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Sacramento Proposes To Raise City Sales Tax Half Cent

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SACRAMENTO (CBS13) – The Sacramento City Council is considering a half-cent sales tax increase, which would go to voters in November.

If passed, it would bring in millions of dollars to city coffers.

A day at the mall may soon cost more money.

The current sales tax in Sacramento is 7.75 percent. The proposal would go up to 8.25 percent.

The annual tax revenue in Sacramento is down $28 million from its peak in 2007.

So the city wants voters to consider a half cent sales tax increase, which could bring in more than $30 million.

CBS13 asked shoppers to show us their receipts.

One customer bought an item for $5.42. If the tax passes, it would cost him 35 cents more.

In each case it would only cost shoppers, at most, a few bucks.

But for big ticket items like cars, it could really add up.

The increase would only apply to people who live in Sacramento, since sales tax on cars is based on where customers live.

Money would go straight to the city’s general fund, where it could be spent on things like increased public safety and parks, which have seen huge budget cuts in the past few years.

On Thursday, the council decided to move forward with the ballot initiative, although some expressed concerns over potential impacts to local businesses.

“There is absolutely no doubt that increasing the sales tax will have an impact on how much people spend in the city of Sacramento,” said Vice Mayor Angelique Ashby.

Next week the city council will vote whether to put the proposed tax increase on the ballot.

And if that happens, ultimately it will be up to voters in November.

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