VOTE NO ON MEASURE K THE LARGEST SALES TAX INCREASE IN MONROVIA'S HISTORY

The Monrovia City Council wants to raise your sales tax to the maximum 10.25% allowed under California State Law.  This will take approximately 4.5 million dollars from the pockets of city residents, people who work in our city and their guests who visit our city and add it to the city general fund ("City Coffers") every year according to the Measure K ballot description put forth by the City of Monrovia.  This is a tax increase you will pay every time you eat at a restaurant in Monrovia (including Old Town), every time you buy clothes in Monrovia, every time you buy school supplies for your kids in Monrovia, every time you buy appliances in Monrovia or purchase a vehicle that you register in Monrovia.  

This tax increase will also hurt the mom and pop businesses in Monrovia, because people will spend their dollars outside Monrovia in other cities with a lower sales tax where they can buys goods and services cheaper.  Further, if you increase the costs of goods and services by almost one percent in Monrovia, people will cut back on their spending.  Measure K is the largest sales tax increase ever proposed by the City of Monrovia.  Further, not even the County of Los Angeles has ever proposed such a large sale tax increase of almost 1 %.  

The largest tax increase in city history also has no specific allocated purpose and will simply go into the general fund of the city. There is no guarantee that you will see better municipal services.  There are no specifics as to how the money will be spent.  This seems like an unnecessary money grab by the City, who apparently does not even need the new money.  Former city manager Oliver Chi was quoted in the San Gabriel Valley Tribune (March 30, 2019 article) as saying:

Unlike other financially strapped cities that have recently raised the local sales tax rate — Pasadena and Pomona in November, Glendora earlier this month — Monrovia isn’t in dire need of the money, Chi said. But the influx could jump start some back-burner aspirations.

We do not believe that is a basis to take money from the hard working residents of Monrovia.  California is heavily taxed and there is already a high enough cost of living in our state.  Many businesses and Californians are leaving California for other lower costs states due to the high tax burden and the high cost of living here.

Background Of The California Sales Tax

Under California law, the state of California collects a minimum 7.25% sales tax. California law requires the state to send back 1.25% of that amount collected to the county and local governments. The city of Monrovia receives 1% of the revenue collected from the minimum sales tax.  This does not include the additional amounts the City of Monrovia collects from property taxes.  Local counties and municipalities can levy additional sales taxes on top of that minimum 7.25% amount, generally not to exceed 2 percent for a County or City. A city or county cannot levy more than a 2 percent sales tax increase above the 7.25% minimum according to California Rev & Tax Code § 7251.1

Currently, the County of Los Angeles is already above that maximum limit for a sales tax increase.  The County of Los Angeles cannot place onto the ballot another sales tax increase, without the approval of the State of California to increase the limit any higher.  The campaign in favor of increasing the Monrovia Sales Tax is using fear that the County could seek to place another sales tax increase on the ballot in the future.  

History of Recent Los Angeles County Sales Tax Increases Showing Los Angeles County Has Reached The Cap Established By California Rev & Tax Code § 7251.1

In 1980 Los Angeles County approved Proposition A, which was a 0.5% sales tax increase devoted to fund transportation projects in Los Angeles County.

In 1990, Los Angeles County voters approved Proposition C, which was a 0.5% sales tax increase devoted to fund transportation projects in Los Angeles County.

In 2008, Los Angeles County voters approved Measure R, a 0.5% sales tax increase on the ballot for transportation, which narrowly passed, it was a temporary sales tax increase passed for 30 years.

In 2012, Los Angeles County voters rejected Measure J, which was a proposal to extend the Measure R, 0.5% sales tax increase for an additional 30 years to 2069. (This was defeated by voters, contrary to the ballot statement of the City of Monrovia which said the voters never turned down a sales tax increase)

In 2016, Los Angeles County voters approved measure M, the 0.5% sales tax increase, for additional transportation projects.

In 2017, Los Angeles County voters approved Measure H, a 0.25% temporary homeless sales tax increase in Los Angeles County for a period of 10 years.

Los Angeles County has reached the cap established by California Rev & Tax Code § 7251.1 and needs state approval to put another sales tax ballot measure on the ballot, which is something that is missing in the ballot statement put forth by the City of Monrovia that the County of Los Angeles Does Not Currently Have The Unilateral Authority To Place Another Sales Tax Increase on The Ballot.

Monrovia Receives County Sales Tax Dollar Investments Back To Monrovia To Different Degrees Depending On The Specific Measure 

The City of Monrovia has received millions back to our City from these county sales tax increases with the building of the gold line, our new train station, new parking structure, and the major $265 million dollar gold line maintenance yard built in Monrovia.  This is contrary to the argument the City of Monrovia does not receive its fair share of county sales tax dollars that it puts into the system.  Sales tax dollars from other municipalities were taken by Los Angeles County and invested in Monrovia.  The City may be right in their argument that measure H, dollars are being taken from Monrovia and invested elsewhere, just like other municipalities dollars were taken and invested in the gold line in Monrovia.