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Fiscal Impact Statement Measure G

Edith Driscoll, County Auditor-Controller

Sales Tax Rate Increase of One-Half Percent in unincorporated area for 12 years

The sales tax rate in the County of Santa Cruz is currently 8.50%, or 8.50 cents on every dollar. Of this amount, the County currently receives 1%, or one cent on every dollar for County Operations. These funds are used to pay for a variety of general County services such as Sheriffs, Parks, Homelessness Programs and Mental Health Services.

If approved by the voters, this measure would increase the total sales tax rate in the unincorporated area to 9.00% for 12 years and the County would receive an additional one-half percent (1/2%) for general County services.

The current 1% sales tax rate generated $11,514,343 for County Operations in the fiscal year July 1, 2017, to June 30, 2018. The proposed one-half percent (1/2%) increase in the local sales tax rate would annually generate an additional $5,757,171 to support general County services. This is an approximation of the amount that can be expected annually during the twelve-year period the tax would be in effect. Actual sales tax collections will vary from year to year depending upon economic conditions.

Distribution of the current 8.50% sales tax rate:

6.00%     -Goes to State General Fund and Other State Funds

1.00%     -Goes to County Operations

0.25%     -Goes to County Transportation Funds

0.50%     -Goes to Santa Cruz Metro Transit District

0.50%     -Goes to Santa Cruz County Transportation Improvement Plan, Measure D

0.25%     -Goes to the Library Authority

8.50%  Total Sales Tax Rate, Santa Cruz County Unincorporated Area