Vol. XV, No. 9
March 8, 2002

LOCAL ELECTION TAX MEASURES HAVE MIXED RESULTS

Voters around California on March 5 were faced with more than 45 ballot measures that raise or lower taxes or have tax ramifications. A utility user tax felt the wrath of voters in Santa Cruz County. Eight of 14 parcel tax measures and all three sales tax pitches were rejected in overall mixed results.

(These measures are in addition to the 76 local school bonds and five school parcel taxes that are covered elsewhere in this Caltaxletter.)

Local bond measures, with proceeds directed at public safety or hospitals or libraries, fared well. At least four of the five finished in the winner’s circle, and the fifth – Los Angeles’ $600 million proposal to build police stations – was too close to call. These bond measures, which are financed from property taxes, amount to $830 million.

A pair of local business tax measures were approved. Of eight hotel-motel occupancy tax measures, five succeeded.

As could be expected, libraries and firefighters were popular draws for bond money. San Jose’s $159 million measure for fire stations garnered 71.6 percent of the vote. A bond measure in National City and four successful parcel tax measures benefit library construction.

A parcel tax measure for firefighting services was approved by 71.8 percent of the vote in Novato (Marin County), but a measure to help fund fire-protection services in Mokelumne Hill (San Joaquin County) failed to get two-thirds support. In Siskiyou County, a parcel tax proposal in Yreka to fund fire-fighting and rescue equipment also fell short of the two-thirds mark.

Measures to raise sales taxes for a zoo in Fresno and jails in Kings County fell short of the two-thirds threshold for special taxes with earmarked revenues.

One major ballot fight deals with how taxes are to be raised as San Diegans approved a measure to require a two-thirds vote to boost any tax. But it would be nullified by a countermeasure that appeared to be passing as election officials tallied absentee ballots.

Here’s a rundown, by county, of tax-related measures found in a Cal-Tax survey of March 5 local ballots:

AMADOR COUNTY:

Hotel Tax. A 10 percent transient occupancy tax in Sutter Creek was approved by 55.6 percent of voters.

ALAMEDA COUNTY:

Bonds. Oakland’s $59 million bond issue for its museums and zoo was approved by 75 percent of the vote.

Parcel Tax. The East Bay Regional Park District proposed a parcel property tax of $12 per single-family parcel and $8.28 per year per multi-family unit. The district serves Contra Costa County and the measure is also on the ballot there. Needing two-thirds, the defeated measure got just 65.1 percent in Alameda County and 57 percent in Contra Costa County.

CONTRA COSTA COUNTY:

Business License Tax. Voters in Danville ratified a business license tax ($100 plus $10 per employee) that was adopted in 1993 without voter approval. The vote was 67.1 percent.

Parcel Tax. Hercules proposed a $40 parcel property tax for libraries, and it was defeated, getting 54.3 percent of the vote (needing two-thirds).

Parcel Tax. Walnut Creek’s $22 parcel property tax for libraries was approved by 69.4 percent of the vote.

EL DORADO COUNTY:

Parcel Tax. A benefit zone encompassing El Dorado Hills proposed a $25 parcel property tax for libraries, and 73.3 percent of voters agreed.

FRESNO COUNTY:

Sales Tax. A 0.1 percent sales tax for zoo support was proposed by Fresno County. It failed, getting 56.2 percent of the vote (two-thirds needed).

Bonds. The Sierra Kings Hospital District’s $6 million bond issue won 79 percent support at the polls.

KINGS COUNTY:

Sales Tax. Kings County sought a 0.5 percent sales tax for jail construction. It received 64.9 percent support, but a special tax needs two-thirds.

KERN COUNTY:

Hotel Tax. Measure D would have kept the county hotel occupancy tax at 10 percent, but it gained the votes of only 35.6 percent of those who voted.

LOS ANGELES COUNTY:

Bonds. The city of Los Angeles’ $600 million bond issue for public safety facilities was barely losing (66.61 percent in support with 66.67 percent needed). Measure Q was supported by Mayor James Hahn and other city officials who contend the funds are needed to provide facilities for police and firefighters. Opposing the measure: the United Chambers of Commerce, the Howard Jarvis Taxpayers Association, the United Organization of Taxpayers, and various homeowners associations. Richard Close of the Sherman Oaks Homeowners Association argued that there are not enough police to staff existing buildings, so why increase taxes to build more?

MARIN COUNTY:

Parcel Tax. The Novato Fire District asked voters to increase its special tax by 2 cents per residence, and more than enough agreed (71.8 percent).

MENDOCINO COUNTY:

Special Tax. The Brooktrails Community Service District’s proposal to increase its special tax failed with 56.8 percent of the vote.

MERCED COUNTY:

Hotel Tax. The city of Merced’s measure to increase the transient occupancy tax from 10 percent to 12 percent to maintain a community swimming pool was rejected by about 66 percent of those who voted.

PLACER COUNTY:

Hotel Tax. North Lake Tahoe proposed to increase its hotel tax from 8 percent to 10 percent. This was OK with 63.4 percent of voters.

RIVERSIDE COUNTY:

Parcel Tax. La Quinta asked voters for a parcel property tax for fire and paramedic services. The rates are $85 for residential, $610 per acre for commercial and industrial and $10 per acre for undeveloped land. The vote was 66.14 percent, which is just shy of the 66.67 percent needed.

Parcel Tax. The city of Riverside proposal for a $19 parcel property tax for libraries succeeded with 68.9 percent of the vote.

SAN BERNARDINO COUNTY:

Park Tax. Voters rejected Adelanto’s park and recreation access tax Measure N, giving it only 46.1 percent support.

Special Tax. Rim of the World district voters turned down a special tax, with 55 percent opposed.

SAN DIEGO COUNTY:

Voter Approval Requirements. Proposition E, requiring a two-thirds vote of the people to approve any city of San Diego general tax, was approved by 54.3 percent of the vote. However, it probably will end up losing because Measure F, a countermeasure pushed by Mayor Dick Murphy and the City Council, seemed to be winning, and it would require any measure that imposes such a super-majority vote requirement on taxes must also meet the same standard of voter approval. Measure F, ahead by only 333 votes on Election night, was passing by 933 votes two days later, with about 4,800 absentee ballots from within the city yet to be counted. According to the San Diego Union-Tribune, Proposition E was backed by hotel owners and developers who feared that the City Council would try to raise the tax on hotel room bills, currently 10.5 percent. The San Diego County Taxpayers Association opposed Proposition E.

Bonds. National City’s $6 million bond for a new city library won with 73.2 percent of the vote.

SAN FRANCISCO CITY AND COUNTY:

Bonds. Proposition F, creating an oversight committee to monitor how San Francisco spends bonds proceeds, was passed by 69.5 percent of the vote. There has been concern that bond money dedicated to capital outlay has been siphoned off for public employee salaries.

SAN JOAQUIN COUNTY:

Parcel Tax. The Mokelumne Rural Fire District proposed a parcel property tax at various rates depending on type of property. The maximum rate for a residential dwelling is .03 per square foot. It was supported by 64.3 percent, but needed two-thirds.

Hotel Tax. Tracy asked voters to allow it to continue to impose a 10 percent hotel tax that was not voter-approved when originally levied. It’s now OK, since 68.1 percent of voters go along.

Hotel Tax. Manteca asked voters to allow the city to continue to levy its 4 percent hotel tax that was not voter-approved when originally levied. It was approved by 60.3 percent.

SANTA CLARA COUNTY:

Bond. Approved by 71.6 percent was San Jose’s $159 million bond for adding and improving fire stations, training facilities and creating a “state of the art” 911 communications facility.

SISKIYOU COUNTY:

Parcel Tax. A parcel tax in the city of Yreka for a five-year period failed with 58 percent of the vote (needed two-thirds). It was to raise up to $800,000 over the five years to pay for fire stations and training for the Volunteer Fire Department.

Parcel Tax. A parcel tax in the Weed Recreation and Parks District to operate and maintain the Weed Community Center was voted down, getting 55 percent of the vote (needed two-thirds).

SOLANO COUNTY:

Hotel Tax. Measure D validates a 10 percent hotel tax adopted in 1991 by Suisun City but never imposed. A 100-room hotel is under consideration, and voters want the revenue, approving the tax by 70.9 percent.

SONOMA COUNTY:

Parcel Tax. The Sonoma County Health Care District sought a $130 parcel property tax, expected to raise $2 million. It was extremely popular, winning with 83.8 percent of the vote.

TRINITY COUNTY:

Hotel Tax. The measure to double the Trinity County hotel tax from 5 percent to 10 percent met opposition from those who hunt and fish, and it was trounced, getting only 34.1 percent of the vote.

VENTURA COUNTY:

Business License Tax. Measure T, continuing the tax of 50 cents per $1,000 of gross receipts, was approved by 56.6 percent.

Parcel Tax. Fillmore’s planned $15 parcel tax to fund swimming pool maintenance was dunked, getting 65.3 percent (needing two-thirds).

YOLO COUNTY:

Sales Tax. Woodland’s proposal to extend its current 0.5 percent sales tax by six years was unpopular, getting only 29.3 percent support.

Parcel Tax. Davis won 79.1 percent support for its measure to continue the $49 parcel property tax for city park maintenance.

Special Tax. The Winters Branch Library Financing Authority proposed a $66 parcel property tax to fund the cost of the Yolo County library in Winters. Needing two-thirds, it got 52.1 percent.

Levee Taxes. A pair of advisory votes in Woodland on whether additional sales tax should be imposed to fund types of flood protection levees were rejected. One got 45.3 percent, the other 41.0 percent.