A Sales Tax Compromise at City Hall

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    NEWSLETTERS

    TK
    VladKol, Shutterstock

    A proposal to ask San Diego voters to approve a half-cent sales tax increase -- a levy conditioned on the implement 11 fiscal reform measures -- gained the preliminary endorsement of the City Council Friday.

    By a 6-2 majority, the Council directed the city attorney's office to draft a measure whose language would address a variety of legal issues raised during a 2.5-hour hearing at City Hall.

    The Council has scheduled a special meeting Monday to review the proposal, which must be approved by Aug. 6 in order to be placed on the Nov. 2 ballot.

    A Sales Tax Compromise at City Hall

    [DGO] A Sales Tax Compromise at City Hall
    A proposal to ask San Diego voters to approve a half-cent sales tax increase -- a levy conditioned on the implement 11 fiscal reform measures -- gained the preliminary endorsement of the City Council Friday.

    If voters ultimately approve the measure, San Diego's sales tax rate would increase to 9.25 cents on the dollar once the city auditor certifies that the fiscal reform provisions -- which call for further privatizing of city services and operations and reductions in labor costs -- have been met, and the City Council passes an ordinance to put the levy into effect.

    The tax increase would generate an projected $103 million a year for the city's general fund. The city currently faces a $72 million budget shortfall for the fiscal year beginning July 1, 2011.