Faced with a staggering deficit, the county is considering going
to the polls with a half-cent sales tax increase in November to
raise $2.5 million per year in an attempt to save county
services.
Faced with a staggering deficit, the county is considering going to the polls with a half-cent sales tax increase in November to raise $2.5 million per year in an attempt to save county services.
The San Benito County Board of Supervisors is exploring temporarily increasing sales tax to offset a budgetary shortfall of $4 million, which is a result from cutbacks in state funding, said County Administrative Officer Terrence May.
A half-cent increase, which would increase the current sales tax rate of 7.25 percent to 7.75 percent, would last between three to five years and could be placed on the November ballot if the Board decides to do so, May said.
“A half-penny sales tax increase… would go a long way toward maintaining the critical public services during this time of economic uncertainty,” May said.
A wide range of county services, including county parks, sheriff services and public works could see “deep cuts” if the budgetary gap isn’t closed, May said
The county’s budget problems are aggravated by the fact that it recently found out it has to backfill a loss of $1 million annually in property taxes to the state, May said.
The state found that the county inappropriately calculated the amount paid into a state-run education fund from 1997 to 2002, and as a result has to adjust the property tax allocation to comply with the findings, May said.
“The county will either have to find new revenue sources to support county services funded by property tax dollars or cut services,” May said.
May presented his report to the Board at its Tuesday meeting Board members asked May to meet with Hollister and San Juan Bautista city managers to see if they would support a tax increase, said Supervisor Reb Monaco.
“We need to increase revenue someplace – it’s either cut services or increase revenue,” Monaco said. “I think we need to look at the feasibility of (an increase).”
Though Hollister Mayor Tony Bruscia, wants to work with the county on budget issues, he doesn’t agree with the sales tax idea. He would rather the city and county fight for more money from the state.
“I feel like we already pay too
