Friday, November 21, 2014
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

UC regents approve 5% tuition increases

By The Associated Press | From Page: A1 | Gallery

 
 
California unemployment steady at 7.3 percent

By The Associated Press | From Page: A2

 
 
A new home for the holidays?

By Enterprise staff | From Page: A2 | Gallery

 
Sierra Club calendars on sale Saturday

By Enterprise staff | From Page: A3

Explorit: Lecture illuminates state water bond

By Lisa Justice | From Page: A3

 
Apply now to take Master Gardener training

By Enterprise staff | From Page: A3

Yolobus will reroute Saturday morning for Turkey Trot

By Enterprise staff | From Page: A3

 
Help feed the hungry at Saturday’s food drive

By Enterprise staff | From Page: A3

Volunteers sought to advocate for kids

By Enterprise staff | From Page: A4

 
Village Homes gets crafty

By Enterprise staff | From Page: A4 | Gallery

 
.

Forum

Nowhere to go, nothing to do

By Creators Syndicate | From Page: B5

 
Davis voices concerns over new oil-by-rail proposal

By Special to The Enterprise | From Page: A10

Cheers and Jeers: Katehi front and center

By Our View | From Page: A10

 
Tom Meyer cartoon

By Debbie Davis | From Page: A10

Council misses an opportunity

By Letters to the Editor | From Page: A10

 
Together we can do so much

By Letters to the Editor | From Page: A10

Have you read this book?

By Letters to the Editor | From Page: A10

 
We DO have a water shortage

By Letters to the Editor | From Page: A10

.

Sports

UCD men get to 2-0

By Enterprise staff | From Page: B1 | Gallery

 
Silveria has been there through thick and thin

By Bruce Gallaudet | From Page: B1

 
Whose seniors will go out in style at Causeway Classic No. 61?

By Bruce Gallaudet | From Page: B1 | Gallery

LBSU takes down UCD in matchup of Big West’s best

By Thomas Oide | From Page: B1 | Gallery

 
Wire sports briefs: Kings cruise past Chicago

By The Associated Press | From Page: B3

 
Raiders beat K.C. to snap a 16-game skid

By The Associated Press | From Page: B3 | Gallery

Aggie women start 4-game homestand Saturday at 11 a.m.

By Enterprise staff | From Page: B8

 
.

Features

.

Arts

 
The Purple Ones to play tribute to Prince

By Enterprise staff | From Page: A11

‘The Hunger Games: Mockingjay, Part 1′ fails to catch fire

By Derrick Bang | From Page: A11 | Gallery

 
Wealth of Nations show is Saturday

By Enterprise staff | From Page: A11

Davis Feminist Film Festival accepting submissions

By Enterprise staff | From Page: A11

 
Come ‘Home for the Holidays’ and benefit school arts

By Special to The Enterprise | From Page: A11

Founding pastor of UCC’s now-famous painting on display

By Enterprise staff | From Page: A12 | Gallery

 
.

Business

Automakers debut key models at L.A. Auto Show

By The Associated Press | From Page: A7 | Gallery

 
.

Obituaries

.

Comics

Comics: Friday, November 21, 2014

By Creator | From Page: A9

 
.

Real Estate Review

Featured Listing

By Special to The Enterprise | From Page: RER1

Professional Services Directory

By Special to The Enterprise | From Page: RER2

Lyon Real Estate

By Special to The Enterprise | From Page: RER3

RE/Max Gold

By Special to The Enterprise | From Page: RER4

Kim Eichorn

By Special to The Enterprise | From Page: RER5

Joe Kaplan

By Special to The Enterprise | From Page: RER6

Melrina A Maggiora

By Special to The Enterprise | From Page: RER6

Marcelo Campos

By Special to The Enterprise | From Page: RER7

Lennar Homes

By Special to The Enterprise | From Page: RER7

Tracy Harris

By Special to The Enterprise | From Page: RER8

Yolo FCU

By Special to The Enterprise | From Page: RER8

Team Traverso

By Special to The Enterprise | From Page: RER8

Travis Credit Union

By Special to The Enterprise | From Page: RER9

Coldwell Banker

By Special to The Enterprise | From Page: RER10

Ciana Wallace

By Special to The Enterprise | From Page: RER12

Diane Lardelli

By Special to The Enterprise | From Page: RER12

Jamie Madison

By Special to The Enterprise | From Page: RER12

Malek Baroody

By Special to The Enterprise | From Page: RER13

Wells Fargo Home Mortgage

By Special to The Enterprise | From Page: RER13

Julie Partain

By Special to The Enterprise | From Page: RER14

Coldwell Banker

By Special to The Enterprise | From Page: RER15

Karen Waggoner

By Special to The Enterprise | From Page: RER17

Jamie Madison & Associates

By Special to The Enterprise | From Page: RER17

Cynthia Gerber

By Special to The Enterprise | From Page: RER17

Dana Hawkins & Caitlin McCalla

By Special to The Enterprise | From Page: RER18

Chris Snow

By Special to The Enterprise | From Page: RER18

Open House Map

By Special to The Enterprise | From Page: RER19

F1rst Street Real Estate

By Special to The Enterprise | From Page: RER20