2 SLO County cities will ask voters for sales tax increases on November ballot
Two San Luis Obispo County cities are considering raising their sales taxes — but they need to get approval from the voters first.
At their most recent meetings, the Arroyo Grande and Pismo Beach city councils both voted to place referendums on the November ballot asking voters to approve a sales tax increase.
At its May 28 meeting, the Arrroyo Grande City Council voted unanimously to place a 1% increase to the sales tax on the ballot in hopes of adding $6 million each year in revenue, according to the staff report.
If approved, Arroyo Grande’s sales tax would increase from 7.75% to 8.75% for the next 10 years, adding funds to the general fund for staffing, road repairs and other needed infrastructure repairs.
A referendum would require approval from more than 50% of Arroyo Grande voters, who rejected the Measure D-22 sales tax that proposed a similar increase in 2022.
Pismo Beach also seeking sales tax increase
At its Tuesday meeting, the Pismo Beach City Council voted 4-1 with Councilmember Scott Newton dissenting to add a similar referendum to the November ballot there, seeking a 0.5% sales tax increase that would extend a previous 0.5% sales tax measure.
Pismo Beach last asked its voters to raise sales taxes a decade ago in 2014, when more than 71% of voters voted for Measure I.
Measure I extended a half-cent sales tax measure originally approved in 2008, which set the sales tax at 7.75% through March 2027.
This sales tax increase would modify the sales tax rate to one cent, which would double the measure’s $2 million annual contribution to Pismo Beach’s annual budget, according to the staff report.
In Pismo Beach, 63% of the sales tax is collected from visitors and tourist into our community, leaving the remaining 37% to residents.
If approved, this ballot measure would raise the sales tax rate to 8.25%, according to the staff report.
Currently, both Pismo Beach and Arroyo Grande enjoy the lowest sales tax rates of any city in San Luis Obispo County at 7.75%, with all other cities using a 8.75% sales tax rate.
This story was originally published June 7, 2024 at 5:00 AM.
