Concord's voter approved half-cent increase in the sales tax (Measure Q) goes into effect on April 1.
The Board of Equalization has sent this special notice to all businesses required to collect and file tax reports with them. The notice lists all jurisdictions that will be changing their sales tax rate.
The increase in the sales tax will last five years and is expected to generate approximately $8 million dollars per year. These funds will be used to protect core city services and replenish the city's budget reserves. The additional revenue will not be used to restore city services or staff positions cut over the past two years as the city worked to balance its budget against declining revenues.
In approving the temporary sales tax increase (Measure Q) the voters also directed the City Council to appoint an Oversight Committee. In January 2011 the Council decided the Oversight Committee should consist of seven members - 4 residents, 2 Concord business people (who may not live in Concord) and 1 who could be either a resident or business person. The Council is expected to interview and appoint the initial Oversight Committee sometime in the next month.
I have applied to serve on the Oversight Committee because I would like to ensure the commitments the city made to Concord voters about the use and temporary nature of the additional sales tax are kept.
I know tax increases are unpopular. The alternative - further cuts in city services after two years of program reductions, staff reductions and employee compensation concessions would also be unpopular.
The new sales tax revenue will give the city some flexibility as it struggles with yet another "take-away" by the state with the near certain elimination of redevelopment agencies in this year's state budget package. I hope our legislators work with Governor Brown to create a new mechanism voters can approve to fund a new style of redevelopment and/or economic development efforts.
I appreciate the vision Concord voter's expressed when they passed Measure Q last November. Now it will be important to see that the new revenue is used properly to stabilize city services and replenish our budget reserve - so that in five years we are prepared when this revenue source expires.
