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Ka-ching! City of Santa Barbara asking voters to help with budget crisis by approving sales tax hike

The City of Santa Barbara is asking voters to approve a half-cent sales tax increase to help with its struggling finances.
Clay Banks
/
Unsplash
The City of Santa Barbara is asking voters to approved a half-cent sales tax increase to help with its struggling finances.

Proposal calls for half-cent hike, taking sales tax from 8.75% to 9.25%. Tax would raise an estimated $15.6 million annually.

The City of Santa Barbara is asking for the community’s help as it struggles to deal with the continuing financial impacts of the pandemic.

The city is asking voters to approve a half-cent sales tax hike in November. The proposal calls for taking the current tax from 8.75% to 9.25%.

It would raise an estimated $15.6 million annually.

The city has been hard hit by inflation, plus major drops in sales tax and transient occupancy tax revenue due to the pandemic.

Despite spending cuts, the city has been forced to dip into its reserves and could have to continue to do so for the next three years unless the hike is approved. The city faced a $7 million budget shortfall for the upcoming fiscal year. It approved a $577 million budget this week.

Lance Orozco has been News Director of KCLU since 2001, providing award-winning coverage of some of the biggest news events in the region, including the Thomas and Woolsey brush fires, the deadly Montecito debris flow, the Borderline Bar and Grill attack, and Ronald Reagan's funeral.