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A Preemptive Sales Tax Increase


The City's rationale behind the 3/4% tax increase is nothing more than a preemptive sales tax increase on Glendale's already strapped taxpayers.


The State’s sales tax cap is 10.25%. There is clear evidence that other districts and agencies will soon propose sales tax measures, which would be applied to Glendale residents regardless of how the local majority in Glendale votes on such measures. The City is simply preserving locally generated revenues within the City’s sole jurisdiction. Present data shows that a tiny fraction of these funds generated in Glendale are returned to the City for addressing local needs.   


As an example, this fiscal year, Glendale is expected to send $90 million to the County and regional agencies in special sales taxes, but only receive $15 million in return. For instance, Glendale is projected to generate $10 million because of Measure H, which is a 0.25% sales tax increase approved by county voters in 2017 to support homeless services. Yet Glendale is estimated to receive only $395,000 back in Measure H funding.


If voters do not approve Measure S, other jurisdictions like the County or a regional agency will be authorized to seek countywide sales tax approval, and those funds will not be solely retained in Glendale. Unlike a possible County or regional agency tax, 100% of the $30 million generated by Measure S would stay in Glendale.  Further, any future tax increase proposals cannot be assessed on Glendale residents, regardless of their passage, because that would be in excess of the maximum cap allowed under law of 10.25%.

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