Bill Would Allow Cities to Increase Sales Tax Beyond California Cap

Lori Wilson took to X to showcase her bill.

AB 3059 was introduced in mid-February and could be heard in committee on March 18, 2024.

Monday Update

According to  Edgar Guerra, Communications Director, AB 3259 emerged as a response to valuable feedback received from cities within District 11. It’s essential to emphasize that the ultimate decision-making power lies with the voters. He provided quotes from local mayors.

• Benicia Mayor Steve Young – “I am grateful to Assemblywoman Wilson for her submission of this bill. When approved by the Legislature and signed by the Governor, it will allow the citizens of Benicia to vote on whether to invest in their streets and roads. It also allows voters in other cities in the County the same opportunity to address the common fiscal challenges faced by all local governments. Letting the voters decide is the essence of our democracy.”
• Fairfield Mayor Catherine Moy – “Decisions on local government revenues should be made by local taxpayers. I support Benicia’s interest in raising the maximum sales tax rate in Solano County as their voters determine if a sales tax measure is in their best interest. We thank Assemblymember Wilson for her steadfast support of local issues by introducing this legislation.”
• Vallejo Mayor Robert McConnell – “The City of Benicia is looking at a huge deficit in it’s general fund budget without the passage of this bill.  The taking of those drastic but necessary cuts could and would produce substantial hardship on the residents of Benicia.  Having the bill become law as rapidly as possible will help the residents of the City of Benicia who need the assistance of their government.  Without the bill, very hard decisions and impacts will be felt by those residents.”
• Suisun City Mayor Alma Hernández – “It is important to note that increasing the current tax limit in Solano County by 0.5% does not mean that sales taxes would automatically go up but rather that it will allow residents the ability to decide through local ballot measures what tax policies are right to address their local community needs, which would not be possible if they are impacted by the existing sales-tax limitation. By safeguarding the ability for residents to vote on their local tax policies, we preserve their right to decide their local economic future.”

FYI

Last week, the Antioch Sales Tax Oversight Committee on City of Antioch Measure W. In 2023, the sales tax revenue was $20.3 million added to the general fund – which was approximately $207,317 less than 2022.

Meanwhile, the Lafayette City Council began the process of possibly placing a 1/2 percent increase in sales tax on the November ballot. This comes as the city is dealing with a 10% ongoing structural deficit every year going forward—approximately $2 million.

Current Sales Tax Levels in Contra Costa County effective January 1, 2024:

Solano County

For more information on sales tax, click here