The City of Hollister is currently taking steps in an effort to
place a tax initiative on the November ballot that would increase
the current local sales tax by 1 cent.
The City of Hollister is currently taking steps in an effort to place a tax initiative on the November ballot that would increase the current local sales tax by 1 cent.
The city has gone as far as hiring a firm to conduct a public relations campaign aimed at informing local residents and gauging their receptiveness to the idea.
We believe the city council is right to put energy into getting the issue placed before voters. An increase in the sales tax is a viable issue and the voters should have the right to make the decision.
Currently, Hollister’s sales tax rate is 7.25 percent. Cities and towns in the surrounding area are substantially higher. Gilroy, Morgan Hill, and San Jose are all at 8.25. Salinas is at 7.75 and San Juan Bautista is at 8. Voters should decide if Hollister needs to become commensurate with these rates. A proposed increase would require a simple majority of more than 50 percent of votes to pass.
City officials have made somewhat dire predictions concerning the state of the city if revenues are not increased. City Manager Clint Quilter has said that without a tax increase, the city may have to cut services by as much as 20 percent in coming years. These services could include public safety, parks and recreation, and street maintenance. Quilter estimates that an increase in sales tax by 1 cent would generate about $4 million in revenue for the city each year. This, the city says, could restore some services impacted by cuts of some 20 percent to the city’s workforce the past few years. The increase in revenue would go into the general fund.
So far, the city says residents have responded positively to survey questions. How this translates at the ballot box would have to be seen. Voters have appeared amenable to school bond issues in recent elections and mostly voted them down.
And obviously, there would be opposition and debate. In Hollister, the debate is likely to be heard from familiar voices, pro and con. That’s fine. It would be nice to hear from residents in areas who remain quiet on local issues. Perhaps an issue that pertains directly to the pocketbook will draw those voices.
Regardless, voters should have the opportunity. To argue that Hollister’s finances are depressed is absurd. Drive around town and take a look. And not just the downtown, always a favorite target. Since the sewer moratorium was imposed, the notion of economic development in Hollister is amusing. It has been slow, to be gracious about it.
Proposed tax increases of any kind create a flare-up of interest and debate. After an election that saw a voter turnout that can truly be described as pathetic, we welcome interest, on virtually anything. But an increase of 1 cent in the local sales tax is a worthy issue. The city is right to offer it to a vote. Let’s get it on the ballot and let the voters decide.
