Encinitas Advocate News |

Encinitas council to consider sales tax ballot measure

The Encinitas City Council is scheduled to decide Wednesday, May 22, whether to ask the city’s voters to approve a 1 percent sales tax increase in November.

“Sales tax in Encinitas is currently 7.75 percent, the lowest rate possible in the county of San Diego,” a staff report produced for the May 22 council meeting states.

Out of that amount, 6 percent goes to the state, .5 percent pays for regional transportation projects in San Diego County, .25 percent goes to county government generally, and the remaining 1 percent goes to the city of Encinitas.

If the city’s voters approve the proposed 1 percent increase, the city’s total tax rate would rise to 8.75 percent, and Encinitas would receive 2 percent of that. The new sales tax rate would match what’s charged in Chula Vista, Del Mar, Imperial Beach, National City and Solana Beach, the staff report notes.

Carlsbad charges the same 7.75 percent rate that Encinitas has now, the state’s Department of Tax and Fee Administration web site states.

La Mesa charges 8.5 percent, while El Cajon, Oceanside and Vista all charge 8.25 percent.

“The cities of San Marcos, Oceanside, Santee, Lemon Grove, El Cajon, La Mesa and San Diego are also exploring sales tax increase ballot measures for November 2024,” the Encinitas city staff report states.

The proposed Encinitas tax increase, which is forecasted to raise about $15.4 million a year, could fund improvements to everything from sewer lines to sidewalks, city officials have said. Reducing flooding issues and preventing sewer line pipe breaks have been frequently mentioned as high-priority projects.

It will require a simple majority vote to pass.

“If approved, the 1 cent sales tax would be in effect for a period of 10 years, and would not apply to items like groceries, medication or feminine hygiene products,” the city staff report produced for this week’s council meeting states.

During the meeting, which begins at 6 p.m. at City Hall on Vulcan Avenue, the council will vote on whether to place the item on the Nov. 5 ballot, then decide whether to take an official position on it. If the council votes to take an official stance, then council members also will select who will write the ballot argument. That supportive statement will be included in the ballot materials.

The City Clerk’s office estimates the cost of placing the measure on the Nov. 5 ballot will be $200,000. The money already has been included in the coming fiscal year’s proposed budget, which the council is scheduled to approve next month, the staff report states.