Measure "SG" is the City of San Gabriel Transactions and Use Tax Ordinance of 2020. If approved by the voters, the ordinance would adopt a three-quarters of one percent (0.75%) tax on every dollar of taxable sales of goods in the City. Revenue collected from this tax would be spent exclusively on local City Services such as Police and Fire protection and street repaving. A three-quarters of one percent (0.75%) rate equates to 75¢ of tax per $100 of taxable goods purchased.
The proposed tax is a general tax. It is estimated that Measure "SG" will annually provide $3,000,000 in local revenue for use in the City. The City Council's adopted ballot question states that this new revenue would be used for essential services such as Police and Fire personnel, Community Services programming, hours of operation at City facilities, community events, General Fund street repaving and other similar needs.
California Revenue and Taxation Code Section 7285.9 authorizes the City to levy this tax with the majority approval of the voters. This measure was placed on the ballot by unanimous approval of the City Council Members present at the October 15, 2019 meeting. If approved, this tax may not be increased beyond the amount specified without voter approval. It would remain in effect until repealed by the voters.
Revenue from this tax would be collected by the State of California under a contract with the City in the same manner as existing sales tax. All revenues raised by the tax would remain in the City and would not be shared with the State, County or any other agency. Accountability for these funds will be part of the City's Annual Financial Audit conducted by the City's third-party auditor, the report of which shall be made available to the public.
If Measure "SG" is not approved, the City's 5-Year Budget Projections show that a General Fund deficit will occur next year and continue to grow into the future. Without additional revenue, City services will need to be cut in order to balance the budget. Services that could be cut or reduced include Police and Fire protection, maintenance of infrastructure and street repaving.
By placing Measure "SG" on the ballot, the City complies with Article XIIIC of the California Constitution (Proposition 218), which requires a majority of the voters to approve an ordinance which establishes a general tax. A "yes" vote on Measure "SG" will authorize a three-quarters of one percent (0.75%) transactions and use (sales) tax. A "no" vote on Measure "SG" will not authorize the three-quarters of one percent (0.75%) transactions and use (sales) tax.
