Santa Barbara ballot measure seeks to increase sales tax

The City of Santa Barbara’s sales tax is currently at 8.75%, but it could go up to 9.25% — a half-cent increase should Measure I pass in November.

To see the impact this would have on Santa Barbara residents, I went shopping.

The increase on some items is only a few cents, but it can add up when applied to more expensive goods like cars.

To run the sales tax numbers, I sat down with Steven Hartman at Milpas Motors. Current taxes on a $40,000 car will cost you $3,500. If taxes are raised a ½ cent the new amount
would be $3,700, a $200 increase.

If approved, the city estimates the annual sales tax revenue would bring in more than $15 million to the city’s General Fund, which pays for local services, including public safety, maintenance, libraries, and affordable housing. Without this tax, the city says it could see deficits of as much as $11 million to $15 million in the next three years despite budget reductions across departments.

"Our government needs to learn how to manage the money we give them already," said Roger West, Santa Barbara resident.

"Taxes are designed to help us do things like paving roads and the services that are mentioning," said resident Laurie Lauer.

"I would prefer the tax money that's already being collected be allocated more realistically and more beneficially than taxing us more," added resident Lorena Cheverz.

The tax increase would not apply to services, rent, groceries, prescription medicine, utilities, diapers, or feminine hygiene products.

If voters approve Measure I in November, the new sales tax rate of 9.25% will take effect on April 1, 2025.

For more key facts on Measure I, visit the city's website.