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IS BALLOT MEASURE Q ANSWER FOR MANTECA?
Three quarter of a cent sales tax hike proposal assigned letter ‘Q’ for upcoming Nov. 5 ballot
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The City of Manteca’s proposal for a three quarter of a cent sales tax hike will appear on the Nov. 5 ballot as Measure Q.

Only one argument regarding the measure was submitted for inclusion in the voters’ pamphlet by the deadline earlier this week. The argument is in favor of the tax hike.

The tax hike, if approved, would take the Manteca sales tax rate from 8.25 percent to 9 percent.

That means for every $100 in taxable sales, consumers would be paying 75 additional cents in sales tax.

The sales tax also has a lifespan of 20 years. That means if it is approved it would sunset in 2045 unless voters approve an extension.

Manteca currently receives a 1 percent sales tax to support general fund municipal services such as police and fire protection as well as street upkeep among  other things.

California has a state-mandated minimum 7.25 percent sales tax.

The maximum cities, counties, and districts can increase sales tax to is 10.25 percent.

There are three cities in the greater region at the 10.25 percent mark — Livermore, Pleasanton, and Dublin.

That means any state-imposed sales taxes in the future could not be imposed in those three cities as long as existing sales taxes are in place.

Within San Joaquin County if Manteca voters increase the tax rate to 9 percent, it would match Stockton as being the highest.

Lathrop is at 8.75 percent, Tracy is at 8.25 percent, and Ripon at 7.75 percent.

Modesto’s sales tax is 8.875 percent while Turlock is at 8.63 percent.

City leaders have stressed a local sales tax cannot be taken away from another entity.

Since Proposition 13 passed, the state has taken away — or diluted — several revenue sources local jurisdictions once had.

Another point they stressed when the City Council unanimously agreed to place the sales tax request on the ballot, was the fact sales tax is paid by non-city residents as well as Manteca residents.

That includes people who reside in nearby cities who shop at Manteca stores like Costco and Bass Pro as well as commuters that purchase fuel, or travelers that stop to eat at Manteca restaurants.

Based on current municipal tax receipts, a three quarter of a cent increase would generate $13 million annually in today’s dollars over the course of two decades.

Leaders have indicated it will go toward making sure the city has manpower to maintain services levels but also increase them.

Several capital improvement endeavors such as increase street maintenance, a sixth fire station needed in southwest Manteca, a modern police headquarters, and community recreation entities could be financed.

The major projects, of which the least expensive is a fire station with roughly an $8 million price tag, could be built with bonds.

There is currently no bonded debt against the general fund.

At the same time, the city has funds in various accounts collected from growth to pay for government facilities, fire facilities, and community park improvements.

The community park fund has $9 million currently.

The intent is to wed future revenues from sales tax Measure Q would generate along with fees assessed on growth in the coming years to retire bonds if they are issued.

 

To contact Dennis Wyatt, email dwyatt@mantecabulletin.con