The City of San Diego (City) placed Measure E on the ballot for the voters to decide whether to amend the Municipal Code to add a one percent (1.00%) general transactions and use tax (commonly known as a “sales tax”) to the retail sales price, or one cent for an item that costs one dollar. Currently, the tax on retail sales within the City is 7.75%, of which the City receives 1.00% (i.e., one cent per transaction) directly from the State.
The City estimates that the 1.00% tax increase proposed by this measure would result in additional revenue of approximately $400 million annually to the City until repealed by the voters. The revenues from the tax increase would supplement, not replace, existing expenditures from the City’s General Fund.
This is a “general tax,” not a “special tax,” because this measure does not legally restrict the use of tax revenue to any specific purposes. The proceeds may be used for general municipal services and all lawful public purposes including, but not limited to, providing public safety services; repairing and maintaining public infrastructure such as streets, sidewalks, and storm drains; and maintaining or improving upon the level of City services to residents.
On July 22, 2024, City Council approved the ordinance for submission to the voters. If approved by a majority of the voters at the November 5, 2024 election, as authorized by California law, the City will levy the proposed one cent per dollar tax on the sale or use of all tangible personal property sold at retail within the City, with certain exceptions. The tax would be collected in the same manner and at the same time as existing sales taxes. Proceeds will be deposited into the City’s General Fund and subject to the same independent annual audit as other General Fund revenue. An accounting of revenues received and expenditures made from the tax will be presented annually to the City Council and made available for public review through the City’s annual budgetary process.
Source: Measure E Impartial Analysis
