San Jose, California, General Sales Tax, Measure B (June 2016)
| Measure B: San Jose Sales Tax Measure |
|---|
|
| The basics |
| Election date: |
| June 7, 2016 |
| Status: |
 Approved
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| Topic: |
| Local sales tax Expires in: 15 years |
| Related articles |
| Local sales tax on the ballot June 7, 2016 ballot measures in California Santa Clara County, California ballot measures City tax on the ballot Sales tax in California |
| See also |
| San Jose, California Municipal elections in San Jose, California (2016) |
A general sales tax measure was on the ballot for San Jose voters in Santa Clara County, California, on June 7, 2016.[1] It was approved.
| A "yes" vote would enact a 0.25 general percent sales tax for 15 years. |
| A "no" vote would reject the proposed 0.25 percent sales tax. |
City officials estimated this sales tax would bring in about $38 million per year, which would go to the city's general fund and could be used for any government purpose. Approval of this additional sales tax would increase the total sales tax in the city to 9 percent. If this measure is rejected, the total sales tax rate in the city would continue at 8.75 percent—a 7.5 percent state-mandated tax, a 1.125 percent tax levied by the Santa Clara Valley Transportation Authority and a 0.125 percent county tax.[1]
Election results
| San Jose, Measure B | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 121,030 | 61.41% | ||
| No | 76,054 | 38.59% | ||
- Election results from Santa Clara County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[2]
| “ |
To fund essential City services such as: improving police response to reduce violent crimes and burglaries; improving 911/emergency medical/fire response times; repairing potholes and streets; expanding gang prevention; and maintaining the City’s long-term financial stability, shall the City of San Jose enact a ¼ percent sales tax for 15 years, providing about $40 million annually, requiring Independent Citizens Oversight with public review of spending, and all revenues controlled locally?[3] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the San Jose City Attorney:
| “ |
Measure B is a ballot measure that, if approved by a majority of the voters, would amend the San José Municipal Code to enact a one quarter percent (0.25%) transactions and use tax. The Measure is a "general" tax, which means the City of San José may use the tax revenues for any governmental purpose, including improving police response to reduce violent crimes and burglaries; improving 911/emergency medical/fire response times; repairing potholes and streets; expanding gang prevention; and maintaining the City's long-term financial stability. The tax would terminate automatically on September 30, 2031, unless extended by voters. If approved, Measure B would also require annual financial audits and yearly reports of the tax revenues. Additionally, the City Council would be required to appoint an independent citizen oversight committee that would review expenditures of the tax revenues. While Measure B, which was placed on the ballot by the City Council, is a "transactions and use tax", it is commonly referred to as a sales tax. A transactions and use tax is levied on the same purchases as the existing sales tax with some minor exceptions. Currently, the cumulative tax rate on retail sales in San José is 8.75% of the purchase price. The tax revenue is allocated among the State, Santa Clara County, the City, and other public agencies. San José's share is 1% of the purchase price, Measure B would increase the cumulative tax rate in San José to 9.00% and San José's share would increase from 1% to 1.25%. Retailers and other businesses that collect the sales tax and the transactions and use tax at the time of sale remit the funds to the State Board of Equalization which administers these taxes, including transmitting payment to the City. A ”Yes” vote is a vote to approve a one-quarter percent transactions and use tax for 15 years. A “No” vote is a vote against the transactions ànd use tax [3] |
” |
| —San Jose City Attorney[4] | ||
Full text
The full text of the measure is available here.
Support
Supporters
Mayor Sam Liccardo, Vice Mayor Rose Herrera and Council Members Ash Kalra and Donald Rocha endorsed the proposed sales tax.[1]
The following individuals signed the official argument in favor of the measure:[4]
- Sam Liccardo, San Jose Mayor
- Rob Davis, retired San Jose Chief of Police
- Mathew Mahood, president and CEO of San Jose Silicon Valley Chamber of Commerce
- Richard Konda, Asian American Non-Profit Leader
- Ivy Vuong, business owner
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[4]
| “ |
Mayor Liccardo, San Jose police officers, firefighters, and business leaders agree: Measure B will make our city safer and stronger. Measure B is needed to improve police response times. We have lost hundreds of police officers, making it difficult to respond quickly to 911 calls. Measure B will make funding available to hire more officers. Measure B is needed to reduce response times for medical emergencies, when every second counts. Measure B raises funds that can be used to ensure that those suffering from heart attacks, strokes, or other emergencies get an immediate response. Measure B is needed to help fight gangs and drug crimes. It will raise funds that can be used to expand gang suppression and prevention programs, crack down on drug dealers, and provide options for at-risk youth. Measure B is needed to repair roads and infrastructure. San José has over 550 miles of major streets and neighborhood roads rated as being in "poor" or "failed" condition, with many containing huge potholes. Every dollar of Measure B revenue used to fix poor roads today will save $5 reconstructing those same roads later. Measure B allows us to avoid debt and provides needed funding to invest in important basic services like:
Measure B has strong.accountability provisions. It requires independent citizens oversight and annual financial audits to help ensure funds are spent appropriately. Now that we've tightened our belts through fiscal reforms and cut costs, we need this temporary measure to restore basic city services. For a safer san José, vote Yes on Measure B.[3] |
” |
Editorials
- The San Jose Mercury News editorial board endorsed a "yes" vote on Measure B, arguing the city has proven willingness to work towards fiscal responsibility. An excerpt of the editorial is below:
| “ |
San Jose has come a long way toward putting its financial house in order. Over the past decade it has dramatically cut costs, including salaries and numbers of employees. It has achieved a pension reform settlement with unions to save taxpayers billions over several decades. And in Sam Liccardo, it has elected a mayor committed to building reserves and spending prudently on cost-effective initiatives and services. For these reasons -- and because the city simply needs more money to provide the level of service residents expect -- voters should approve Measure B in June.[3] |
” |
| —The Mercury News editorial board[5] | ||
Opposition
Opponents
The following individuals signed the official argument against the measure:[4]
- San Jose Councilman Pierluigi Oliverio
- Mark W.A. Hinkle, president of the Silicon Valley Taxpayers Association
- Elizabeth C. Brierly, San Jose resident
- Steven B. Haug, treasurer of the Silicon Valley Taxpayers Association
Arguments against
Opponents of sales tax increases argued that sales taxes are regressive, hurting the poor more than the rich. Opponents also argued that the city government should cut unnecessary spending instead of raising taxes. Other critics claimed that higher sales taxes would push more consumers towards internet shopping, which would hurt the local economy.[4]
Official argument
The following official argument was submitted in opposition to the measure:[4]
| “ |
Budgets reflect priorities, especially with expenditures. What's in the budget is a priority. What is NOT in the budget is NOT a priority. That means that the projects the San Jose City Council wants to fund (police, fire, road improvements) with new taxes are NOT a priority because they're not in the current budget. If it's NOT a priority for the City Council, why should the voters of San Jose support any new taxes? Answer: they shouldn't. The streets of San Jose are terrible. If the San Jose City Council thinks they are a priority, then why is road maintenance under-funded? Because they don't consider roads a priority. Do you agree? The City Council says we need to hire more police to be fully staffed. Again, if money for new police isn't in the current budget, that means that everything currently in the budget is higher priority than a fully staffed police department is. Do you agree? What does the City Council think is more important than police, fire, and roads? Answer: Three golf courses, a luxury hotel, the Mexican Heritage Plaza, and millions to subsidize art groups that go bankrupt. Do you agree? Remember, sales taxes are regressive: they most hurt the poor, the unemployed, the homeless, and those on fixed incomes. Furthermore, high sales taxes drive consumers to shop the internet to avoid sales taxes, hurting local businesses, and local jobs. One final thought: the levels of taxes we pay are either: 1. too high 2. about right 3. too low If you think taxes are too low, by all means, raise them. But, if you think taxes are about right or too high, you should oppose this sales tax increase, and Vote NO on Measure B.[3] |
” |
Background
In 2014, the city council considered putting a sales tax measure before voters. Ultimately, the idea was abandoned.[1]
Polls
A poll commissioned by the San Jose City Council showed support for a nine-year, 0.25 percent sales tax increase. Those surveyed were provided the following question:
| “ |
San Jose Local City Services Measure. To fund local city services such as improving police response to violent crimes, burglaries, and other safety needs; improving 911, emergency medical and fire response times; repairing potholes and streets; maintaining city parks; expanding gang prevention; and created jobs through economic development, shall the City of San Jose enact a one-quarter percent sales tax for 9 years, providing about $38 million annually, requiring Independent Citizens Oversight with public review of spending, and all revenues controlled locally?[3] |
” |
| San Jose General Sales Tax poll from Fairbank, Maslin, Maullin, Metz & Associates | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Poll | Definitely yes | Probably yes | Lean yes | Undecided | Lean no | Probably no | Definitely no | Margin of error | Sample size | ||||||||||
| City council-commissioned poll July 2014 | 33% | 21% | 8% | 5% | 4% | 8% | 21% | +/-Unknown | 1,515 | ||||||||||
| Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org. | |||||||||||||||||||
Poll questions about a special sales tax for public safety and a special sales tax for road repair were also asked. There was 71 percent support for a tax earmarked for public safety and 65 percent support for a tax earmarked for roads. Per state law, special taxes require a two-thirds (66.67%) vote for approval, while a general tax requires a simple majority.
Path to the ballot
Mayor Sam Liccardo, Vice Mayor Rose Herrera and Council Members Ash Kalra and Donald Rocha said they supported putting this sales tax measure on the ballot. South Bay Labor Council director Ben Field said he thought it was likely the measure would appear before voters at the election on June 7, 2016. City council members would have to approve the measure for the ballot by a deadline on March 11, 2016.[1]
Other elections
Five seats on the San Jose City Council were up for general election on November 8, 2016.
Recent news
The link below is to the most recent stories in a Google news search for the terms San Jose quarter cent sales tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 Silicon Valley Business Journal, "Quarter-cent sales tax measure likely to appear on San Jose ballot in 2016," January 7, 2016
- ↑ Santa Clara County Elections Office, "List of Local Measures: Presidential Primary Election, June 7, 2016," accessed April 16, 2016
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 Santa Clara County Elections Office, "June 7th Primary Measures - Analyses and Arguments," accessed April 21, 2016
- ↑ The Mercury News, "Mercury News editorial: San Jose tax deserves voter approval," April 8, 2016
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