That morning coffee and pastry will probably be a couple extra cents more Monday as new sales tax rates, approved by voters both countywide and in Half Moon Bay in November, go into effect.
Voters passed two separate half-cent sales taxes last year, both of which take effect April 1. Nearly two-thirds of San Mateo County voters approved Measure A, a half-cent sales tax measure aimed at generating millions for a wide range of needs including seismic upgrades at Daly City-based private Seton Medical Center which heavily bankrolled its campaign. Measure J, a half-cent sales tax that will raise about $870,000 annually over the next three years for Half Moon Bay, also passed.
This will be the second spike in sales tax this year. On Jan. 1, a quarter-cent hike went into effect as part of Gov. Jerry Brown's Proposition 30 tax package to support education. On Monday, two others go into effect.
The measure increases the sales tax in San Mateo County to 9 percent from 8.5 percent except in the cities of Half Moon Bay and San Mateo. San Mateo's sales tax will rise to 9.25 percent from the previous rate of 8.75 percent due to a previous voter-approved measure. Half Moon Bay residents will now have a 9.5 percent tax rate due to Measure J.
"As a small business owner, I worry about everything that might deter our customers from shopping at our store, whether it is traffic, weather or taxes. I understand the arguments for supporting critical local services and I hope that our customers will continue to support our local business community," said Eric Hassett, owner of the Ocean Shore Ace Hardware.
Despite having the highest tax rate in San Mateo County, Charise McHugh, Half Moon Bay Coastside Chamber of Commerce and Visitors' Bureau president, said the high rate won't keep people from the coastside.
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"We're unique," she said of the coastside area.
Of course there is a possibility a higher tax rate will result in less sales but that's not a major concern, McHugh said. Those who live in Half Moon Bay will still shop locally because it's cheaper than the gas required to go over the hill. And, those visiting will be willing to pay because of the fabulous location they're visiting, she said.
Paying a bit more is embraced by locals also because it will help the financial situation for the city, McHugh said.
All the new tax rates have end dates. Proposition 30 is set to end in 2016. The San Mateo County measure has a 10-year life. Half Moon Bay's higher tax rate will last for three years.
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