Here are the top 11 reasons to vote “no” on the Solvang sales tax increase.
1. It hurts the poorest and elderly the most. The reason is that the poorest have a higher proportion of their income spent on products that are taxed just to get by. Those in favor of this tax do not care about the elderly, widows, widowers, and those on very low fixed income in Solvang.
2. The title is deceptive and misleading. The ballot reads a “1 cent” increase in sales tax in the ballot language. Let’s clarify: It is a full one percent (1%) increase from 7.75% to 8.75%. This is a 13% increase in sales tax.
3. There is no need for a 13% increase in sales tax with inflation. Sales tax revenues increase as prices increase. You already pay more to the government with inflation. With 10% inflation, the government’s sales tax income increases by 10%.
4. Sales tax revenues were at record levels in 2021. According to the recent State of the City presentation by the city manager, sales tax and bed tax revenues broke all the highest revenue records last year.
5. Passage may decrease sales tax revenue. People shop with their dollars so many will go to Buellton or Santa Ynez for shopping instead of their hometown to save sales tax expenses resulting in lower sales tax revenue for Solvang.
6. This tax increase puts Solvang at a competitive disadvantage to other communities. Business is competitive enough on an equal sales tax footing, but to vote to handicap yourselves with a higher sales tax makes no sense.
7. The city says it is for essential services. When did our 7.75% only pay for non-essential services? We taxpayers did not approve our tax money for non-essential services. Let’s start with essential services first before passing more taxes to pay other non-essential services.
8. Saying groceries will not be taxed by this measure is misleading. Groceries are already exempt from sales tax in California already. This is another deceptive argument to try to fool you, the smart voter.
9. This is not a “tourist only” tax. There is no exemption for locals from the tax.
Proponents of this tax increase say that the tourist pays most of the sales tax so they should pay their fair share. If you shop in Solvang, you will pay it whether you are a tourist or not. Some of the largest sales taxpayers are non-tourist businesses such as building supplies, hardware stores, grocery stores, and drug stores. This sales tax increase hurts contractors, local property owners, residents, employers, and employees.
10. The city is increasing your water and sewer rates dramatically. This alone is enough to vote no on a sales tax increase. City revenue will increase dramatically with the new rates.
11. It is never enough. Every tax increase never generates enough for the government. It is best to vote “no” to send a message to the city to live within its budget just like the rest of us have to do.
Solvang’s budget is approximately $18 million per year with a population of approximately 6,200. Smart voters in Solvang believe the city can operate effectively at this revenue level without this tax increase.
Allan Jones
Solvang
