Tuesday, March 10, 2020

California Sales Tax: Not High Enough?

(Tax Foundation graphic)
California has the highest state-wide Sales Tax rate of 7.25%. When one adds in average local Sales Tax rates, we're #9 at 8.66%.

Proponents of transportation and housing want to add another full percentage point to the sales tax rate, which would make California #1 overall. [bold added]
They’re pushing for a single ballot measure that, if approved by two-thirds of voters, would raise sales taxes across the nine counties by 1%, generating $100 billion over 40 years to split between housing and transportation.

...backers of the combined ballot measure face an aggressive timeline. Their idea would require state legislation to grant taxing authority to a regional agency. That legislation has to pass both houses with a two-thirds vote by summer recess. It would then need approval by the Metropolitan Transportation Commission before the campaign can draft ballot language in August. And then there’s the challenge of wooing voters, who would have to pass the measure by a two-thirds majority.
Last July we noted that California has some of the highest gas, sales, and income taxes in the nation. Property tax increases are constrained by Proposition 13, which tax-and-spenders have tried to repeal since 1978 (they're trying again for a partial repeal this November).

The good news is that, even in this force-them-out-of-their-cars State, the voters had had enough of transportation measures.

Has the push to expand rail into the Bay Area’s fringes reached the end of the line?
Suburban voters with long commutes have rejected two tax measures that aimed to drum up funding for roads and transit — raising the question of whether the push to expand rail into the outer reaches of the Bay Area has run its course.
Marin, Sonoma county voters say no to SMART train tax measure

Contra Costa County voters reject sales tax for transportation

The one-party State keeps pushing for more. One of these days the earth will shift, and they'll act surprised.

Related - too much regulation is antagonizing the Party constituency :
An overwhelming majority of professionals in fields affected by AB5 [the "anti-gig-worker law"] identify as liberals and have generally voted along the blue line. Today, however, many are so disillusioned with their representatives that they’re changing political loyalties.

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