Fifty-three percent San Juan Bautista residents voted to pass a
three-fourth cent sales tax that city officials said will generate
about $110,000 more for the city annually.
San Juan Bautista – Fifty-three percent San Juan Bautista residents voted to pass a three-fourth cent sales tax that city officials said will generate about $110,000 more for the city annually.
The increase will bump the city’s 7.25 percent tax to an even 8 percent.
The City Council voted to put the tax on the ballot in June because members believe it will help solidify the town’s budget, said Councilman Arturo Medina. Some business owners voiced opposition to the tax because they felt it could scare off tourists.
“Tourists aren’t even going to see it,” Medina said. “I’ve had tourists tell us they can’t believe we’re charging that low of a rate.”
The council approved a budget that was $90,000 in the red in August. But City Manager Larry Cain said the debt will be erased by the city raising water and sewer rates and the sales tax.
The state gives the city a half-cent back for every dollar it takes for property taxes, and Cain said that half-cent revenue source is too small to keep the general fund healthy.
“It’s real, real important we have a revenue source we can depend on, and this is part of it,” he said.
The tax will take effect in January, he said.
San Juan resident Kathy Edwards said that while she doesn’t believe the tax will drive tourists away, she voted against it because she doesn’t want to pay more taxes.
“No matter how much money the city gets, it doesn’t go for the streets and other things (that need to be fixed),” she said. “I don’t see improvements.”
City Councilman George Dias said he’s looking forward to working with his fellow council members, but he voted against the tax because he also thinks the city isn’t accountable with its money.
“Why charge more money when the money we have, we don’t know where it’s going?” Dias said.
Erin Musgrave covers public safety and the city of San Juan Bautista for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected]
