The Measure T sales tax hike, approved by voters last November,
went into effect today.
The increase takes the city’s sales tax from 7.25 percent to
8.25 percent and is applicable on all purchases with the exception
of groceries, medical supplies, services, energy bills, public art
purchases and certain nonprofit business purchases.
The Measure T sales tax hike, approved by voters last November, went into effect today.
The increase takes the city’s sales tax from 7.25 percent to 8.25 percent and is applicable on all purchases with the exception of groceries, medical supplies, services, energy bills, public art purchases and certain nonprofit business purchases.
The increase effectively doubles the amount of tax funds Hollister can use. Since the state gets 6.25 percent of all sales taxes, pushing the tax to 8.25 percent means the city will keep 2 percent instead of 1 percent of the money.
Quilter said within two weeks he will present a proposal to the city council for approval that outlines how the extra money could be spent. He said the majority of the funds will go toward public safety, maintenance and parks and recreation.
The increase was expected to generate $3.5 million per year, although Quilter said because the economy has taken a downturn, the number could be smaller.
A “citizen oversight committee” is being formed by residents picked at random by the city. This committee will keep track of how the money from the tax increase is spent by compiling two reports per year that track the funds. Quilter said letters to prospective committee members are being mailed and the group should be meeting within six weeks.*
