San Francisco Mayor Contemplates Hike In Local Sales Tax

SAN FRANCISCO (KCBS) – Is the sales tax headed higher in San Francisco? Perhaps. Mayor Ed Lee has begun considering a local sales tax measure for the November ballot.

The tax, however, would only be collected if the state sales tax is rolled back on July 1. In other words, the revenue would be used to ‘backfill” state funding cuts.

KCBS’ Barbara Taylor Reports:

The way things stand now, a 1% state sales tax surcharge enacted in 2009 is in fact set to expire this summer. Californians would enjoy a tax break but cities – like San Francisco – would lose revenue.

The local sales tax Lee is contemplating would replace that lost funding.

“So what the mayor is doing here in San Francisco is taking preventative measures, providing the city a safety valve,” explained the mayor’s press secretary, Christine Falvey. “Two-thirds of the voters would have to agree and if the state does extend the sales tax, this measure would be pulled back and that would be written into the ballot language if this goes forward.”

It was unclear how much a proposed local sales tax increase would be, though it was considered highly likely that it would correlate to the amount San Francisco stood to lose in state funding.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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