Proposal would increase San Diego sales tax to 8.75%

SAN DIEGO (FOX 5/KUSI) — Mayor Todd Gloria and District 7 Councilmember Raul Campillo are pushing the “Penny for Progress” plan, which would increase the City of San Diego sales tax one percent, from 7.75% to 8.75%.

If approved by San Diego City Council, the proposal could be up to the voters on the November ballot.

“If San Diegans want to see progress, this is the most effective way I can see for us to fix the damn roads, repair our storm water systems and make the other necessary investments,” Gloria said.

Gloria said this would help in “rebuilding the city.”

“This is not just one time funding. This is money with a plan,” Campillo said.

The plan would send the additional money to the city’s general fund, with a plan from Gloria and Campillo to improve the roads, and maintain them.

“Which is the part of our budget that is most under pressure,” Raul Campillo said, referring to the city’s general fund. He said that fund is spent on public safety, firefighters, lifeguards,  sidewalks, storm drains, etc.

“We are still going to fall far short. In fact, we have $9.2 billion worth of infrastructure needs over the next number of years that far exceeds our city’s resources,” Gloria added.

Here’s a look at the current sales tax rates across the county. Currently, eight cities within San Diego County, plus the county itself have a 7.75% sales tax rate. There are nine cities above the 8% mark.

If San Diego voters approve the one percent sales tax increase, the City of San Diego would join five other cities in the county, with an 8.75% sales tax, including Chula Vista, Del Mar.

• 7.75%: Carlsbad, Coronado, Encinitas, Escondido, Lemon Grove, Poway, San Diego, San Diego County, San Marcos, Santee

• 8.25% El Cajon, Oceanside, Vista

• 8.5% La Mesa

• 8.75% Chula Vista, Del Mar, Imperial Beach, National City, Solana Beach

“Oher cities in the county of san diego where people go shop, go have fun, they have a  higher sales tax than us right now,” Campillo said. “They have that extra cent, that extra penny.”

“We’re asking voters to step up for us right now so we can invest for their families going forward in the future,” Campillo said.

The mayor claims continuing down the path they are on now will only worsen the roads in the future.

The proposal will be presented to the rules committee Wednesday. If this continues to go through, council would likely vote on the proposal and whether or not to put this on the November ballot.

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