Merced voters decide Tuesday on a 1% sales tax increase

City of Merced voters will decide Tuesday whether to raise the local sales tax by 1%, a measure that city leaders say would protect core services and that opponents call an unfair burden on residents who are already stretched.

Measure B would take the city’s sales tax rate from 8.25% to 9.25%, the Merced Sun-Star reported. That’s one more cent on every taxable dollar, or $1 on a $100 purchase. The city estimates it would bring in about $18 million a year. Opponents have put the figure closer to $16 million, according to the Sun-Star.

The measure needs a simple majority of votes cast to pass, and only voters in the city of Merced will see it on their ballots. The City Council voted 6-1 on Aug. 3 to place it on the ballot, with Councilmember Fue Xiong casting the only vote against it.

What it would pay for

Measure B is a general tax, so its money is not legally restricted to any program. The city lists police and 911 response, fire and emergency medical service, homelessness, street repairs, parks and youth programs among the possible uses, but those are not commitments. The City Council would decide how to spend the money through its annual budget.

The city says the measure includes citizen oversight, public disclosure of spending and independent audits.

The tax would stay in effect until Merced voters end it. Under California law, most groceries and prescription medications are not subject to sales tax.

What supporters say

The ballot argument in favor was signed by Mayor Matthew Serratto, the firefighters’ union president, the police association president and two local business owners. They argue the tax is needed because a federal grant that pays for 24 firefighters runs out in March 2027, the Sun-Star reported. Without the measure, they warn, the city would have to cut nearly half of its firefighter-paramedics.

Serratto told the Sun-Star the tax would cost about $15 a month per person, and that Merced’s sales tax rate is below the state average. Councilmember Mike Harris, who described himself as a fiscal conservative, also supports the measure.

What opponents say

Xiong and other residents signed the argument against the measure. They call it a regressive tax that would fall hardest on low-income residents already dealing with higher costs for groceries, utilities and gas, the Sun-Star reported.

They also point to Measure C, the city’s existing half-cent public safety sales tax, which they say already sends most of its money to police and fire, and argue the city should not be asking for more for the same departments.

How to read it yourself

The full text, an impartial analysis and both sides’ arguments are on the county’s election page. Our voter guide explains how to vote.

Sources: City of Merced ballot measure page, Merced County Elections, City Council agenda item, Aug. 3, The Merced FOCUS, Aug. 5, Merced Sun-Star, Sept. 24