Grover Beach asking residents to approve a sales tax increase

Following in the footsteps of other city councils seeking to remedy financial shortfalls through increasing taxes, on Monday the Grover Beach City Council voted unanimously to place a 1 percent sales tax increase measures on the November ballot.

A new 1 percent sales tax increase would generate up to $1.8 million annually, according to the staff report. If approved by the council, the city will place a 1 percent sales tax increase measure on the November ballot, increasing the sales tax from 7.75 to 8.75 percent.

“The average cost per household is an estimated $16 per month with approximately 40 percent of the revenues estimated to be generated by visitors to the community,” according to the staff report.

Currently, all seven SLO County cities have sales tax rates of 7.75 percent. Each of the seven cities have adopted their own half percent sales tax in the past.

Morro Bay, Atascadero, Paso Robles and San Luis Obispo are moving forward with plans to place a 1 percent sales tax increase on the November ballot. The Pismo Beach City Council voted to place a 1 percent increase in transient occupancy tax on the November ballot. The Arroyo Grande City Council voted last week against raising sales tax at this time.

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