Tonight the Garden Grove City Council, on a 5-2 vote, placed a 1% sales tax increase measure on the November General Election ballot. Mayor Steve Jones (R), Mayor Pro Tem Kris Beard (D), council members Thu-Ha Nguyen (D), Kim Bernice Nguyen (D), and John O’Neill (NPP) voted in the affirmative for the tax hike while council members Phat Bui (R) and Stephanie Klopfenstein (R) voted against the placement.
As a general purpose tax, this ballot measure need just 50% + 1 voter-approval for passage.
According to city staff, a 1% sales tax hike will generate approximately $19,000,000 annually for Garden Grove. There is no sunset provision.
The Republican Party of Orange County earlier in the day issued this statement from its Chairman Fred Whitaker:
While the sponsors of this tax increase have downplayed the financial impact this will have on residents, the passage of this proposal is simply not feasible for the voters of Garden Grove. Garden Grove has an amazingly diverse economy and thriving engine of commerce that is put at risk by this tax increase. I urge all Republican members of the City Council of Garden Grove to vote against this proposal and look for other alternatives to their budgetary concerns.
Click here for the staff report rationalizing the need for the tax increase.