Petaluma Mulls Sales Tax Increase Despite Increasing Revenues
The Sonoma County city of Petaluma is considering a 1% sales tax increase. They're proposing a general tax because it could pass with just over 50% of the vote. A tax used for more specific purposes would require a 2/3 majority.
Why the need for a tax increase when their general fund has actually been growing due to sales from new businesses? From Petaluma 360:
"The city’s $39.5 million budget for 2014-15 shows a general fund growth of about $2.7 million, thanks to increasing sales tax revenue from a slew of major retailers opening. But Petaluma still faces a major general fund deficit by 2017 — mostly due to rising employee pension and health care costs."
Coming to your town soon? Nope. It's already happening in Eureka and any number of other cities and counties across the state.