The sales tax in Eureka is extremely high at 10.25%. What would need to happen for you to support/push for lowering the Eureka sales tax?

— A Concerned and Broke Voter

Responses

Kathleen Herrera

The best thing I could probably do is to vote against any increase. Much as I would wish for lower sales tax or any other tax, I would be outvoted because the City of Eureka currently has a deficit.  

Jeff Leonard

First, we would need to address the budget deficit. The City transferred nearly $4 million from reserves to balance last year’s budget. Reducing the sales tax in Eureka by even less than 1% could add another $5 million to the deficit.

Given the size of the current deficit, it seems very unlikely that the City will be able to reduce the sales tax any time soon, without declaring bankruptcy.

Addressing the budget deficit is the current priority.  The first step is cutting costs and the City’s already headed in the right direction. This year’s budget is almost 10% smaller than last year’s budget.

The second step is growing our local economy by attracting new businesses and new residents to Eureka. When the economy grows, we have more jobs for everyone. Revenue to the City increases, making it possible to provide the essential services we all need.

 

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