Measure I – Argument against implementing a General Sales Tax increase for the City of Placerville

We of Placerville strongly disagree with the City Council’s move to raise Sales Tax by 0.5% for a period of 10 Years.  We agree that roads must be maintained.

A General Sales Tax increase does not guarantee that the money will be used for road improvements.  The council promises 75% of the funds will be for road improvements and 25% for other projects without a legally binding guarantee that the funds will be used as promised.  The Council is pushing for a General Sales Tax in order to pass this measure with a simple majority of 50%+1 rather than a 66.7% majority which would be required if this tax measure was put on the ballot as a Specific Tax.

Tourists are not the only ones who will be affected.  A ½% sales tax increase will impact all City residents and merchants.  A tax increase could very well drive tourists and locals to shop outside of Placerville since this increase will put Placerville at a higher tax rate than surrounding jurisdictions.   Increasing the tax could actually impact Placerville’s overall sales and lower the gross sales tax collected.

This General Sales Tax increase will hurt the local economy adding an extra financial burden on local citizens.  It all adds up.  With increasing food and gas prices, the City Council is asking an already struggling local economy to pay more over the next 10 years for the City Council’s past mistakes.  This proposed solution demonstrates the Council’s inability to fix the current General Budget.  Vote no on the General Sales Tax increase.

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