The Napa Chamber of Commerce encourages members of our community to inform themselves and to participate in the upcoming election.
Napa County is a mail-in ballot county and ballots have started arriving in mailboxes for the November 5th general election.
Napa Chamber ACTION ALERT
MEASURE G: OPPOSE
Measure G is the proposed increase in local sales tax from 7.75% to 8.75% in the City of Napa.
Why does the Napa Chamber of Commerce oppose Measure G?
- The proposed local sales tax jump from 7.75% to 8.75% represents a 13% increase, which is significant especially as local businesses continue to recover from the effects of the pandemic on operations, costs, and hiring and retaining employees.
- The sales tax term is open-ended as opposed to having a sunset, or expiration date, which would have given voters the chance to either end or extend it at a date in the future. But voters will not have that chance without launching a costly campaign to repeal the sales tax increase.
- It is a general tax requiring only 50% plus one for approval versus a specific tax requiring a 2/3 majority. Without this higher threshold for approval, no guarantees or promises can be made that the funds will be directed consistently to priorities and essential services.
- The funds will be absorbed into the General Fund, and can be allocated to salaries, pensions, and other administrative and overhead expenses rather than to the identified the priorities of the broader community.
- It is difficult to recommend to our local business members to support an increase in sales tax that can have noticeable negative effects on their consumer’s demand and purchasing power. When sales taxes rise, the total cost of goods and services increases, which can discourage consumers from making purchases.
- This increase in sales tax will disproportionately impact seniors on fixed incomes and low-income families. In lower-income communities, where residents are more price-sensitive, the impact can be even more pronounced. Households may cut back on non-essential purchases, forcing these most vulnerable residents to make hard choices about their expenses.
- While we take the City’s financial needs very seriously Measure G causes us to consider the City’s needs for revenue to serve the general community and our community’s need to minimize tax burdens and maximize tax benefits.
- Rather than propose an open-ended, general sales tax increase without the necessary constraints, the City should work with local leaders and stakeholders on a potential future ballot measure that will provide dedicated funding for community priorities and services like road and sidewalk maintenance, public park improvements, and public safety.
We believe the City of Napa is focused on the right task of seeking ways to manage government expenses and grow revenue to fund priorities. The Napa Chamber knows that a strong partnership with local government is essential to the success of small local businesses and the health of a community. A future sales tax measure that meets both citizen and City needs to fund identified priorities and important City projects would be a better approach than the proposed Measure G.
What others are saying:
In their editorial urging a “No” vote, the Press Democrat states “…Measure G asks for too much, without providing adequate checks and balances…. Measure G adds a full cent to the sales tax. That’s unusual. Most local add-ons are in increments of a half-cent, a quarter-cent, even an eighth-cent…. Our other big reservation is the lack of an expiration date…There is time for city officials to write a new measure, with a smaller tax and a sunset clause, and submit to voters in 2026. Opponents of Measure G, including the Napa Chamber of Commerce, are offering to help craft a measure that can attract broader support. Say no to Measure G, and come back with a better plan in two years.” Read the full editorial here