Cities consider tax increases
PALMDALE — The Palmdale City Council will consider adding a proposed three-quarter cent sales tax increase ballot measure on the Nov. 3 ballot to generate an estimated $12 million annual revenue to maintain essential city services.
Palmdale has seen its sales tax revenue drop by approximately 10% as a result of the ongoing COVID-19 pandemic. The projected lost revenue for the 2019-20 Fiscal Year is $2.5 million and $2 million for the current fiscal year when compared to pre-COVID-19 projections for Fiscal 2019-20.
“Economic experts are having difficulties predicting the recovery rate and the impacts to property taxes due to rental and mortgage deferrals,” according to a staff report. “The General Fund Five-Year Projection illustrates the City’s need to immediately address upcoming shortfalls
incrementally otherwise draconian measures to cut programs will be required.”
The current sales tax in Los Angeles County is 9.5%. Palmdale’s proposed sales tax, if approved by local voters, would increase the total sales tax to 10.25%. The Lancaster City Council will consider a similar proposal today, as well.
The estimated $12 million in revenue generated by the proposed sales tax increase, if approved by local voters this November, would help protect Palmdale’s longterm financial stability and maintain essential services, which include repairing streets/potholes, addressing homelessness, maintaining 911 emergency response, keeping public areas safe/ clean for all, retaining local businesses, protecting local water sources and maintaining veterans, seniors, mental health and community programs, according to the proposed ballot language.
The proposed sales tax increase would not expire until ended by voters. In addition, it would require citizen oversight.
The City Council will meet at 7 p.m., today. Council members may choose to participate via conference call as a result of the COVID-19 emergency. Residents can view the meeting on Spectrum Channel 27 or the live webcast at www.cityofpalmdale.org
Public comments can be submitted through eComments on the city’s website at https://cityofpalmdale.org/310/ City-Council-Meetings