RANCHO CORDOVA (CBS13) – City leaders in Rancho Cordova are considering raising taxes to pay for pandemic losses with a new half-cent sales tax on the Nov. ballot.
Korri Skinner and her boyfriend both lost their jobs when the pandemic hit. With a new three-month-old baby, she’s opposed to any extra tax expenses.
“Corona has really impacted us very financially,” Skinner said. “I think that would be horrible, I think that would be the worst decision ever. We’re already in a hardship and it’s a very hard time right now.”
And she’s not the only one opposed.
“All they want to do is tax you and tax you and tax you,” Rick Parker said.
But Rancho Cordova city leaders say they’ve lost an estimated $5 million in revenue since coronavirus surfaced. Though the city has already reduced spending by $3 million through salary freezes and putting projects on hold, they say a new half-cent sales tax increase would allow them to continue spending money on things like improving roads, public safety, and homeless outreach.
A recent city survey shows more than 60% of people support a tax increase.
“Just a little bite at the cash register, just a few cents here and there, I don’t see it being too difficult,” Tom Price said.
E-Z stop owner Parvinder Singh says the extra tax is needed to prevent a deficit.
“They will not even notice,” Singh said. “Right now we are in a serious pandemic, and we have to spend a lot. Eventually, this money has to come from somewhere in the future.”
But others think now is not the right time to raise taxes.
“I understand the city is struggling too, but so is the economy, so are the people out here struggling,” Timmy Rodgers said.
“I think they can hold off on doing it for better times,” Holly Parker said.
If voters approve it, the new sales tax would be 8.75%, the same as Sacramento city’s tax, but a full percentage point higher than Sacramento County’s sales tax.