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Measure E: City of San Diego Sales Tax


The Question

Should the City impose a new 1% sales tax in order to generate additional revenue for the General Fund? 


The Situation

Currently, the sales tax rate in the City of San Diego is 7.75%, and the City receives 1 cent on each dollar of taxable sales. This tax rate is among the lowest among cities in California. The City has a $200 million structural budget deficit, which means ongoing costs exceed ongoing revenues. 


The Proposal

Measure E would raise the total sales tax to 8.75% and double to 2 cents the amount of revenue the City receives from each dollar subject to sales tax. This measure was initiated by the San Diego City Council. If approved, the collection of the higher tax would begin on April 1, 2025. 


Fiscal Effect

If the measure passes, it is expected to raise an additional $360-$400 million in the first year which would be deposited in the City’s General Fund and be available for unrestricted purposes. If the measure does not pass, the City would not receive these funds. The City would lack the ongoing funds needed to support current operations and would not be able to address the backlog of infrastructure needs without making significant reductions in spending.


Supporters Say:

  • Improves emergency response times by upgrading police, fire protection, paramedic and 9-1-1 equipment and facilities.
  • Supports better neighborhood infrastructure including roads, sidewalks, streetlights and water quality.
  • Every penny generated stays exclusively in the City of San Diego for work needed in our neighborhoods. The City has few other ways to raise funds. It receives only 17 cents per dollar of property tax raised.

Opponents Say:

  • No sunset clause, allowing the tax to remain in effect until repealed by voters.
  • The City of San Diego continues to waste your hard-earned tax dollars. San Diego’s residents are paying enough taxes, but the money is going for the wrong things in ridiculous amounts. We need better fiscal accountability.
  • Funds go into the General Fund and could be spent on anything, including workers pay raises and pensions. This can result in unchecked spending and poor fiscal management.

For More Information


Supporters:

Todd Gloria, San Diego Mayor

Raul Campillo, San Diego City Councilmember

George Duardo, President, San Diego City Firefighters, Local 145

Jared Wilson, President, San Diego Police Officers Association

Linda Legerrette, Board Member, San Diego Middle Class Tax Payers Association


Opponents:

San Diego County Taxpayers Association 

  • Haney Hong, President and CEO
  • Ronne Froman, Former Chief Operating Officer, City of San Diego; Retired Naval Officer
  • Scott Sherman, Former City Councilmember, City of San Diego
  • Rick Gentry, Former President and CEO, San Diego Housing Commission
  • Michael J. Frattali, Homeowner, Taxpayer, Veteran