Oceanside wants to extend its half-cent sales tax

When the iconic Oceanside Pier caught fire, workers and tools paid for by the city's sales tax revenue helped put out the flames.

That sales tax was passed in November 2018 by voters who approved Measure X, a half-cent increase to bring Oceanside's tax rate up to 8.25%.

“You had saws that they used to cut the trench to prevent the fire that was funded by Measure X drones, funded by Measure X. So that was really instrumental, too,” said City Manager Michael Gossman, about the Oceanside Pier fire.

The sales tax was expected to bring in about $11 million in annual revenue. It has consistently exceeded that and is closer to $20 million this fiscal year, according to the city.

"We focus on what people tell us they want to see the money go to," Grossman said. "We really stick true to that infrastructure, public safety, homelessness. That half-cent that they're paying, they're getting right back in terms of value added, in terms of improved streets."

The revenue collected over the last five years has expanded homelessness outreach, has helped the city hire more EMTs (and create a pipeline of "homegrown" future firefighters) and has paved more than 500 lane miles of roads.

"It's one of those things you don't realize how bad the roads are until they fix them and then they're nice and smooth and then you go, 'They really were pretty bad,'" said Emily Bradsher, who owns Oceanside Truck Service. “As a taxpayer, I think it's just nice to know that our taxes are going to something that's tangible, something you can see, you can feel every day.”

According to Gossman, a little under two-thirds of sales tax revenue in Oceanside comes from non-residents, tourists and businesses.

Measure X was slated to be a seven-year sales tax, but Gossman is recommending the city council put a renewal measure on the ballot in November.

"As a taxpayer, I think it's just nice to know that our taxes are going to something that's tangible, something you can see, you can feel every day,” said Gossman, who said money is not all Measure X funds can save. "I think that we have saved lives through these programs, providing people a place to sleep through the hotel voucher program that we were funding.”

Sales taxes are regressive. People pay the same tax rate regardless of their income. However, University of San Diego economist Alan Gin said exemptions for essentials like groceries and prescription medicine make a tax like this less regressive.

“The City of Oceanside is using this money then on things like public safety and infrastructure and the homeless. And so if those programs are beneficial, then that's a net positive to the community,” said Gin.

In June, the Oceanside City Council could pave the way for voters in November to renew Measure X at the same rate

“Obviously, everybody's money is a little bit tight right now, so it's kind of hard to justify further expenses,” said business owner Bradsher. “But as far as it for being such a small sales tax and an increase that we already have, I wouldn't be opposed to seeing it extended. Our roads need a lot of work, so it'd be nice to see them getting done right.”