Web Update
PG sales tax hike heads for June ballot
Thursday, March 6, 2008
The Pacific Grove City Council decided March 5 to place a 1-percent sales tax increase on the June 3 ballot.
City officials, who have been struggling to bridge the city’s budget gap and build financial reserves, estimate that raising the sales tax from 7.25 percent to 8.25 percent would generate $1.2 million to $1.4 million annually. Seaside voters approved an identical sales tax increase in February.
PG voters rejected a half-percent sales tax increase last November, but City Manager Jim Colangelo suggests public education and citizen support could reverse the outcome this time around. The PG Chamber of Commerce supports the tax, according to chamber president Moe Ammar.
The council voted against placing a second measure, which would lift the business license tax cap, on the June ballot. Councilmembers did not rule out placing the measure on the November ballot.
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