10/01/2024
The Napa Chamber of Commerce announces its position:
Measure G: OPPOSE
After careful consideration and deliberation, the Napa Chamber of Commerce Board of Directors voted to oppose Measure G, the City’s proposed increase in local sales tax from 7.75% to 8.75% for the General Fund.
In short, central to the decision to oppose Measure G are the following concerns:
· The sales tax is open-ended as opposed to having a sunset, or expiration date, which could have enabled voters the choice to extend it or not.
· The new rate represents a 13% increase, which is significant especially as local businesses continue to recover from the effects of the pandemic on operations, costs, and hiring and retaining employees.
· It is a general tax requiring only 50% plus one for approval versus a specific tax requiring a 2/3 majority. Without this higher threshold for approval, no guarantees can be made that the funds will be directed consistently to priorities and essential services.
The Napa Chamber takes the City’s request and its financial needs very seriously as we believe a strong partnership with local government is essential to the success of small local businesses and the health of a community. On the other hand, Measure G raises questions about local impacts, budget constraint, oversight, and lack of expiration.
The proposal for the sales tax increase causes us to consider the City’s needs for revenue to serve the general community and our community’s need to minimize tax burdens and maximize tax benefits. We believe the City of Napa is focused on the right task of seeking ways to manage government expenses and grow revenue to fund priorities such as public safety, infrastructure, and social programs.
Unfortunately, Measure G doesn’t offer sufficient assurances and oversight that the additional tax revenue will be allocated to critical community needs, and no guarantees can be made that the funds will be directed consistently to priorities and essential services.
Without those assurances, oversight and guarantees, it is difficult to recommend to our local business members to endorse an increase in sales tax that can have noticeable effects on their consumer’s demand and purchasing power. Likewise, it is difficult to recommend this version of a tax to those who are disproportionately impacted by sales tax, such as seniors on fixed incomes and low-income families.
Rather than propose an open-ended, general sales tax increase without the necessary constraints and controls, the Napa Chamber has shared with the City that we would welcome a chance to work with local leaders and stakeholders on a potential future ballot measure that will provide dedicated funding for community priorities and services like road and sidewalk maintenance, public park improvements, and public safety.
We believe a future sales tax measure that meets both citizen and City needs to fund identified priorities and important City projects would be a better approach than the proposed Measure G.
