Voters may see 1/2 cent sales tax increase measure on November ballot

With millions of dollars in road repair needs ahead over the next several years, the City of South Lake Tahoe is going to move forward with plans to put a ballot measure before the voters this November.

A half-cent sales tax increase in the city limits would bring in enough funds to start a preventative maintenance program as well as fixing current problems, something Assistant Public Works Director Jim Marino said they've wanted for over ten years.

Marino said the tax increase would improve roads for not only driving, but also for biking and walking. He also said a road program would allow them to implement ADA improvements, it would also increase jobs, stimulate the economy and improve roads for not only locals, but for tourists and perspective investors.

A study was recently conducted in the community to determine is a sale tax measure was feasible, and what type of measure is consistent with community priorities. During the March 13-22 survey of 353 City voters, True North Research found a positive reaction as long as funds went only to fixing roads and not end up in the general fund.

51.2 percent said they would definitely give a "yes" vote for the half-cent sales tax increase for roads. "Probably yes" votes came in at 12.5 percent, "definitely no" was 21.6 percent and "probably no" was 11.7 percent.

According to Dr. Timothy McLarney of True North Research, in his presentation to City Council, said voters under 50-years-old would probably not show up to vote in November due to the possibility of this measure flying solo on the ballot during a non-presidential election. Those who own homes would make up the majority of voters along with those over 50, according to the survey.

With guaranteed revenue from the tax increase, the City would be able to address the over $41 million in current deferred road maintenance needs. Marino said to replace very road would cost $190-200 million so they would evaluate which roads needed replacing and which could survive for several years with patching. Since many local roads were constructed in the 1940s and 50s they weren't built with bases as roads are today. Al Tahoe Boulevard is an example of a road that was replaced with one with a base, and after ten years it is still in very good shape according to Marino.

75 percent of taxable purchases in South Lake Tahoe are made by those not living in the community. Tourists from San Francisco, Sacramento and Los Angeles are used to seeing a higher tax rate, many of which were increased April 1. Los Angeles area taxes range from 9 to 9.5 percent, Sacramento 8-8.5 percent, and Bay Area 8.5 to 9.75 percent. The current tax in South Lake Tahoe is 7.75 percent.

A ballot measure to raise taxes in November, 2016 failed, but many have speculated it failed because the funds raised wouldn't be dedicated only to roads as this new measure would. It was also a confusing advisory measure, so roads were only one of three choices.

The City Council voted unanimously on may 2 to bring back the proposed ballot measure in the near future to determine its language and to write a resolution. Council will need to approve by July 5 to make it on the November ballot.