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La Quinta, California, Sales Tax, Measure G (November 2016)

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Local ballot measure elections in 2016

Measure G: La Quinta Sales Tax
LocalBallotMeasures Final.png
The basics
Election date:
November 8, 2016
Status:
Approveda Approved
Topic:
Local sales tax
Amount: 1%
Expires in: Never
Related articles
Local sales tax on the ballot
November 8, 2016 ballot measures in California
Riverside County, California ballot measures
City tax on the ballot
See also
La Quinta, California

A sales tax measure was on the ballot for La Quinta voters in Riverside County, California, on November 8, 2016. It was approved.

A yes vote was a vote in favor of imposing a sales tax of 1 percent for 20 years to fund general city services.
A no vote was a vote against imposing a sales tax of 1 percent for 20 years to fund general city services.

Election results

Measure G
ResultVotesPercentage
Approveda Yes 8,233 54.73%
No6,80945.27%
Election results from Riverside County Elections Office

Text of measure

Ballot question

The following question appeared on the ballot:[1]

Shall an ordinance providing revenue, which the State cannot take, to be used locally for police protection; projects such as parks, streets, landscaping and flood control; programs attracting businesses; youth/senior services; sports/recreation programs; preserving property values and quality of life, by setting a permanent 1% transactions (sales) and use tax, subject to citizen oversight, raising six million dollars annually (estimated), with all funds dedicated to general City services, programs and projects, be adopted?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the La Quinta City Attorney:

The City Council of the City of La Quinta has placed a One Percent (1%) sales tax measure (Measure) on the November 8, 2016 ballot to ask the City’s voters to approve an ordinance that would enact a City-based one percent (1%) sales tax (officially called a “Transactions and Use Tax”). If approved, the tax would add one cent per dollar to the price of an item subject to the tax. Sales taxes are levied on retail sales and uses of tangible personal property. Sales taxes are collected by retailers and sent to the State Board of Equalization, which distributes the tax proceeds.

The current tax on retail sales in La Quinta is 8% of a purchase price. The City, however, receives only 1% of this 8%. The remainder goes to the State (6.25%) and Riverside County and Riverside County Transportation Commission (collectively, 0.75%). This Measure, if approved by the City’s voters, would authorize an additional City- based 1% sales tax, which would increase the total sales tax rate on retail sales in La Quinta from 8% to 9%.

All revenue generated by this Measure would be protected from being diverted away from the City and its services, programs and projects pursuant to Article XIII, Section 24(b) of the California Constitution, which provides, “The [State] Legislature may not reallocate, transfer, borrow, appropriate, restrict the use of, or otherwise use the proceeds of any tax imposed or levied by a local government solely for the local government’s purposes.” A January 2016 final report from a 14-member volunteer advisory committee estimated six million dollars annually could be raised if the Measure is approved, but actual amounts raised may vary.

All revenue generated by this Measure would go to the City’s general fund and would be available for expenditure for any and all services, programs and projects funded by the City, including: police protection; projects such as parks, streets, landscaping and flood control; programs attracting businesses; youth/senior services, sports/recreation programs; and preserving property values and quality of life. Because this Measure does not limit the use of tax revenue, under State law it is considered a “general tax,” not a “special tax” that restricts funds to a specific purpose. The permanent 1% sales tax proposed under this Measure would be subject to annual review by an independent citizen oversight committee.

A “Yes” vote is in favor of adopting the City-based 1% sales tax under this Measure. A “No” vote is against adopting the City-based 1% sales tax under this Measure. If a simple majority of voters vote “Yes,” then this Measure will be approved and the ordinance authorizing the City-based 1% sales tax will be adopted.[2]

—La Quinta City Attorney[1]

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:[1]

  • Mark L. Johnson
  • Linda Williams
  • George J. Botavick
  • Douglas D. Hassett
  • Marion Kay Wolff

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[1]

We support the 11/8/2016 ballot Measure G to raise the City of La Quinta (City) sales tax by 1%. The City is a premier community providing its residents with a rich and safe living experience. However, a number of factors have impacted the financial condition of our City. These include; the 2009 recession, dissolution of the La Quinta RDA, flattening sales and property tax revenues and rapidly increasing police expenditures.

The City, under the leadership of the Council and Manager, has taken many steps to address these financial issues. In 2015, the Council formed an Advisory Committee to get input from the community. The Advisory Committee was comprised of residents with diverse backgrounds, who for months independently analyzed the City’s finances. The Advisory Committee demonstrated that the City faced an uncertain future with projected expenditures exceeding projected revenues, leading to a $50 million deficit at the end of 10 years. Several revenue and expenditure recommendations were developed to improve the City’s financial condition including the recommendation to increase the sales tax by 1% from 8% to 9%.

Approximately one-third of the sales tax revenue is generated by City residents with two-thirds generated from those outside the community. The 1% sales tax increase will generate an additional $6 million in annual revenues. It is estimated that a City household with an annual income of $95,000 will only be impacted by an additional $91/year.

The additional sales tax revenue will help maintain a vibrant community and our quality of life. If the sales tax ballot measure does not pass, the only option is to reduce and/or eliminate critical infrastructure improvements and the services and programs we now enjoy.

We urge all residents to vote “Yes” in November on the sales tax increase ballot Measure G.[2]

Opposition

Opponents

The following individuals signed the official argument against the measure:[1]

  • Dolores Bernstein
  • Bruce McKelvy
  • Daniel Twohey
  • Ingrid Twohey

Arguments against

Official argument

The following official argument was submitted in opposition to the measure:[1]

The “tax and spend” culture in La Quinta needs to stop.After years of careless spending and irresponsible money management by our city and Council they are now asking taxpayers to cough up more money to bail them out of the mess they created, while they are holding onto substantial reserves. Over the last twenty years as a resident of La Quinta, I have seen:

  • All types of fees added to my property tax, utility and cable bills some of them city related.
  • Tax monies given away as business incentives or in the form of grants.
  • Sales tax and TOT rebates given to moneyed developers, and projects, to the detriment of our City finances.
  • Awarding no bid costly consulting contracts to well connected individuals, for projects the city could do.
  • Police, fire, and public employee salaries and benefits continuing to rise at alarming rates.
  • The city sank a large amount of RDA funds into the SilverRock Project a money losing project. We are stuck with a large bond repayment, covering the golf course loses plus other related costs, which this year took $543,000 from our “General Fund”.The City has developed no Plan B to reduce those costs.
  • The “Successor Agency” (RDA) has created a debt for the city of $350,000,000 which is repaid thru property taxes.
  • This tax increase proposition is not a “Special Tax” which would address real needs, but a tax that would be dumped into the “General Fund” to be spent by this Council as they see fit.

Approving this tax increase is like taking an Alka-Seltzer for your aching head when you need brain surgery.

We can VOTE NO to any new taxes and force change in our broken status quo system.[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 La Quinta, California.

Recent news

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

See also

External links

Footnotes

  1. 1.0 1.1 1.2 1.3 1.4 1.5 Voter's Edge, "Riverside County, November 8, 2016 Election," accessed November 19, 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.