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Voters okay Sacramento's sales tax hike

The 1 cent sales tax passed by Sacramento voters goes into effect on April 1st, 2019.

Sacramento voters approved Measure U, which doubles the city sales tax from 1/2 cent to 1 cent.

What’s the difference between 2018's Measure U and the last Measure U?

The Measure U that voters approved in 2012 was a ½ cent sales tax and will be expiring in March 2019. Measure U bumps that up to a 1 cent general sales tax.

The City of Sacramento has invested the money from current Measure U funds into the police department, fire department, and parks department.

Funds from Measure U have supported the following positions:

  • 90 positions in the fire department
  • 195 positions in the police department
  • 137 positions in Youth, Parks, & Community Enrichment

According to the City, these departments would have seen significant staff cuts if Measure U hadn't been renewed.

The renewal and increase means the Sacramento tax rate will be 8.75 percent.

How much money does it generate?

The tax is expected to produce $95 million per year. The City says the money will go toward maintaining and enhancing City services and allowing investment in youth, affordable housing, and economic development.

What kind of oversight would it have?

IMeasure U will have a citizen’s oversight committee to review the revenue and expenditures from the tax.

Measure U is a general tax. This means that the measure’s revenues go directly into the General Fund for any municipal purpose, and it will only need a majority vote to pass. Since the measure is a local tax, all the revenue generated will stay in Sacramento.

The tax will go into effect on April 1, 2019.

For additional information on Measure U such as the City Attorney Impartial Analysis, arguments, and argument rebuttals, click here.

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