Davis officials seek to renew 1 percent sales tax indefinitely with Measure Q

Davis officials are campaigning hard for the renewal of a 1 percent sales tax on the upcoming March ballot.

A “yes” vote for Measure Q would indefinitely extend an existing sales tax that was approved in 2014, setting the city’s overall sales tax rate at 8.25 percent. The 1 percent tax generates roughly $8.6 million each year, and makes up about 15 percent of the city’s general budget. City officials kicked off the renewal campaign last Friday.

“The reality is this is an important piece of revenue for the city and it’s important that it continues on an ongoing basis,” said Mayor Brett Lee. “For all the services the city provides, we’ve become dependent on this.”

The sales tax funds about two-thirds of the parks and recreation department, and the vast majority of public safety employees, such as firefighters and police officers. The general fund also pays for road, sidewalk and bike path improvements and maintenance, Lee said.

“It’s such a substantial piece of our budget,” Lee said. “Without renewing it, it would cause very significant budget cuts that would affect people’s quality of life.”

Davis’ current sales tax rate, including the city 1 percent component, is 8.25 percent -- lower than Sacramento’s 8.75 percent rate, but higher than Woodland’s 8 percent rate. Lee said there are no plans to raise the sales tax in the near future.

“Davis is a really wonderful place as most anyone will tell you,” said city councilman Dan Carson. “The thing is, we need the resources to keep these great things.”

In September, the City Council declared a fiscal emergency in order to hold a local special election for the sales tax measure this March, even though its regular election has been pushed back to November 2020.

Under the California Constitution, general tax measures must be voted on during regularly scheduled local elections except when a governing body unanimously declares an emergency.

The current sales tax is set to expire at the end of 2020. Waiting to vote on the renewal would’ve meant the city could miss out on $2.2 million in tax revenue, which would have “drastic effects” on city services. according to a previous staff report on the subject.

The Measure Q campaign is supported by the Davis Chamber of Commerce, the Davis Police Officers Association, the Davis City Employees Association, and more than a dozen former local elected officials.

The Renew Davis Committee, the election committee backing Measure Q, has already raised more than $10,300 this year as of the end of September, according to the latest campaign filing.

“People recognize this is a reasonable and fiscally responsible approach to keeping the things in Davis they all love,” Carson said.

Measure Q requires only a simple majority to pass, and would remain in place unless repealed by the voters.

This story was originally published November 11, 2019 at 3:14 PM.