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Six Alameda County cities, including Union City, have total sales tax rates of 10.75%, higher than anywhere else in California.
Because of that, as Union City seeks voter approval to keep its rate that high, it would be easy for some to oppose the measure. But a deeper look shows why Measure Z on the Nov. 8 ballot deserves voter support.
It’s not the city’s fault that the tax is so high. Rather, blame voters throughout Alameda County. To understand why, consider the three components of sales tax rates in California:
There is the statewide portion of 7.25%, of which the state keeps 6% and gives the local counties and cities the other $1.25%.
Then there are the countywide taxes, which total 3% in Alameda County, including 0.5% for BART. That’s where the problem is. No other county in the state comes close to that 3% rate. The next highest is Los Angeles at 2.25%.
To that, Union City and the five other Alameda County cities — Alameda, Albany, Hayward, Newark and San Leandro — have added 0.5%. That’s common in California.
To their credit, Union City officials have not made their portion permanent. They obtained voter approval in 2010 and, as the original tax was about to expire, got permission from voters in 2014 to extend it to 2025. Now, with Measure Z, they are seeking voter approval to extend the city tax to 2034.
The city portion currently raises about $6.3 million annually, which is a key part of Union City’s general fund revenues of $83.5 million. City officials have run a lean operation, especially during the pandemic. Nevertheless, without the sales tax extension, the city would face budget deficits starting in the 2025-26 fiscal year.
Since the sales tax was last extended in 2014, city officials have gone to the voters seeking approval for other taxes. Voters approved a parcel tax extension in 2016, approved a cannabis business tax and very wisely rejected a tax on property transfers in 2018, and approved a utility tax in 2020.
It unfortunate that the city needs the sales tax extension. But it does and it should not be punished for the countywide excesses. Voters should approve Measure Z.
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