Should SLO pursue a new sales tax? A lot of voters say yes, and here’s why
A professional survey conducted in San Luis Obispo showed that a majority of voters would support a sales tax — and that top issues of community concern include addressing homelessness and creek cleanliness.
The City Council hasn’t decided yet whether it will put a sales tax on the 2020 ballot, and for how much, but it’s considering one. The city’s current sales tax rate is 7.75 cents.
“Almost six in 10 perceived there is a need for additional funds for city services and infrastructure, though only about two in 10 perceive there is a great need,” said Richard Bernard of FM3 Research, the Los Angeles firm that conducted the poll. “There is a strong emphasis on maintaining the services and city infrastructure (residents) currently have.”
Generally speaking, 59% of those polled supported a need for additional funds, with 21% expressing a great need and 38% expressing some need.
SLO voters show general support for sales tax
Other poll results showed:
▪ Almost 63% support a specific 1.5-cent sales tax increase (34% definitely yes, 25% probably yes and 3% leaning yes).
▪ More than 60% support a 1-cent sales tax (35% definitely yes, 22% probably yes and 4% leaning yes).
▪ 68% polled said city services are important or very important.
▪ 42% said improving essential services is important or very important.
The survey of 442 registered SLO voters was conducted online, by cell phone and by landline from Sept. 15-22 and limited to roughly 20-minute conversations.
In early 2018, the City Council received a list of 73 projects in need of funding estimated to cost a combined $418 million. They included a new Police Station and 8improvements to Mission Plaza.
The City Council postponed a decision to place a potential 1-cent sales tax on the November 2018 ballot, opting to reconsider its option in 2020.
SLO voters would support tax rate to help city
Support for a 1-cent general purpose, simple majority sales tax was slightly lower than support for a 1.5-cent sales tax, SLO officials wrote in a staff report.
“This may be attributed to the 1-cent sales tax focusing on infrastructure only while the 1.5-cent sales tax includes services, maintenance and infrastructure,” SLO officials wrote.
The city has a current, half-cent sales tax under Measure G to protect and maintain essential services and facilities through 2023, if not renewed by voters.
That includes public safety, streets and sidewalks, open space, bike lanes, capital improvement projects, and senior programs, among other needs.
Councilmember Andy Pease told The Tribune that a potential option under consideration is to float a 1-cent sales tax increase that would be added to the current half-cent Measure G tax. That would total a 1.5-cent tax under the umbrella of Measure G.
A 1.5-cent tax would generate about $23 million per year from those taxes, up from the current $7 to $8 million generated annually under Measure G, Pease said.
“It probably won’t be until May when we decide,” Pease said. “We’ll do some community outreach and gather info, soliciting feedback from voters. We’re still open to discussion and gathering info.”
Bernard — who presented the results at last week’s SLO City Council meeting — said more than 50 percent of voters would need to support the general sales tax for it to be adopted.
Thus, the poll was looking to see if at least 55% to 56% of voters would say “yes” to the measure; that’s because the survey has a 4.9% margin of error, Bernard said.
Homeless and creeks are among top issues
Bernard said a general purpose tax can’t be designated for specific uses. But among the key issues voters rated as extremely or very important, the top 5 were:
▪ Requiring all funds to be used locally (79%).
▪ Protecting creeks from pollution (73%).
▪ Addressing homelessness (71%).
▪ Maintaining police, fire and emergency response (71%).
▪ Keeping public areas clean and safe (67%).
This story was originally published December 11, 2019 at 5:00 AM.
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