Pacific Grove voters to decide on sales tax increase through Measure R.

On Nov. 3, Pacific Grove voters will weigh in on a small sales tax increase, worth less than a penny, through Measure R. It's a similar increase that narrowly failed in the City of Monterey in June.

The proposal for a 0.375-percent increase, which would raise P.G.'s sales tax from 9.25 percent to 9.625 percent. It's estimated it could bring in $1 million annually to the city.

The sliver of an increase, or three-eighths of a penny, became available to cities in Monterey County after it was discovered that it was available for jurisdictions to claim, with voter approval.

It stems back to a situation in 2015 when the State Legislature granted an exception to a sales tax cap at the request of the Transportation Agency for Monterey County in relation to Measure X. 

Municipal leaders and staff members thought their sales taxes had long ago reached the cap, until earlier this year when it was realized the exception existed. Monterey created Measure D for the June election, which lost just 49 percent to 51 percent. 

Pacific Grove created Measure R, and Carmel approved Measure N. All are asking for the same 0.375 percent.

Proponents of P.G.'s Measure R argue that the revenue generated by the sales tax increase is needed to help repair the city's aging infrastructure and protect its parks and coastal trails. For example, the city's storm drain system is over 50 years old and is starting to fail.

They also point out the money will remain in P.G. and will not be diverted to the County or state and that visitors will be paying a share of the sales taxes, not just residents.

The ballot argument in favor of Measure R was authored by two councilmembers identified as "residents"—Joe Amelio and Chaps Poduri—and resident Chris Thomas, who is running unopposed for the P.G. City Council in District 5, which means he will be appointed to Council in December. 

There was no submission for an argument against Measure R. No committees were formed either for or against and no campaign fundraising has been reported. 

Because it's considered a general tax, and not earmarked for specific projects, the measure only needs 50 percent plus one vote to win.