Here’s what will cost more in Elk Grove after sales tax hike. How does it compare?

Starting in April, Elk Grove residents are paying a higher sales tax.

Measure E, the Safety and Quality of Life Measure, was on the November 2022 ballot. More than half of Elk Grove voters backed the measure, despite recent inflation and price increases. Final count results tallied in 54% of residents backing the measure, and 45% opposing it.

Here’s what you should know about the change:

How much is the sales tax increase?

Elk Grove’s sales tax was 7.75% and rose to 8.75% on April 1.

Where will the funds go?

The increase in the city’s sales tax is part of a Safety and Quality of Life Measure. The city-backed, Measure E will raise more than $21 million annually with increased revenue going towards some of the following efforts:

• Public safety
• Emergency response
• Efforts to address homelessness
• Street, road and park maintenance
• Economic development
• Clean and safe public areas

What is and isn’t taxed at 8.75%?

This hike increases the city’s transaction and use tax, meaning goods and services will come with a higher price tag.

According to the state’s website, sales and use tax “applies to all retail sales of goods and merchandise except those sales specifically exempted by law.”

Elk Grove’s tax increase will not affect the following amenities and items:

• Rent
• Utilities
• Groceries
• Medicine
• Money can’t be diverted to state or federal coffers, according to city officials.

This story was originally published April 4, 2023 at 3:15 PM.