CHICO — Plans for a 1 percent sales tax on the November ballot are moving forward, said Chico City Manager Mark Orme.
The Chico City Council voted 6-0 in October to place an item on the November election ballot that would increase the city’s sales tax by 1 percent. The proposal is the result of a survey conducted by the city that showed voters were in favor of the measure.
“One of the things that the council directed staff to do is come back with appropriate documents for consideration,” Orme said. “We have been putting all of those documents together.”
Orme said Chico’s city clerk, Debbie Presson, has had an opportunity to review the paperwork, as well as Assistant City Attorney Andrew Jared. The next step is to send the documents to the California Department of Tax and Fee Administration for review, “to make sure everything is clean from their perspective as well,” he said.
The proposed sales tax increase is separate from the Measure A vote, which will go to election in March. Measure A seeks to levy a parcel tax of $85 on behalf of the Chico Area Recreation and Park District.
The current sales tax rate in Chico is 7.25 percent; under the proposed measure, the sales tax would be raised to 8.25 percent. The estimated cost per person would be a little less than $200 per year, and the total revenue for the city would be an estimated additional $18 million.
Assistant City Manager Chris Constantin, citing the survey at an October council meeting, reported that voters overwhelmingly answered that something must be done to deal with the surge in population and traffic, and to increase public safety.
Orme said his staff plans to give the necessary documents to the City Council sometime in March, at which point the council will vote to approve the ballot measure or not.
“The City Council is looking to make a determination if the public is interested in helping support the city (with a sales tax),” Orme said. “Due diligence is necessary.”
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January 28, 2020 at 06:30PM
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Chico working to bring new sales tax to November ballot - Chico Enterprise-Record
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