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Santa Cruz County, CA November 7, 2006 Election
Measure H
Sales Tax Replacement
City of Santa Cruz

12,310 / 58.04% Yes votes ...... 8,901 / 41.96% No votes

See Also: Index of all Measures

Results as of December 1 10:01am, 100.00%% of Precincts Reporting (44/44)
Information shown below: Official Information | Impartial Analysis |

Shall the one-quarter of one percent City of Santa Cruz General Fund sales tax that was approved in 2004 for a five-year period be replaced with a one-half of one percent General Fund sales tax for local use only, without a sunset provision, to help limit future budget cuts, repair the City's streets, support public safety, and provide additional security and maintenance for City parks?

Official Sources of Information
Impartial Analysis from City Attorney
In 2004 City voters approved a ballot initiative which served to enact a temporary five-year one quarter of one percent (1/4%) increase to the sales tax rate in the City of Santa Cruz. The sales tax is also referred to as a "transactions and use tax." As a result the current sales tax rate in the City of Santa Cruz is eight and one quarter percent (8 1/4%) and that sales tax rate is presently scheduled to "sunset" in 2009 at which time the sales tax rate would revert to the former eight percent (8%) rate. First Woman Mayor of Santa Cruz

This ballot measure, if adopted by the voters, would replace the current temporary eight and one quarter of one percent (8 1/4%) sales tax rate in the City of Santa Cruz with a permanent eight and one half of one percent (8 1/2%) sales tax rate. The proposed sales tax, like the current sales tax, would be imposed upon the sale of all tangible personal property sold at retail within the jurisdictional limits of the City as well as upon the storage, use or other consumption of tangible personal property purchased from any retailer in the jurisdictional limits of the City.

All revenue generated from the proposed sales tax would be deposited into the City's General Fund and, accordingly, all monies collected pursuant to the sales tax would be available for use by the City to pay for general City operations and services. The Santa Cruz City Council, in conjunction with its placement of this initiative on the November 2006 ballot, adopted a resolution stating that it is the City Council's intent and goal that upon adoption of this sales tax ballot measure, the City will use one half of the revenue generated by that sales tax measure for the general City operations, services and programs and will devote the other half of those revenues to City programs which underwrite street maintenance and repairs, City parks maintenance and supervision, and public safety. The resolution strongly encourages all future City Councils to similarly allocate the sales tax proceeds for these same purposes.

This ballot measure proposes a "general tax," rather than a "special purpose tax," and therefore requires a simple majority for adoption.

s/ John G. Barisone
City Attorney

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