If approved by a simple majority (50% plus 1) of votes cast at the City of San Fernando (“City”) General Municipal Election of November 6, 2018, the San Fernando Preservation and Beautification Measure (the “Measure”) would extend the City’s existing one half of one percent (1/2%) transactions (sales) and use tax indefinitely. This tax was first approved by San Fernando voters at a Special Election held in June of 2013 and is currently set to expire following September 30, 2020.
COLLECTION: The half-percent transactions and use tax is paid in addition to the existing County-wide sales tax on sales of tangible goods and is collected at the same time and in much the same manner as the existing sales tax. The tax adds approximately 50¢ to a retail purchase of $100 or a half-penny to a purchase of $1.00. With the exception of those items that are exempted from the tax, the tax applies to most over-the-counter sales of tangible goods and to restaurant sales. For purchases of big-ticket items (e.g., appliances and furniture), the tax would apply only if the item is delivered by the seller to a San Fernando address from a point of sale located within or outside of the City of San Fernando. For automobile sales, the tax would apply only if the vehicle purchased was registered to a San Fernando address, regardless of whether the vehicle was purchased from a dealership located in or outside of the City.
EXEMPTIONS: The tax does not apply to purchases of prescription medication nor does it apply to most basic grocery store food purchases for items like milk, meat, fish, vegetables, fruit, cereals, coffee, sugar, baby food, bread and other bakery products, nuts, condiments, candy, juices, bottled water and the like.
USES: The tax is a “general tax” per Proposition 218 and as such its proceeds may be used for any public or governmental purpose, including, but not limited to, police and emergency response services; the construction, maintenance and repair of City infrastructure, including streets, sidewalks and parks; cultural and recreational programming; staffing retention and recruitment; economic development efforts; restoration of the City’s emergency “rainy day” fund and other unrestricted general revenue purposes.
NON-RESIDENTS PAY: Non-residents will continue to share in paying the tax for most over-the-counter retail purchases thereby helping to pay for their use of the City’s streets and other infrastructure.
OVERSIGHT: The Measure will continue to require the annual preparation of a publicly available report that tells how much revenue was collected under the tax and how those monies were used.
