Though we strongly believe the people of California, and more
specifically of San Benito County, pay far too many taxes, the city
of Hollister’s lack of revenue actually seems to prove a sales tax
increase is needed and warranted at this time.
Though we strongly believe the people of California, and more specifically of San Benito County, pay far too many taxes, the city of Hollister’s lack of revenue actually seems to prove a sales tax increase is needed and warranted at this time. Needed and warranted – two words rarely justified in a sentence containing the word tax – only apply if the city presents a solid plan with a reasonable expiration date for the tax increase.
It’s clear Hollister has fallen on hard financial times with increased costs for city employees and their healthcare and pension plans, the rise of the Garlic City as a retail destination, and the unwelcome transformation of the county into a Silicon Valley bedroom community in the post-bubble era. There’s crime in our streets, poverty in many homes and our city has endured staffing and service cuts for years. Facing another $3 million deficit this year, the city is running out of options to solve the structural problems creating the annual deficit and there is simply no more room for cuts without affecting public safety personnel such as police officers. It’s either a small tax increase now, or a huge one later when there is no where left to turn.
Though the city cannot guarantee how revenue from the tax increase will be spent without making it harder to pass the tax at the ballot booths, city council candidates could campaign on the issue for the November election. And, the people of Hollister must hold their elected officials accountable if this tax increase, assuming it passes, is squandered.
Formally planning how the tax would be spent would make the measure a special tax – requiring a two-thirds vote of approval to pass. However, the 1 percent increase would generate roughly $1 million more than what is needed to cover the deficit, we hope the city will use that extra revenue to replenish its depleted reserve account.
Likewise, it’s hard to ignore the role of Hollister’s sewer moratorium in the city’s financial plight. If the city was growing according to growth caps, would Hollister have the money troubles and need to raise taxes? Probably not, or at least the city wouldn’t need a whole cent on every dollar spent. That’s why the tax increase should have a relatively short life if the city wants voter support when the measure is put on a ballot.
The proposed tax increase would bring the city in line with Gilroy’s tax rate, where a large number of residents shop anyway, so it’s not a tremendous burden for most taxpayers. But there is one truth when it comes to taxes – if government has the money, they’ll find a way to spend it. In fact, that’s how we ended up in this predicament in the first place.
