Monday, October 08, 2012

Measure D, Carmel-by-the-Sea Sales Tax Increase & California Proposition 30, Sales and Income Tax Increase, General Election Ballot 6 November 2012

ABSTRACT: The City of Carmel-by-the-Sea’s Measure D text, IMPARTIAL ANALYSIS BY CITY ATTORNEY and ARGUMENT IN FAVOR OF MEASURE D is reproduced from the MONTEREY COUNTY VOTER GUIDE. If approved by a majority of voters, Measure D will increase the local transaction and use tax (“sales tax”) in the City of Carmel-by-the-Sea from the current 7.25% to 8.25%, a 13.8% percentage increase.  Additionally, Proposition 30, a Sales and Income Tax Increase Initiative, also appears on the California 6 November 2012 ballot; Ballot title, summary and LAO analysis of Proposition 30, Arguments for and against Proposition 30 and the complete November 6, 2012 Official Voter Guide documents are embedded. If approved by voters, Proposition 30 will raise California’s sales tax to 7.50% from 7.25%, a 3.45% percentage increase over current law.



“Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual independent audit, to maintain essential services including fire, ambulance and police response times; fund capital needs including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general City services?”


IMPARTIAL ANALYSIS BY CITY ATTORNEY 
MEASURE D

The Carmel-by-the-Sea Vital City Services Measure D proposes to raise revenue for general purpose use by the City of Carmel-by-the-Sea by authorizing a temporary one percent (1%) transaction and use tax (commonly referred to as a “sales tax”) for a period of ten (10) years, to include an independent annual audit of funds. The one percent (1%) tax would be paid in addition to the current transaction and use tax and would be collected at the same time and in the same manner as the existing transaction and uses tax.

California Revenue and Taxation Code Section 7285.9 authorizes the City Council to levy a transaction and use tax at a rate of 0.25 percent or a multiple thereof, provided the tax is approved by a majority of the voters in an election on that issue. The proposed tax will increase the local transaction and use tax (“sales tax”) in the City of Carmel-by-the-Sea from the current 7.25% to 8.25%.

The City of Carmel-by-the-Sea Vital City Services Measure D states that the one percent (1%) transaction and use tax increase is to be used to maintain essential services including fire, ambulance and police response times; fund capital needs including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general City services.

/s/ Donald G. Freeman
City Attorney


ARGUMENT IN FAVOR OF MEASURE D

Please join in supporting “YES” on Measure D to preserve Carmel’s past and strengthen our future.

Measure D will support Carmel-by-the-Sea’s high-quality services including roads, parks, public libraries, performing arts, our beach, and life-saving response times from police, fire and ambulance.

Carmel-by-the-Sea is well managed. It has refinanced debt, saving over a million dollars. It streamlined and reduced its workforce and reformed pensions for new employees. Carmel-by-the-Sea is a good partner to business, crating a Hospitality Improvement District.

We cannot take this for granted.

The economic downturn gas affected us all and has made it difficult for Carmel-by-the-Sea to continue providing high-quality services and maintaining roads and other infrastructure. We cannot look to the state or federal government for help. We must take care of ourselves.

Measure D will ensure that our visitors and all downtown shoppers share in supporting our community. The current sales tax in Carmel-by-the-Sea is 7.25%, which means that for every $100 purchase, the consumer pays an additional $7.25, but currently Carmel-by-the-Sea only receives $1 of that. Measure D will double the amount Carmel-by-the-Sea receives to $2 for every $100 purchase.

Carmel-by-the-Sea’s sales tax is at the lowest level on the Peninsula. Measure D will return the sales tax to what is was just over a year ago and will bring it in line with the rates paid by most of our visitors when they shop back home.

Measure D will keep us on track to pay off key pension liabilities, saving millions of dollars in interest payments.

For these reasons, Measure D has broad support. The Carmel City Council, the Carmel Chamber of Commerce, the Carmel Residents Association, the Carmel Innkeepers, Monterey Peninsula Taxpayers’ Association, and many of your neighbors are supporting Measure D. We hope that we can count on your “YES” vote.

/s/ Jason Burnett
Mayor of Carmel-by-the-Sea

/s/ Merv Sutton
Community Leader

/s/ Bill Doolittle
Retired Investment Advisor

/s/ Carrie Theis
President, Carmel Innkeepers Association

/s/ Doug Lumsden
Chair, Carmel Chamber of Commerce


REBUTTAL TO ARGUMENT IN FAVOR MEASURE D 

No arguments were submitted against this measure; therefore, there is no rebuttal.



PROPOSITION 30 
TEMPORARY TAXES TO FUND EDUCATION. 
GUARANTEED LOCAL PUBLIC SAFETY FUNDING. 
INITIATIVE CONSTITUTIONAL AMENDMENT.

Summary:
  • Increases personal income tax on annual earnings over $250,000 for seven years.
  • Increases sales and use tax by ¼ cent for four years.
  • Allocates temporary tax revenues 89% to K–12 schools and 11% to community colleges.
  • Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are to be spent.
  • Guarantees funding for public safety services realigned from state to local governments.
Note: If Proposition 30 is approved, it will change the California Constitution by adding a proposed new Section 36 to Article XIII of the California constitution.

Ballot title, summary and LAO analysis of Proposition 30

Arguments for and against Proposition 30

Complete November 6, 2012 Official Voter Guide

ADDENDUM: 
California Proposition 30, Sales and Income Tax Increase (2012)

No comments: