Jake Goodrick
The Sacramento Bee
(TNS)
Voters in Yuba City will decide at the ballot box in November whether to add an additional 1% sales tax within city limits to address the city’s budget crunch, funding overdue road repairs and public safety expansion.
Although many in the community recognize the need to address damaged roads before their condition worsens, area voters shot down a similar tax two years ago.
The upcoming vote on Measure D follows an unsuccessful bid last election cycle by Sutter County officials, who pushed for a county-wide penny tax that failed by a narrow margin.
The proposed tax is expected to raise about $17.5 million annually, which would primarily go toward dealing with years of underfunded maintenance on city roads as well as investments in law enforcement, addressing homelessness and funding upgrades for the fire department.
City and county officials have reached an unorthodox deal to share the 1% revenue if the vote passes. Under their agreement, the city would claim two thirds of the expected income and the county would take the remaining third, with the purpose of funding projects and services that benefit both the city and county.
“Our understanding is this is extremely unusual for a city to propose to share revenue proceeds with the county,” said Diana Langley, city manager for Yuba City.
With a current sales tax of 7.25%, Yuba City is one of eight California cities at that state-minimum threshold, according to city officials. The extra penny would bring the city on par with neighboring Marysville and Yuba County, which each carry an 8.25% sales tax.
If the vote passes, Sutter County’s 7.25% rate would still apply to in-county transactions made outside the city.
Currently, Yuba City peels 1% from sales tax collections, with 4% going toward the state general fund and most of the remaining 2.25% to the county. Sales tax, along with property tax, is a major contributor to the city’s budget, which officials said has been hit, like consumers’ budgets, by inflation.
Yuba City Council members endorsed the new sales tax at their regular meeting this week, a show of support for the measure they previously voted to put on ballots. A similar 1-cent sales tax pitched by Sutter County officials failed narrowly during the November 2022 election, with more than 48% of voters in favor, shy of the majority needed.
How the tax works
Splitting the sales tax, based on current projections, would leave the city with about $11.7 million and the county with shy of $5.8 million each year. Any collections above the estimated $17.5 million would be split 50-50, with half going to the city and the other half into a joint project fund shared with the county, according to an agreement council members approved earlier this month.
“The funds are to go toward things that benefit Yuba City residents, which are also Sutter County residents,” Langley said.
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