SAN DIEGO (KGTV) – The sales tax in the City of San Diego could soon be going up.
At a Wednesday morning meeting, the City Council’s Rules Committee voted unanimously to move a proposal forward that would implement a 1% sales tax increase -- raising the current sales tax from 7.75% to 8.75%.
According to Mayor Todd Gloria's office, the increase would generate an extra $374 million annually.
That projected revenue amount would be 19.9% of the city's General Fund, and it would go towards upgrading streets, roads, storm drains, and other parts of the city's infrastructure.
Revenue generated from the sales tax would also go towards police officers, firefights, and first responders, as well as public parks, libraries, and more.
Raising the sales tax to 8.75% would match the sales tax rates of cities like Chula Vista, National City, Del Mar, Solana Beach, and Imperial Beach.
Right now, 1% of the 7.75% sales tax goes towards the city's sales tax revenue; adding the proposed 1% would double its revenue.
During public comment, there were some San Diego residents who voiced support for the measure. There were others who opposed it, with more than one stating there is already a San Diego County sales tax increase on the ballot for November.
One citizen asked if the Transit Occupancy Tax, the tax on Airbnb and hotel sales, would be increased by 1% instead.
Another citizen proposed that a “sunset clause” be added to the measure giving the city a chance to prove that it will spend the money wisely.
However, Councilmember Raul Campillo addressed that request in his remarks, stating it would cost more money in the long haul to implement such a clause to the measure.
Ahead of a next meeting, the proposal will now be analyzed for the fiscal impacts it will have, and the city will need to draft an outline of what the measure would look like to voters on the ballot come November.
