Sunday, January 25, 2015
YOLO COUNTY NEWS
99 CENTS

Local businesses react to sales tax proposal

By
From page A9 | February 09, 2014 |

A three-quarter-cent sales tax increase may not seem like a lot of money, but Ken Bradford, owner of Ken’s Bike-Ski-Board thinks it will hurt his business and hurt Davis. He’s not alone.

In a letter to City Council members on Jan. 28 Bradford said a sales tax will drive his customers away, because so-called “big ticket” items will be cheaper in other cities. But more than that, local customers will be more likely to buy from the Internet, without the benefit of the service Bradford’s shop provides customers.

Davis’ current sales tax rate sits at 8 percent. On UC Davis’ campus, the rate is 7.5 percent, according to the Board of Equalization. West Sacramento has an 8 percent sales tax rate, while Woodland has an 8.25 percent rate. Sacramento is the most expensive at 8.5 percent, while Dixon is the cheapest at 7.625 percent.

The Davis City Council is likely to place a 0.75-percent raise to the city’s sales tax on the ballot, which if passed by a simple majority of voters would make Davis the most expensive out of nearby cities.

The $5.4 million it is estimated to bring into city coffers will pay for a $5.1 million structural deficit fueled mostly by health care costs fueled by public sector retirees fueled by generous and now controversial labor contracts over years.

A Jan. 28 city staff presentation to the City Council showed Davis receiving a miniscule share of sales tax revenue per capita compared to nearby cities and similar-sized college towns like Palo Alto. Davis was compared to towns with Wal-Marts and malls, and in the case of Farifield, both.

Although the city said it passed the sales tax proposal through a focus group attached to a subcommittee, Kemble Pope, Director of the Chamber of Commerce, surveyed 165 of his members and found grave doubts about the city’s sales tax initiative.

A full 42 percent said they had no idea, on the day the City Council was to take up the idea a second time, that the city was in a fiscal crisis. And roughly 74 percent said the city should further reduce its expenditures either robustly or somewhat. Unsurprisingly, 68 percent said the city should dedicate more resources to economic development.

Which takes us back to Bradford’s mom-and-pop store, a kind of store common downtown. It separates Davis’ downtown from many other cities’ abandoned cores.

Bradford indicated big-ticket buyers would go elsewhere.

“A further three-quarter-percent increase in the local sales tax would probably send many big-ticket buyers outside Davis, just to avoid the tax,” Bradford wrote in his letter. “Suddenly that $2,000 bed or bicycle with the same retail price as online would cost the shopper $175 more in Davis … please do your best to find another revenue stream, whether that’s a parcel tax, attracting more tech business, or whatever — exacerbating the current Sales Tax inequity could be highly counterproductive.”

One area that would not be affected much would be the auto dealerships. Dan Kokotas, general manager of the Swift dealership said something people don’t realize is that a person in the state of California pays sales tax from the city they live in, not the city they buy the car in. San Franciscans who buy cars at his dealership often are surprised by that.

That doesn’t mean he’s for a sales tax increase.

“It’ll make local residents who want to buy a car less likely to buy a car because it’s more expensive,” he said.

— Reach Dave Ryan at 530-747-8057. Follow him on Twitter at @davewritesnews

Comments

comments

.

News

Four days of unusual, adventuresome music

By Jeff Hudson | From Page: A1 | Gallery

 
Bridges of Yolo County: Wear, tear … repair?

By Elizabeth Case | From Page: A1 | Gallery

 
Spanish police arrest 4 suspected members of a jihadi cell

By The Associated Press | From Page: A2

Rockets kill 30 in Ukrainian city as rebels launch offensive

By The Associated Press | From Page: A2

 
Abe ‘speechless’ after video claims IS hostage dead

By The Associated Press | From Page: A2

GOP presses state bills limiting gay rights before ruling

By The Associated Press | From Page: A2

 
Abortion opponents express renewed hope at California rally

By The Associated Press | From Page: A2

Fake schools draw federal scrutiny

By The Associated Press | From Page: A3 | Gallery

 
Winter produce available at Sutter market

By Special to The Enterprise | From Page: A3

Vote for your favorites in Readers’ Choice poll

By Enterprise staff | From Page: A3

 
Share your love (story) with us

By Enterprise staff | From Page: A3

 
Sip wines at St. James’ annual tasting

By Special to The Enterprise | From Page: A3

Speaker will share computer security tips

By Enterprise staff | From Page: A4

 
Explore at the YOLO Outdoor Expo

By Enterprise staff | From Page: A4

Pedal around Davis on weekly bike ride

By Enterprise staff | From Page: A4

 
Donations to be distributed during homeless count

By Anne Ternus-Bellamy | From Page: A4

 
Speaker will share computer security tips

By Enterprise staff | From Page: A4

Logos Books celebrates 5 years, offers language groups

By Enterprise staff | From Page: A4

 
Yolo animal shelter seeking rawhide donations

By Lauren Keene | From Page: A5

Woodland Healthcare employees take Great Kindness Challenge

By Special to The Enterprise | From Page: A5

 
At the Pond: Nest boxes give birds new homes

By Jean Jackman | From Page: A6 | Gallery

California ranks worst in nation for guidance counselors

By The Associated Press | From Page: A7

 
Words and Music Festival events

By Jeff Hudson | From Page: A12

Davis, Woodland are saving water

By Elizabeth Case | From Page: A12

 
.

Forum

Family isn’t keen on relationship

By Creators Syndicate | From Page: A8

 
 
Caring for the aging mouth

By Samer Alassaad | From Page: A8

Rick McKee cartoon

By Debbie Davis | From Page: A10

 
Big utilities’ nightmare begins to play out

By Tom Elias | From Page: A10

Mayor’s Corner: Let’s renew Davis together

By Dan Wolk | From Page: A10

 
We have the right to choose

By Letters to the Editor | From Page: A10

We don’t have to suffer

By Letters to the Editor | From Page: A10

 
City helped immensely

By Letters to the Editor | From Page: A10

When measles spreads from Disneyland, it’s a small world after all

By New York Times News Service | From Page: A11

 
From innovation parks to innovative buildings and planning

By Special to The Enterprise | From Page: A11

.

Sports

Lady Devils hold off Pacers, stay perfect in league

By Enterprise staff | From Page: B1

 
Wildcats’ inaugural kids development league exceeds expectations

By Bruce Gallaudet | From Page: B1 | Gallery

Aggies get top 2015 gymnastics score, but fall short

By Bruce Gallaudet | From Page: B1 | Gallery

 
Loud crowd sees DHS boys win

By Spencer Ault | From Page: B1 | Gallery

UCD men take two tennis matches

By Enterprise staff | From Page: B8

 
Watney in ninth at Humana Challenge

By Staff and wire reports | From Page: B8

.

Features

.

Arts

.

Business

 
UCD grad makes insurance ‘hot 100′ list

By Enterprise staff | From Page: A9

Yolo County real estate sales

By Zoe Juanitas | From Page: A9

 
Davis man focusing on cannabidiol business

By Will Bellamy | From Page: A9

Marrone Bio’s Regalia approved for new uses in Canada

By Special to The Enterprise | From Page: A9

 
.

Obituaries

.

Comics

Comics: Sunday, January 25, 2015

By Creator | From Page: B8