Perceptions Mixed on Sales Tax Increase Proposal

Would Petaluma voters support a sales tax increase in November?

How much is acceptable?

And does it matter what the additional revenue is spent on?

These are some questions the city is pondering as it considers raising its sales tax, which at 8 percent is one of the lowest in Sonoma County.

But the answer may lie more in how much voters trust government than actual dollars and cents raised by the measure.

On Monday, the Petaluma city council decided to move ahead with polling different sectors, including retailers and labor groups to see whether they would support a sales tax increase in November.

Depending on the outcome of those talks, the city would then try to raise money to place a measure on the ballot (which costs between $15,000 and $30,000) or drop the issue altogether.

A half-cent sales tax would raise and additional $5 million a year for the city, money that could be spent on things like repairing streets and hiring back park employees and police officers. Sixty six percent of voters would have to approve the initiative for it to pass.

A non-scientific Petaluma Patch shows that residents are overwhelmingly opposed to bumping up the sales tax, with more than 60 percent of our respondents voting “no.”

But a survey of several local businesses shows that perceptions are mixed on the issue.

“It’s not a make or break situation, but the lower tax is helpful when you’re trying to make a sale,” said Cristina Wilson, co-owner of , a women’s clothing boutique in downtown Petaluma.

But DJ Campagna, a manager of , said that even if the sales tax is increased to 8.5 percent, most customers won’t notice the difference.

“Say you have a $3,000 bike,” Campagna said. “That’s $245 in tax and if you increase it by half a cent, that’s $15. I don’t think it’s going to kill anybody.”

But the concern among many on council—shared by plenty of residents—is that with unemployment still high and the foreclosure rate soaring, the time is not right for any tax measures.

Then, there is the very real issue of voter fatigue.

In November Petaluma residents will be asked to consider a parcel tax put forward by the , to raise money for local parks and recreational facilities along with the governor’s tax proposal, an attempt to raise more money for schools.

“We can’t tax our way to prosperity,” said Councilman Mike Harris on Monday, who is against any tax increases. “With so many different tax increase measures on the ballot, my feeling is that they will all go down in flames.”

Not so, says Councilwoman Tiffany Renee, who has pushed for more than a year to place the issue before the voters.

“There is a lot of distrust of government on the state and federal level, but if we can show voters that we can do a good job with the money and if our measure is crafted correctly, we can succeed,” Renee said.

Per a request from City Manager John Brown, all city department submitted a list of the most pressing items needed. These include hiring a new police sergeant, five new police officers and seven park maintenance workers, buying $3 million worth of new fire equipment, seismic retrofits to the Petaluma Historical Museum and $9 million worth of roadway improvements.

Altogether the list of “most desired items” totals $117 million, which even if the sales tax is increased by half percent, will take more than 23 years to pay for. Currently, the city is discussing a sales tax increase that would “sunset” after about five years.

Mayor Dave Glass said he was open to the idea, but that it was critical to reach out to Auto Row to gauge dealers’ sentiment, since roughly a third of the city’s overall sales receipts originate there. Consumers pay sales tax based on where their vehicles are registered, not where they purchase them.

Still, at least one representative of Petaluma’s Auto Row said he was concerned about the increase, saying it could impact sales. But more than anything, said Ron Coury, director of e-commerce at , is that people are just tired of tax increases, in whatever size, shape or form they come in.

“It’s very difficult for our government to be fiscally responsible, but why should it be carried on the backs of taxpayers? Is the government agency going to come back in three years and tell us they need more? When is enough enough?”

Do you support a sales tax increase? If an increase is passed, would you like to see the additional revenues go for specific issues? Share your thoughts in the comments.