Impartial Analysis of Measure Z

Kirsten Powell, City Attorney

The City Council of the City of Scotts Valley has placed a measure on the ballot asking voters to eliminate the existing 0.50% sales tax and adopt a 1.25% sales tax within the City.  The proposed tax would collect one and a quarter of a cent for every dollar of taxable sales of goods in the City, which is three quarters of a cent more than the existing tax.   The proposed sales tax, like the current sales tax, would be imposed upon the sale of all tangible personal property sold at retail establishments 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 increase would be deposited into the City’s General Fund and, accordingly, all monies collected pursuant to the sales tax increase would be used by the City to pay for general City operations and services, including, police, emergency preparedness, parks and street maintenance. As such, this ballot measure proposes a “general purpose tax” rather than a “special purpose tax” and requires a simple majority vote for adoption.

The sales tax rate for the City of Scotts Valley is currently 9.00%. If the ballot measure is adopted, the sales tax rate would increase to 9.75% beginning July 1, 2020, and ending June 30, 2032.

A “yes” vote on this Measure is a vote in favor of eliminating the existing 0.50% sales tax and adopting a 1.25% sales tax, resulting in a new sales tax of 9.75%.  A “no” vote on this Measure would maintain the current sales tax rate of 9.00%. This Measure will be adopted if it is approved by a majority of voters voting on the ballot measure.