The Use Of Fear To Pass The Largest Sales Tax Increase In Monrovia History

Please Understand The Campaign To Pass The Largest Sales Tax Increase In Monrovia's History is using fear as the only basis to pass the sales tax increase. However, the law does not quite support that.

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 (the language is below)

The combined rate of all taxes imposed in accordance with this part in any county may not exceed 2 percent. No tax shall be considered to be in accordance with this part if, upon its adoption, the combined rate in the county will exceed 2 percent.

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. Obviously, the state could approve that just like they could approve a sales tax hike in excess of the current 10.25% maximum allowed under current law. 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 as their main basis for increasing the tax ourselves. The reasonably prudent thing to do is to not increase taxes on ourselves out of an arbitrary fear that some day in the future the sales tax could go up. That is not a basis to raise taxes in our opinion. This is another reason to vote no on the largest proposed sales tax increase in city history, because the reason behind the approval of the tax is fundamentally flawed. In the end, California is over taxed and this sales tax increase will be paid every time you buy school supplies for your kids, buy office supplies in our city, every time you eat at a restaurant in Monrovia (including Old Town), every time you buy clothes in Monrovia, every time you buy appliances in Monrovia or purchase a vehicle that you register in Monrovia. VOTE NO on measure K.