S.F. Sets Vote on Tax Hikes

The San Francisco Board of Supervisors this week agreed to hold a special election on June 2 to allow voters to decide whether to increase taxes to help close an expected gap of $576 million in the general fund for 2009-2010.

Supervisors have proposed a wide range of tax hikes, but they have not yet passed any of them. Mayor Gavin Newsom said he didn’t support asking voters for more money until the city could present a package of budget cuts and tax increases that had the support of a wide range of local business, labor, and political groups.

While Newsom could veto the special election ordinance, supervisors passed the measure by a margin of 8 to 3 and could override his veto.

Supervisors have proposed tax and fee increases such as a new 1% gross receipts tax for businesses, a one-half cent increase in the sales tax to 9%, and creation of a new city vehicle license fee.

They have also proposed charter amendments that would change budget rules to allow the city to spend its entire rainy-day fund next year and to modify voter approved spending set-asides.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER