55C - RESO SALES TAX MEASURE - Laserfiche WebLink

Home Browse Search

Proposed Add on Sales and Use Tax Measure for Municipal Services for Public Consideration on the November 2018 Ballot July 17, 2018 Page 4 Orange County Cities with an Add On Sales and Use Tax In 2016, voters in five other Orange County cities approved or reaffirmed six add on sales and use tax measures. The following cities currently have an add on sales and use tax in Orange County: City Increment Sales=&&Use' Tax-Rdte _- Fountain Valley 1.0% 8.75% Westminster 1.0% 8.75% Stanton 1.0% 8.75% La Palma 1.0% 8.75% La Habra 0.5% 8.25% Additionally, there are several other cities in Orange County that are currently evaluating sales and use tax ballot measures for this upcoming November 2018 election cycle. Consumer Response to Add On Sales and Use Tax Consumers spending patterns are generally not impacted by local sales tax rates. Staff conducted a survey of the Orange County cities that have a local add on sales and use tax and validated that passage of add on sales tax measures has not led to a decline in sales tax revenue. Additionally, when the tax revenue addresses city needs such as homelessness, public safety, quality of life and infrastructure, consumers do not compare -shop for sales tax rates. If the Santa Ana Neighborhood Safety and Essential City Services Protection Measure is approved, staff anticipates launching an enhanced Shop Local campaign with an emphasis on the benefits of local purchases on the economy and the services consumers will receive as a result of keeping their spending within the City of Santa Ana. Revenue Estimates The City Council, at the June 19, 2018, Council meeting, requested estimates on the anticipated revenue that may be generated at various add on sales and use tax increments. The chart below outlines general estimates, which represent a full year of revenue, for consideration: Increment Annual Est.—", 1 % cent $60 million 1 cent $40 million % cent $30 million '/2 cent $20 million 55C-4