The Manhattan Beach City Council has placed a half-cent sales tax measure on the November 5 ballot.
Councilmembers agreed that although any new taxes were unpalatable, this sales tax
would allow the city to fund needed infrastructure improvements.
The
current sales tax is 9.5% in Manhattan Beach. An extra half-cent sales
tax would generate approximately $5 million for the city's General
Fund.
The proposed funding would be used to
maintain the city's streets, sidewalks, parks, and other infrastructure;
repair and upgrade aging community facilities; and improve parking
availability and traffic safety.
In supporting the
sales tax measure, councilmembers emphasized that the Manhattan Beach sales tax would be a
way of asserting "local control," given that the money would stay in the
city.
They also pointed to an analysis that showed
that 61.3% of the city's actual sales tax revenue in 2023 was generated
by non-residents - meaning that non-residents would presumably bear the
greatest burden of any new tax.
The council agreed to request the following preferences for the name of the measure, in order of preference: 1) MMB, 2) PMB, and 3) KFL.
Mayor Pro Tem Amy
Howorth and Councilmember Richard Montgomery have agreed to take
the lead on developing a community-led public outreach campaign
regarding the
measure.
Where Do Sales Taxes Go?
Sales
taxes within California are currently broken down as follows: 6% to the
state; 1% to local city/county operation funds; and 0.25% to county
transportation funds. Sales taxes above the 7.25% are
levied locally by local city, county, public services, and special
districts. Manhattan Beach's
current tax rate of 9.5% is tied for the
"lowest" in the county, along with 30 other cities and unincorporated
areas.
Meanwhile, a coalition of civic groups
has secured a spot on Los Angeles County's November ballot to take away
L.A. County's 1/4 cent "Measure H" sales tax for the homeless (passed in
2017) and replace it with a
1/2 cent sales tax for additional homelessness prevention and services.
That measure is supported by leaders of the California Community
Foundation, the United Way of Greater Los Angeles, and additional local
homeless services and housing nonprofits.
If
that tax and the proposed new Manhattan Beach tax are both approved, it
would bring the total Manhattan Beach sales tax to 10.25%, the statewide
sales tax limit. [One concern from councilmembers was that if the city
did not raise its own sales tax, the county would raise tax to the
limit, thereby claiming the money for the county rather than Manhattan
Beach.]
Sales tax measures on the ballot
have done relatively well in California: Since 2020, 132 local sales tax
measures in have been approved in the state, with an average passing
rate of 76.3%.
Survey Shows Support for Measure in Manhattan Beach
At
its July 16 meeting, Manhattan Beach City Council heard a report from polling
firm True North Research Inc., a firm that has carried out multiple
surveys in the city, on the feasibility of a sales tax increase on the
November ballot. The firm surveyed a sample size of 409 likely Manhattan
Beach voters in June 2024.
Given residents' overall positive
feelings about the city, the firm found "solid natural support" (64%)
for establishing a one-half cent sales tax to provide funding for city
services in Manhattan Beach. The firm's report said that such a measure
would be "feasible for the November 2024 ballot provided that it focuses
on the projects and services that voters identify as their priorities
and is accompanied by robust community/opinion leader engagement,
education, and communication."
(Infrastructure projects include this construction to upgrade and replace the railings on the Manhattan Beach Pier.) Although
the City Council would have the discretion to decide how to spend the
sales tax revenues, the survey results indicated that voters are
primarily interested in using the funding to fix potholes and maintain
city streets (88% strongly or somewhat favor), keep local streets,
sidewalks, infrastructure, and parks safe, clean, and well-maintained
(87%), improve e-bike traffic enforcement and safety (80%), make
improvements to roads, intersections, bike lanes, and signals to improve
traffic safety and reduce congestion (79%), and expand sidewalks
downtown to allow outdoor dining and improved access (73%).
However,
the survey results are meant to be a guide; not a promise of a certain
outcome, noted True North survey author Timothy McLarney. “As
promising as these results are, it's important to remember that these
results are a snapshot in time; they’re not a crystal ball," he said.
