PRESS RELEASE
Half Percent Sales Tax Rollback in El Cajon
EL CAJON, Calif. – April 15, 2015 – The ‘Rollback Tax Event’, hosted by the East County Chamber of Commerce, the City of El Cajon, Parkway Plaza, and Valley of Cars, commemorated the one-half percent sales tax decrease in the City of El Cajon. With the sun setting of Proposition O, the sales tax decreased from 9.0% to 8.5% in El Cajon. Taxpayers will save approximately $8.6 million a year, an average of $245 per household.
“The City of El Cajon accomplished everything it promised the taxpayers when they approved the tax in 2004,” said El Cajon Mayor Bill Wells. “The sales tax revenue generated by Proposition O allowed the City to build much-needed public safety facilities, improve a handful more, and lay the groundwork for a brand new animal shelter. It’s now time to put money back in the hands of taxpayers.”
This month, El Cajon became the only city in California to rollback its sales tax, according to statistics from the Board of Equalization. By comparison, 43 other cities and counties across the state elected to renew or increase their sales tax.
“This is an important step for El Cajon businesses owners, residents and visitors,” said Eric Lund, general manager of the East County Chamber of Commerce. “The sales tax decrease in El Cajon means business owners are competitive with other cities in San Diego County, and consumers are keeping more money in their pockets. For example, when El Cajon residents visit the Valley of Cars, they’ll pay less for a car than they did before.”
In November of 2004, the citizens of El Cajon passed Proposition O, agreeing to pay a one-half percent sales tax for 10 years to raise funds specifically for the improvement of El Cajon’s public safety and emergency response facilities. Over the past 10 years, the city built a brand new public safety facility and a new fire station. The city also made significant upgrades to three remaining fire stations in the city and has a brand new animal shelter planned to be built in 2016 with the remaining funds.
“The sunset of this tax is a time to celebrate for everyone,” said Mayor Wells. “The City of El Cajon is a better, safer place today than it was 10 years ago. Much has been accomplished and it wouldn’t have been possible without the support from the El Cajon citizens, the business community, and City Council.”
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Comments 9
Congratulations to the City of El Cajon, but I do not remember Republicans using the label “reduction in sales tax” when the State of California sunsetted a 1% tax increase in 2011. I guess it only counts as a tax reduction if the Chief Executive is a Republican.
HQ, I think you’ll find the legislature’s decision not to try to extend the sales tax was simply political reality. That temporary 1% sales tax increase measure was passed with a couple turncoat GOP votes (notably Maldonado), but by 2011 the GOP had pulled together and would not vote for an extension of the tax with the needed 2/3 legislative vote. The only alternative for tax proponents was to go the ballot for an extension of the tax, and the Dems wisely concluded that such an option would not go well with the electorate.
Besides, the Dems then began working on Prop 30 — the massive retroactive 2012 29% income tax increase on millionaires (defined as anyone making more than $250K) — “soak the rich” generally plays well in CA. And — oh yeah, Prop 30 raised the sales tax again a quarter of a percent.
I don’t get all misty-eyed when viewing this tax reduction. While certainly a good idea, it should be noted that, when passed, the earlier 1% sales tax increase made El Cajon one of the highest taxed local jurisdictions in the state. Locally it was tied with Democrat stronghold National City at the 9% total. Apparently El Cajon politicians decided a tax increase was preferably to more immediate and deep fiscal reforms — and could not manage their budget the way the rest of the San Diego County cities have managed.
It’s hard to say how much of a negative effect this high tax had on the El Cajon economy, but it’s less than heartening to drive down their touted main street and seeing all the empty business locations — many businesses there have closed, or are struggling to stay afloat.
Personally I would never buy anything in El Cajon when lower tax jurisdictions could be found in any direction in the county. The fact that CA is now the same as most other regional cities is good, but hardly laudatory.
BTW, the El Cajon Super-Walmart is not really IN El Cajon. It’s about 2 blocks outside the city limits. Hence its sales tax did not rise. I would occasionally stop there (one block off I-8) to shop when driving through the area (we have no Super-Walmarts in San Diego). The lower sales tax always gave me a rush! But then, I’m easily entertained.
Oh, here’s the OTHER reason the El Cajon “tax cut” is not impressive. It’s STILL 8.5% — a half-percent higher than almost all the other cities in the county, plus the unincorporated area of the county.
You see, this highly touted sale tax cut is only HALF their total sales tax increases. Currently National City is 9%, La Mesa is 8.75%, Vista is 8.5% and the of the cities and county are at 8%. I still won’t shop in El Cajon.
Richard, I love your championing of limited government and I hesitate to counter your critique but will offer my two cents.
While El Cajon may still have a sales tax that is above half the cities in the county let’s not lose sight of what has happened here. How often do we see a city council in California or Mayor move in this direction?
Do we critique them for a proper response?
Did the El Cajon council make a mistake in 2004 by not trimming other areas first? Perhaps, but that was not Mayor Wells’ doing. We both know Wells is correct on his economic theory, lower sales tax will increase tax revenue in El Cajon. Let’s encourage him to go another half a percent.
Point taken, Eric. But I don’t thank someone for hitting me less hard on the head with a hammer than before, but still harder than almost anyone else hammers me.
Instead I extol them to STOP HAMMERING! Or at least try to hammer me no harder than everyone else does.
Hmmmmm . . . . “Hammering” analogy overplayed here, but you get my drift.
Moreover, their PR above doesn’t mention the fact that EC still charges more sales tax than almost all other cities in the region. Clearly that wasn’t an unintentional omission, as they were trying to take more credit for fiscal frugality than they were due.
As the Mayor shared on the radio (Mike Slater) they got this done because they have five Republicans. Now we watch to see what five Republicans can do. Are they content with being average or will they lead and set an example?
Eric, it’s quite likely that the two sales tax increases in El Cajon were both approved and hyped by a Republican majority on the city council. I’ll let others do the research.
The same is probably true for the La Mesa and Vista sales tax increases. Until recently, local Republican officeholders in much of Southern California were almost as bad as Democrats when it came to city and school district tax increases. Unions called the tune to which they danced.
That being said, today’s GOP local office holders are showing considerably more fiscal grit than in times past. The reforms in Carlsbad and San Diego perhaps have given Republicans examples that local pols CAN represent the taxpayers rather than the city labor unions.
Let me see if I understand this: in 2004, the voters of El Cajon approved a 1/2 cent sales tax increase with the provision that it expire (sunset) in ten years with the sales tax reverting back to its previous amount. Fast forward the ten years and the tax expired and even though their was no legislative action to make this happen, the Mayor of El Cajon is taking credit for a sales tax decrease. Do I have that correct?
If I have a one day, one dollar increase in price at my store, can I take credit for a “dollar off all items sale” the next day?