Tax & Accounting Blog

Tracy, CA Will Decide on Half Cent Sales Tax Increase in November

Indirect Tax, Tax Management Software September 11, 2010

Last month, the Tracy City Council approved a ballot measure which will ask voters to decide on a half-cent local sales tax increase. The city faces a $5 million budget deficit and the sales tax increase would go toward balancing this. According to the Tracy City Manager, approximately 94 percent of the city’s budget comes from sales taxes and property taxes. As property taxes have declined, the city has struggled financially.

Opponents of the increase feel it will be an unfair burden on small businesses. Proponents indicated it is needed to balance the budget.
An independent survey taken earlier in 2010 indicated that voters will likely approve the sales tax increase, if it comes with a 5 year sunset clause. We shall see in November.