Monterey, Carmel and Del Rey Oaks officials can rest a little easier after the March 3 election—voters in all three approved by wide margins sales tax measures that will keep revenues flowing to pay for essential city services in coming years and keep cuts at bay.
Monterey’s Measure G is a 0.5 percent increase in the city’s current 8.75 percent sales tax, taking it to 9.25 percent. It’s expected to bring approximately $5 million into the city over the nine years, with just over 60 percent of that coming from purchases by tourists, according to an analysis by staff.
The Monterey City Council approved last fall adding the sales tax measure to the ballot after declaring a fiscal emergency. They made that determination in light of estimated budget shortfalls requiring cuts in services. City staff estimated a need to cut $2.8 million in May 2020, followed by more cuts totaling $9 million in future budget cycles.
Initial election reports at the end of the election night show voters approved Measure G with 62.5 percent, at more than 3,800 votes, to 37.5 percent, at just under 2,300 votes.
Measure C was Carmel’s bid to continue a sales tax voters approved in 2012 known as Measure D, with a little extra cushion built in. The previous measure establishing a 1 percent sales tax is set to expire in 2023. The new measure repeals Measure D and institutes a 1.5 percent increase, raising Carmel’s current rate of 8.75 percent to 9.25 percent. Measure C is set to last 20 years, bringing in an estimated $1.5 million annually.
Carmel voters approved the increase 60.8 percent to 39.1 percent, 709-457, in initial results.
Voters in the 2,000-resident town of Del Rey Oaks approved Measure F by a huge margin—nearly 72 percent to just under 30 percent. The votes behind that big win: 354-144. The city was seeking to keep indefinitely the 1 percent tax it collects on top of state and county sales taxes, for a total of 9.25 percent. The city estimates the tax brings in around $600,000 a year.
The results mean nearly every Peninsula city will have a 9.25 percent sales tax, excluding Sand City and Pacific Grove. P.G. is expected to place its own sales tax increase on the ballot in November.