Half Moon Bay is taking its first steps to implement Measure R, a raise in its sales tax to 9.875% that voters approved during the November election.
The tax will go into effect for shoppers on April 1, although the revenue will not be available to the city until June.
The additional revenue to support the city’s general fund — approximately $2 million in additional funds per year — and was brought to voters in large part to ask for their help in mitigating an ongoing structural deficit of around $4 million.
It will fund essential services, including 911 response times, sheriff’s patrols, disaster and emergency preparedness, maintaining youth recreation services and addressing traffic congestion, among other programs.
The city will need to send its preparatory agreement, as well as ongoing administrative costs, to the California Department of Tax and Fee Administration, City Clerk Jessica Blair said.
That includes one-time setup costs of up to $175,000, as well as administrative costs of $14,000 to $15,000 per year.
Businesses will be notified by the CDTFA, Blair said, although the city is also working to prepare both residents and businesses for the increase.
“The tax administration will notify our businesses, however, we are working with our economic and community vitality division, as well as the chamber of commerce, to do our own outreach to businesses prior to that notification, and also making sure we notify the public,” Blair said.
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