Martinez Tribune The website of the Martinez Tribune.
Dear Editor,
I have told Mayor Schroder that we need serious street repairs in Martinez. We have discussed the issue and I appreciate that he is looking for a solution to the problem.
He has recently suggested a sales tax increase of 1 percent to fund the repair of our streets. That is a solution which should be looked at very closely. My experience and education in policy development leads me to two questions.
First, how much revenue do we actually recognize, and second, how may it affect shopping in Martinez?
Assume that we increase the sales tax by 1 percent as he has suggested. How much of that does the City recognize?
According to HdL Coren & Cone, the 8.5 percent that we currently pay is split so that Martinez gets 1 percent and the rest of the 7.5 percent goes to other governmental entities. In the same way, if we increase the sales tax the Mayor’s suggested rate of 1 percent, the City would only recognize a net of .12 percent. Thus, very little is gained relative to what we pay.
It can be argued that we gain by the tax revenue added by those coming in from other cities. But will that really happen?
This brings me to my second point. As we know, attracting people from outside of Martinez to shop here is already a challenge. The businesses on Main Street already feel that pain.
Ask yourself this question. If you are going to buy a moderately priced refrigerator, range and dishwasher, would you go to Home Depot in Martinez, or go for a short additional four mile drive to Lowe’s in Concord and save money? Maybe you would not make the drive. However, people in Martinez tend to live moderate lifestyles and are careful in how they spend money. I believe many would make the drive as would buyers from other cities who do not have the loyalty to Martinez that we have.
A sales tax increase may very well drive buyers away from Martinez – yet one more hit to Main Street and all businesses. Before action is taken, multiple options should be looked at and we need to thoroughly assess if a 1 percent tax increase is the route to take.
– John Stevens
I appreciate John’s comments with respect to my request for the Martinez City Council to explore the possibility of placing a sales tax measure on the November 2016 ballot. However, my proposal is for a 1/2 cent sales tax, not a 1 cent sales tax.
Also, John is incorrect as to how the additional sales tax would be allocated if approved by the voters. Any local increase does not get split between other governmental entities as the 8.5% does. 100% of the additional sales tax stays in Martinez.
Finally on the point that a shopper would pay less sales tax at Lowes in Concord than they would at Home Depot is Martinez is not true. Concord has a local 1/2 cent sales tax and has for many years. That sales tax has helped them pave roads and increase their police force.