Measure R: City of Half Moon Bay Sales Tax Measure

Background:

The City of Half Moon Bay provides a variety of general municipal services, including public safety and emergency 911 medical response (via contract with the San Mateo County Sheriff’s Department); senior and library services; parks maintenance; and other general maintenance and services. In recent years, the City’s ability to maintain these services has become more challenging due to operating costs rising at a faster pace than revenues. Half Moon Bay’s Measure R is a potential option to raise additional revenue to support the City’s General Fund.

Measure R Defined:

Half Moon Bay’s Measure R seeks voter approval to authorize a half-cent (0.5%) sales tax to maintain city services. City staff estimates that if Measure R is approved, it will generate approximately $2 million annually to support Half Moon Bay’s General Fund.

A “YES” vote authorizes collection of the tax; a “NO” vote rejects the authorization.

Measure R Ballot Question:

To help the City of Half Moon Bay maintain financial stability and essential services, such as maintaining 911 emergency response times, sheriff patrols, and disaster/emergency preparedness; keeping public places safe, healthy, and clean; reducing traffic congestion; and maintaining youth and recreation programs, shall a measure establishing a half-cent (0.5%) sales tax, providing approximately $2,000,000 annually for general revenue purposes until ended by voters, with annual audits/locally controlled funding, be adopted?

Half Moon Bay Measure R Summary

If approved by voters, the Measure will provide additional funding that could be used to:

Maintain 911 emergency response services
Keep public areas safe and clean
Maintain streets and roads
Maintain libraries, parks, and recreation programs

And provide any other services and infrastructure maintained by the General Fund.

How Much Will It Cost Residents and Others Shopping in Half Moon Bay?

The cost to an individual depends on the amount of qualified goods or services purchased. If Measure R is adopted by voters, a taxable purchase of $20 in the City of Half Moon Bay would cost an additional $0.10, or ten cents.

The proposed tax increase would be collected in addition to existing sales tax and would be subject to all the same tax exemptions, such as most groceries, prescription medicine, and many medical supplies, rent, utilities, diapers, and feminine hygiene products. For a complete list of sales and use tax exemptions, please visit the California Tax Service Center.

Will Visitors Pay the Tax?

Up to 40% of sales tax dollars collected in Half Moon Bay comes from tourists and visitors from surrounding areas. This City sales tax would be added to the current sales tax, and it would apply to both visitors and residents.

Accountability Provisions:

All funds generated by Measure R will remain under the control of the City of Half Moon Bay to provide local general services.
By law, the State cannot take this funding away.
The City is required to publicly report on the expenditure of revenues.

What if Half Moon Bay Measure R doesn’t pass?

If Half Moon Bay Measure R is not approved, the General Fund will not receive the sales tax revenues identified in the Measure. The City Council will then have to decide, as part of the budgeting process, which City programs and services will be funded with existing revenues, which City programs and services will have to be reduced, and whether other revenues are available or can be generated.

Was the Community Consulted prior to the Measure Being Placed on the Ballot?

The City of Half Moon Bay hosted a series of Community Meetings and conducted a Community Priorities Survey. At these meetings, staff provided an overview of the City’s services, budget outlook, and potential options for revenue enhancement.

The City also distributed a citywide informational mailer to educate the public about the specific challenges facing the City and to invite the public to our Community Town Hall events.