(1) Discussion on the historical San Benito County's measure cost and the potential options of proceeding with public education and feasibility polling for a Transaction and Use Tax (TUTs) measure in the November 2022 Election; (2) direct staff to draft a resolution placing a countywide Transaction and Use Tax (TUTs) measure on the November 2022 Election; (3) and authorize CAO or designee to move forward with a contract to conduct polling and public engagement.
At the Board of Supervisors meeting on February 8, 2022, staff presented the potential of moving forward with a General election to implement a 1% of Transaction and Use Tax. The Board requested additional information on the historical cost of tax measures and the cost of public education and feasibility polling, and the county cost of implementing a measure.
The county worked with Clifford Moss and EMC research to conduct polls and community engagement in the past to measure the feasibility of placing a special tax on the ballot for voters to then make the final decision - specifically San Benito COG's Measure G, and the feasibility of a potential new Library. If the Board wishes to implement a feasibility study/polling and process of public engagement, the county would have to move forward quickly to implement the timeline outlined below.
To conduct a polling survey and assess feasibility, we would have to quickly create a survey that would collect a quantitative public opinion poll. Feasibility would provide clarity to assist the County in navigating how to move forward. If the measure is feasible, the Board of Supervisors and County staff would feel more comfortable continuing with public engagement to listen to the community and potentially place a measure on the ballot in the summer (for voters to ultimately decide in November 2022).
POLLING is a step in balancing the unique equation between San Benito County's needs and your community. Polling helps assess the feasibility and potential options :
• Ballot Language,
• Funding Mechanism,
• Specific Priorities,
• Messaging & Engagement,
• Timing,
• Funding Amount, and
• Election Type and Date.
If the Board decided to move forward cost of polling and the public engagement, this would cost $50,000.00
The cost to the County to bring forth a measure vary, and there are four factors used to determine the price of a measure:
- Date of the election (ex: primary vs. general).
- Body of the measure (ex: full text printed or posted on our website).
- Cost of materials (ex: CY 2022 experiencing 7-10% cost increase).
- Total content on the ballot (ex: additional content allows cost-sharing).
The cost for the proposed tax measure on the November 8, 2022 Election would most likely range between $20,000-$30,000.
Actual measure costs are listed below:
On March 03, 2020, Measure K: Shall Ordinance No. 991, An Ordinance of the Board of Supervisors of the County of San Benito Amending the San Benito County Code to add text relating to the "Regional Commercial (C-3) District" be adopted?
Cost: $14,347.82
On November 06, 2018; Measure H: To provide and increase law enforcement, fire services, road maintenance, and other local governmental services, shall the proposed business license tax ordinance be adopted and enacted to impose a business license tax at a rate of $30 to $118 per business, $.66 to $7.80 per employee, and $.10 per ton of minerals depleted, indexed by a COLA, in the unincorporated area of San Benito County?
Cost: $13,197.65
Also, on November 06, 2018; Measure G: Shall the voters authorize a San Benito County Roads and Transportation Safety and Investment Plan to: repair potholes and maintain roads; widen Highway 25 to relieve traffic congestion and make it safer; improve pedestrian, bicycle, and transit options; and, qualify for state and federal matching funds by enacting a one cent sales tax, raising approximately $16,000,000 annually over 30 years, with annual audits, independent oversight, all funds spent locally, and a detailed expenditure plan?
Cost: $53,236.40
On June 07, 2016; Measure P; Shall the voters authorize implementing the San Benito County Transportation Safety and Investment Plan to:
· Repair and maintain roads;
· Improve safety and relieve congestion on Highway 25;
· Improve safety and traffic flow on local roads;
· Increase bicycle and pedestrian safety; and
· Improve transit services for youth, seniors, and people with disabilities by enacting a half-cent sales tax, raising approximately $8 million annually over 30 years, with annual audits by an independent oversight committee?
Cost: $13,366.43
On November 4, 2014, three Election Measures including H, I, and J. The total combined cost of all three measures was: $50,427.63 for the three measures ($16k average) – significant to note considerable cost savings during the November 2014 election. The estimated cost for a single measure would have been approximently$20k.
Each measure is listed below:
H: Should the San Benito County Vehicle Abatement Program and associated vehicle registration fees ($1.00 dollar per vehicle and an additional $2.00 dollars for certain commercial vehicles) be renewed for a ten-year term under California Vehicle Code Sections 9250.7 and 22710, or any successor statutes thereto, for the purposes of removal and disposal of abandoned, wrecked, dismantled, or inoperative vehicles?
I; Shall the ordinance, approved for submittal to the voters by San Benito County Resolution 2014-74, be adopted to amend the San Benito County Code to (1) increase the Transient Occupancy Tax rate from eight (8%) to twelve (12%) percent upon persons occupying hotels within the County's unincorporated area and (2) amend the definition of "operator", so the tax is collected by all persons receiving consideration from the rental, including on-line hotel brokers and vacation rental agencies?
J; Shall San Benito County's General Plan be amended to ban High-Intensity Petroleum Operations (such as hydraulic fracturing, also known as fracking, acid well stimulation, and cyclic steam injection, but not Low-Intensity Petroleum Operations) throughout all unincorporated areas, and all Petroleum Operations in residential general plan designations of Rural, Rural Transitional, Rural Residential, Rural/Urban, and Sphere of Influence Rural/Urban, with related zoning changes to implement the new General Plan policies?
Overview of Sales Tax in the County of San Benito
The sales tax rate in the unincorporated area of the County of San Benito currently is 8.25%. Sales tax rates can vary from jurisdiction to jurisdiction based on the voters in that jurisdiction's approval in looking through the State website. Sales tax rates in California range from 7.25% to 10.75%, when special legislation has been adopted. The allowable range without special legislation is 7.25% to 9.25%. In California, the state sales tax is 7.25%, and local governments can collect an option sales tax of up to 2%, without special legislation. The statewide average sales tax is 8.492%. The City of Hollister currently has a tax rate of 9.25%, and the City of San Juan Bautista is 9%.
Potential Impact on Local Sales
For example, for every $100 spent, an additional one percent sales tax increase would result in an additional $1.00 paid by the consumer. Sales tax data trends show that an increase in the sales tax rate of one percent has no noticeable effect on the number of taxable goods consumers buy. In other words, the businesses did not experience a decline in sales due to the sales tax rate in other jurisdictions where the sales tax has been increased. A one percent sales tax measure is estimated to bring in approximately $3.34 million annually to the County if passed and approved by the voters.
Sales Tax Measure Process
Regarding increases in the sales tax rate, the change must be approved by the voters to make a change to any general tax rate. The County Board of supervisors does not have the authority to raise taxes, only to bring a measure on the ballot. To place a tax measure on November 8, 2022; ballot would require 2/3 board approval (e.g. four votes). The deadline to submit the measure to the elections department is August 12, 2022.