Supes put off ‘confusing’ tax hike plans

County supervisors on Tuesday could not agree on a plan to place a countywide sales tax on the ballot in 2016 — citing potential confusion about the tax-sharing implications — and instead will plan a joint meeting with the Hollister and San Juan Bautista city councils before asking voters to support any tax hikes.

Supervisors considered moving forward with a 1 percent tax, with the hope that the city of Hollister would repeal its current 1 percent tax that expires in April 2018 in order to keep tax rates balanced throughout the county. They also noted that the Council of Governments could place a transportation-specific tax increase on the ballot later next year. Board Chair Margie Barrios said the idea of special tax for transportation “has always been kicked around and has always come back to a general tax rather than a special tax,” since a general tax only requires a simple majority vote, rather than a two-thirds super majority.

County Management Analyst Sara Fontanos presented a report to the board that discussed various tax options that have been discussed by Hollister and county officials, but some supervisors agreed with Marty Richman’s public comments that “you are never going to explain this to the electorate.” He also expressed doubt that the city of Hollister could simply repeal a tax that had not yet reached its sunset — or expiration date. County Counsel Matt Granger confirmed to the board that the city’s sales tax, which was approved by initiative, would have to be repealed by initiative as well.

Barrios said, “I believe our voters are smart (and) if given the information correctly and timely, they will understand it. If we don’t go for a countywide 1 percent (tax), the city is going to try to extend their 1 percent in 2016. It’s an opportunity for all of us to share in passing this 1 percent sales tax. We will get the help of the city.”

San Benito County’s current tax rate is 7.5 percent; San Juan Bautista’s rate is 8.25 percent; and the city of Hollister’s rate is 8.5 percent.

Supervisor Anthony Botelho said he is “fed up with taxes” and that the county needs to have a plan for what it would do with extra tax revenue. “I don’t think we should make it that much more easier for us to get a potful of money,” he said. “I don’t know how to explain that to voters in my district.” He said he preferred that any tax increase be targeted for transportation needs. “That’s where we need the money; everything else we’ll have to work within our means. I just have a lot of concerns about 1 percent. That would be a tall order to be passed in areas of my district, especially when they don’t see the benefit of that.” Botelho represents the county’s west side, including San Juan Bautista.

Supervisor Robert Rivas, who was the campaign manager who helped the city of Hollister pass a 1 percent sales tax in 2007, said he is disappointed how that revenue has been used. “I honestly believed we were going to use that money to improve the services in the city and improve our quality of life. Unfortunately, nothing happened with that. I be hesitant to vote for it again.” He agreed with Barrios that voters are intelligent, but said a potential tax-sharing agreement between the county and the cities of Hollister and San Juan Bautista would be a tough sell. “This stuff is really complex, it’s really confusing,” Rivas said. 

Supervisor Jaime DeLaCruz motioned to support placing a countywide 1 percent sales tax on the 2016 ballot, which Barrios seconded. The motion died, however, when the other three supervisors, including Jerry Muenzer, voted against it. Fontanos said such a tax would raise about $5.6 million per year.

After the vote, Barrios noted that if the county were to propose a tax measure on its own, “we will be competing with (the city of Hollister) in the June or November (2016) election because they will put it on their ballot to continue their sales tax. Botelho countered that if the city believes that voters are “anxious to continue and increase of the sales tax, they’re living in a bubble. We don’t need (a tax) to balance our budget; we shouldn’t use a special tax to balance our budget.”

Muenzer said he did not support the countywide tax measure as presented because “we were committing the city of Hollister to something they were not committed to,” referring to a repeal of the city’s 1 percent tax. “It is very confusing,” he said. “We need to vet this out a little better.”

Barrios said that the county is “running out of time if we’re going to do anything at all” and added that “we’re the lead agency; we should be taking the first step, not the city of Hollister … before we go out for a sales tax.”

Rivas then proposed a 1 percent general tax only for unincorporated portions of the county — leaving out cities such as San Juan Bautista, Hollister and Tres Pinos — and Botelho seconded it for the sake of discussion. That motion failed 3-2, with Rivas and Botelho voting in the affirmative, and then Botelho proposed that county and city officials have a joint meeting to discuss next steps.

“We’re asking a lot of the voters and we want to make sure we’re all on board,” said Barrios, directing County Administrative Officer Ray Espinosa to schedule the meeting.