Jeff LeTowt: ‘you are just going to end up really unfairly gouging citizens and our visitors of this great town and you are doing so in a down economy, it’s just not right.’

ABSTRACT: At the 7 August 2012 City Council Meeting, during Public Appearances, Jeff LeTowt, owner of The Tuck Box restaurant, made a statement and submitted a Petition against the proposed sales tax increase. Mr. LeTowt’s statement is transcribed.  California Sales & Use Tax Rates, California State Board of Equalization information including History of Sales & Use Tax Rates and California City & County Sales & Use Tax Rates for Peninsula Cities and Cities in Monterey County are presented.

CITY COUNCIL 

CITY OF CARMEL-BY-THE-SEA 

Regular Meeting 

Tuesday, August 7, 2012

VI. Public Appearances

“Good afternoon. My name is Jeff LeTowt. I own the Tuck Box restaurant here in town. And I would like to address the decision to put a sales tax increase on the November ballot. I spent several hours walking around town talking to business owners and citizens and I got to report it’s not very popular. And I got dozens of signatures from business owners and citizens here I would happily submit.”

“Just to note, sales tax started in California in 1933. It was 2.5%. It is now a lot more and increasing it again is really the essence of a disturbing trend. And if you look at most of the cities facing bankruptcy or in bankruptcy, they all have a higher sales tax than we do now, it didn’t help them and it’s not going to help Carmel. In fact, you are just going to end up really unfairly gouging citizens and our visitors of this great town and you are doing so in a down economy, it’s just not right. And this town is a major destination and we all depend on those visitors for much of our revenue and increasing the sales tax makes us much less competitive to other destinations.”

“Recently, I have looked at the verbiage that will appear on the ballot describing the sales tax increase and what it will pay for, and go through maintenance, roads, street, police and fire, and then at the very bottom you got the real reason for the sales tax increase and that’s the massively, unsustainable pension obligations CalPERS. Now without question, I’m sure all you have the best intentions for the tax increase, the issuance of bonds, but unless you address the real problem, you’re never going to escape that specter of insolvency. You need to have pension reform or at least begin to talk about it otherwise this is all for nothing. So I humbly request you look into some kind of pension reform. Thank you for your time.”

Source: Archived Video City Council Meeting August 7, 2012

Notes: City Council approved a contract amendment to implement the 2% @ 60, 3-Year Final Compensation Retirement Plan for miscellaneous employees hired on or after April 15, 2012; and 2% @ 50 3-Year Final Compensation Retirement Plan for Safety Employees hired on or after April 15, 2012.

FISCAL IMPACT: There are no immediate savings anticipated from the implementation of this two-tier system as the reduced contribution rate applies only to new hires. Long term savings will be realized, however, as staff turnover occurs.
Source: STAFF REPORT, Jason Stilwell, City Administrator, 6 March 2012.

Petition Opposing Sales Tax Increase OCR Document

Petition: “As a business owner and/or a citizen in Carmel-by-the-Sea, I am opposed to any sales tax increase.”

California Sales & Use Tax Rates
California State Board of Equalization

History of Sales & Use Tax Rates

Effective Date	End Date	State Rate	Local Rate	Combined Rate
07/01/11	Current	6.25%*	1.00%*	7.25%
4/01/09	6/30/11	7.25%*	1.00%*	8.25%
7/01/04	3/31/09	6.25%*	1.00%*	7.25%
1/01/02	6/30/04	6.00%	1.25%	7.25%
1/01/01	12/31/01	5.75%	1.25%	7.00%
7/15/91	12/31/00	6.00%	1.25%	7.25%
1/01/91	7/14/91	4.75%	1.25%	6.00%
12/01/89	12/31/90	5.00%	1.25%	6.25%
4/01/74	11/30/89	4.75%	1.25%	6.00%
10/01/73	3/31/74	3.75%	1.25%	5.00%
7/01/73	9/30/73	4.75%	1.25%	6.00%
7/01/72	6/30/73	3.75%	1.25%	5.00%
8/01/67	6/30/72	4.00%	1.00%	5.00%
1/01/62	7/31/67	3.00%	1.00%	4.00%
7/01/49	12/31/61	3.00%		3.00%
7/01/43	6/30/49	2.50%		2.50%
7/01/35	6/30/43	3.00%		3.00%
8/01/33**	6/30/35**	2.50%		2.50%

 * Effective July 1, 2004, the rates on a sales tax return do not match these rates. This is due to changes of the funding procedure involving sales, local, and property taxes implemented as a result of the March 2, 2004, voter approval of the "Economic Recovery Bond Act." Please refer to Return and Schedule A Instructions of the State, Local, and District Sales and Use Tax Return for more information. 

** Sales tax only. The use tax was enacted effective July 1, 1935.

 California City & County Sales & Use Tax Rates
Data Last Updated: 7/2/2012

Location	Rate	Counties
Carmel Valley	7.250 %	Monterey
Carmel*	7.250 %	Monterey
Del Rey Oaks*	8.250 %	Monterey
Marina*	8.250 %	Monterey
Monterey*	7.250 %	Monterey
Pacific Grove*	8.250 %	Monterey
Sand City*	7.750 %	Monterey
Seaside*	8.250 %	Monterey

California City & County Sales & Use Tax Rates
Data Last Updated: 7/2/2012

Counties	Rate	Location
Monterey	7.250 %	Aromas
Monterey	7.250 %	Big Sur
Monterey	7.250 %	Bradley
Monterey	7.250 %	Camp Roberts
Monterey	7.250 %	Carmel Rancho
Monterey	7.250 %	Carmel Valley
Monterey	7.250 %	Carmel*
Monterey	7.250 %	Castroville
Monterey	7.250 %	Chualar
Monterey	7.250 %	Del Monte Park (Monterey*)
Monterey	7.250 %	Fort Ord (Seaside*)
Monterey	7.250 %	Gonzales*
Monterey	7.250 %	Greenfield*
Monterey	7.250 %	Jolon
Monterey	7.250 %	King City*
Monterey	7.250 %	Lockwood
Monterey	7.250 %	Lucia
Monterey	7.250 %	Monterey*
Monterey	7.250 %	Moss Landing
Monterey	7.250 %	Pajaro
Monterey	7.250 %	Parkfield
Monterey	7.250 %	Pebble Beach
Monterey	7.250 %	Presidio of Monterey (Monterey*)
Monterey	7.250 %	Priest Valley
Monterey	7.250 %	Prunedale
Monterey	7.250 %	Royal Oaks
Monterey	7.250 %	San Ardo
Monterey	7.250 %	San Lucas
Monterey	7.250 %	Soledad*
Monterey	7.250 %	Spreckels
Monterey	7.250 %	U.S. Naval Postgrad School (Monterey*)
Monterey	7.750 %	Salinas*
Monterey	7.750 %	Sand City*
Monterey	8.250 %	Del Rey Oaks*
Monterey	8.250 %	Marina*
Monterey	8.250 %	Pacific Grove*
Monterey	8.250 %	Seaside*

ADDENDUM:
California City and County Sales and Use Tax Rates

Tax Rate FAQ for Sales & Use Tax