tax, which meant revenue from the tax increase - estimated at $5 million per year - would go into the city's general fund and could be used for any purpose, rather than being restricted to a specific purpose or fund.[1]

Supporters of the tax argued that it would provide significant funds to the city to improve services and infrastructure and continue to move Rancho Cordova forward.[1]

Opponents said that if city officials really wanted to increase safety and do away with "blight" as the ballot language claimed, they should have proposed a special tax dedicated to these purposes and included an expiration date so taxpayers were not saddled with a perpetual tax.[1]

Without Measure H, the sales tax rate in the city would have remained at 8 percent. The state-mandated sales tax rate, as of 2014, was 7.5 percent, only 1 percent of which went to the city, and the sales tax collected by the county for transportation expenditures amounted to 0.5 percent. Measure H brought the total rate in the city up to 8.5 percent.[1]

Election results

City of Rancho Cordova, Measure H
ResultVotesPercentage
Approveda Yes 8,092 61.45%
No5,07638.55%

Election results via: Sacramento County Registrar of Voters

Text of measure

Ballot question

The question on the ballot:[1]

To enhance City services, facilities and programs, including: enhancing anti-gang/youth violence prevention programs; increasing neighborhood police patrols; fixing streets faster; expanding children/teen after-school programs; removing blight/revitalizing vacant buildings along Folsom Boulevard; building community facilities for seniors/working adults/children; and other general city services; shall the City of Rancho Cordova enact a 1/2 cent sales tax, that cannot be taken by the State, requiring annual audits and all funds be spent in Rancho Cordova?[2]

Impartial analysis

The following impartial analysis was prepared for Measure H:[1]

The City Council of the City of Rancho Cordova placed Measure H on the ballot to ask the City’s voters to approve a one-half of one percent (0.50%) transactions and use tax. The proposed tax would, for example, add a half-cent to the price of an item purchased for $1, or 50 cents to the price of an item purchased for $100.

In placing Measure H on the ballot, the City Council explained that a recent survey shows residents of Rancho Cordova are happy with their quality of life. According to a report on Measure H prepared by the City staff, the tax would provide over $5 million for the City per year, significantly increasing the City's ability to address community priorities. Measure H would not limit the use of the tax revenue; it is a "general tax," not a "special tax" that restricts the funds to any specific priorities or purposes. The City may use funds from the tax for any legitimate governmental purpose.

The proposed tax would continue until repealed by a majority vote of the voters of the City, or until repealed or suspended or by a majority vote of the City Council.

Measure H requires an annual audit by an independent auditor of the revenue received from the tax. The audit is not required to separately identify what the proceeds of the tax are used to purchase. The auditor’s report must be presented to the Council and made available to the public.

The statewide sales tax rate is 7.5% only a very small portion of which is distributed to counties and cities. Voters in Sacramento County have approved an additional half-cent tax for transportation and maintenance and improvements, bringing the current sales tax rate in Rancho Cordova to 8%. If Measure H is approved by voters, Rancho Cordova's sales tax rate would increase to 8.5%.

Technically, the existing “sales tax” is a combination of “sales and use tax” and “transactions and use tax.” With some exceptions, both are levied on the sale or use of tangible personal property sold at retail. Retailers collect the tax at the time of sale and remit the funds to the State Board of Equalization, which administers the tax.

Measure H would authorize a 0.50% transactions and use tax, increasing the total sales tax rate in Rancho Cordova 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 half-cent sales tax. A “No” vote is a vote against the tax. Measure H would be approved if it received a simple majority of “Yes” votes.[2]

—Adam Lindgren, Rancho Cordova City Attorney[1]

Full text

The full text of Measure H is available here.

Support

Note: On the official voter pamphlet information provided for Measure H and referenced in this article, a "rebuttal to argument against Measure H" was submitted as a "rebuttal to argument in favor of Measure H" leading to an argument in favor of Measure H being displayed where one would expect an argument against. This error was also made on voter pamphlets mailed out to voters.

Supporters

The following individuals signed the official arguments in favor of Measure H:[1]

  • Guy Anderson, Cordova High School Baseball Coach
  • Kevin Mickelson, president of the Sacramento County Deputy Sheriffs’ Association
  • Karen Anderson, Rancho Cordova Business Owner
  • Zak Ford, president of the Folsom Cordova School Board
  • Robert J. McGarvey, Rancho Cordova Vice-Mayor
  • Mark Baxter, Rancho Cordova Deputy Sheriff
  • George Burnash, Rancho Cordovan of the Year 2014

Arguments in favor

An official argument in favor of Measure H:[1]

Measure H is supported by a broad coalition of dedicated homeowners, community leaders, and business owners because we are proud of Rancho Cordova and are willing to work to make our city better. Voting Yes on Measure H keeps our city moving in the right direction.

Yes on H is about local control. We voted to become a city so we could take control of what happened in Rancho Cordova. We became a city to guarantee that local money stayed right here in our neighborhoods. No funds generated by Measure H can be taken by the State or County.

Measure H is the necessary next step for our City, directly benefiting everyone in Rancho Cordova, allowing our proud city to invest in youth violence prevention, improve police protection, and expand community centers and parks.

Local business owners know that to attract new business, restaurants, and entertainment, we need to revitalize Folsom Boulevard. Rancho Cordova homeowners know that to reduce crime and to increase property values, we need to revitalize the Folsom corridor and improve neighborhood policing. Measure H provides us with the resources to directly address areas in Rancho Cordova that we all agree need improving.

If you believe that Rancho Cordova is headed in the right direction and want to take this opportunity to make the improvements that our community deserves, please stand alongside your neighbors and vote Yes on Measure H. Join us as we show our hometown pride and vote Yes on Measure H.

The undersigned proponent(s) or author(s) of the primary rebuttal argument in favor of ballot measure H at the General Municipal Election for the City of Rancho Cordova to be held on Tuesday, November 4, 2014 hereby state this argument is true and correct to the best of their knowledge and belief. [2]

—Robert J. McGarvey, Mark Baxter, Zak Ford and George Burnash[1]

Opposition

Opponents

The following individuals signed the official arguments in opposition to Measure H:[1]

  • Steven Vincent
  • Lynn Keay

Arguments against

The following was submitted as the official arguments in opposition to Measure H:[1]

Vote NO because this 8.5% sales tax will make Rancho Cordova more expensive than our neighbors: Citrus Heights, Folsom, Fair Oaks, Carmichael, Elk Grove, Orangevale. This will hurt Rancho Cordova, extracting over $5 million per year from the local economy draining local businesses and jobs.

Vote NO because this is a blank check for local politicians with no expiration. The measure is misleading, with no requirement it be spent on "safety", "blight", or the items mentioned. Let the City Council put a 'special tax' with expiration on the ballot instead so there will be accountability hour funds are spent.

Vote NO because last year City Council gave $6.4 million in public assets to a private company (not based in Rancho Cordova) as part of a risky investment which has not seen returns. They are already asking the public to pay more, when those millions could have been prioritized for "safety" or "blight".

Vote NO because City Council is not demonstrating fiscal responsibility to be trusted with a blank check. Any increase in the tax rate simply accelerates the rate of City spending. City leaders must be accountable to prioritize spending from revenue under the existing tax structure. [2]

—Steven Vincent and Lynn Keay[1]

See also

External links

Footnotes

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 Sacramento County Elections Office website, "Ballot information for Measure H," archived October 3, 2014
  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.