San Carlos is considering placing a sales tax on next November’s ballot to help fund its downtown upgrades and projected developments in coming years.
The city is one of the few in the region that doesn’t already have a sales tax, and the potential half-cent tax could generate $6 million annually.
“We’re one of the only cities that doesn’t have a local sales tax and it’s time for us to catch up,” Mayor Sara McDowell said. “Our community wants a lot of things … and we do need to be prepared and think ahead.”
Consultants TeamCivX and True North Research conducted a voter survey in September to gauge resident potential interest in approving a sales tax or bond measure.
Results from surveying 699 respondents show that approximately 67% said they would vote in favor of a sales tax — a far higher amount than the percentage in favor of a bond measure.
Consultant Dr. Timothy McLarney said while the results show favorability for a sales tax far above the threshold it needs to pass, which is a simple majority, councilmembers should understand the survey isn’t a guaranteed indication of how an election would go.
“A poll like this is a snapshot in time, it is not a crystal ball,” consultant Dr. Timothy McLarney said.
Although a bond measure would provide more money up front, the funds are more restrictive than tax funds and limited to capital improvements. Sales tax can be used for a variety of items throughout the city’s budget, including maintaining those capital improvement projects.
The San Carlos City Council approved moving forward with working toward placing a sales tax on the ballot, which will include deciding whether the tax should be a half-cent sales tax or higher.
Next steps will include raising awareness of the city’s infrastructure and funding needs.
In the next nine years, the city is prepared to dip into its reserves, Rebecca Mendenhall, the city’s Administrative Services director, said.
The deadline to qualify for the November 2026 ballot is Aug. 7, 2026.
(65) 344-5200 ext. 106
Daily Journal staff
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Mike Caggiano said:
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(1) comment
Well of course they are. I’m betting the tax will be on the ballot, not just a consideration. San Carlos needs money to pay for ever-increasing salaries, pensions, and benefits. Sharp-minded San Carlos residents can correct me but wasn’t it just last year that San Carlos gave out generous raises to unions and before that didn’t San Carlos give out bonuses because at the time, San Carlos had a surplus in the budget? It is apparent San Carlos is looking for more of your money to pay for raises, pensions, and benefits. Vote NO on any proposed tax measures. If you have a change of mind, don’t worry, I’m sure San Carlos will float more tax proposals in the near and far future. But remember, you’re money is essentially being transferred to union workers.
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