Two Republican leaders in the California State Assembly are facing internal criticism and opposition from taxpayer groups for their votes to advance a bill that would permit approximately a dozen counties and cities to seek sales tax increases exceeding the state's general cap. Assembly Minority Leader Heath Flora and Assembly GOP Caucus Chair Juan Alanis were the only Republicans to vote in favor of Senate Bill 762, which passed its final Assembly vote with the required two-thirds majority. Every other Republican in the chamber voted against the bill or abstained.
This bipartisan support for allowing local sales tax hikes comes as cities and counties seek exceptions to the 2% cap on sales taxes, which is written into state law. Democrats supporting the bill argue that local governments need additional funding to offset reductions in federal health and human services funding. However, opponents contend that such measures exacerbate the rising cost of living in California.
"We have been consistently opposed to the many bills introduced to increase local taxes," said David Kline, a representative for the California Taxpayers Association. "We are hopeful that legislators will start opposing these bills because they are dramatically increasing the cost of living in California."
Flora's vote, in particular, has generated frustration among some Republican lawmakers and donors, especially given his past stances and the primary election results for his district. Flora, who advanced to the November runoff, received only 30.6% of the vote, the lowest percentage among incumbent legislators in the June primary. He has also faced criticism regarding his responsiveness to constituents and his engagement with lobbyists.
Complaints about Flora's perceived lack of responsiveness and engagement with Republican priorities have led to some county Republican parties refusing to endorse his re-election efforts. "We’re disappointed by our state assemblyman and hearing from constituents," stated Joel Campos, chair of the Stanislaus County Republican Party. He cited a lack of communication from Flora's office, a reduced presence in his district, and an overall "lack of support for Republicans."
Senate Bill 762 now requires one more procedural vote in the California Senate before it can be sent to Governor Gavin Newsom's desk. The bill would authorize numerous municipalities and counties to impose a transactions and use tax that surpasses the established 2% statutory limit. The California Taxpayers Association noted that requests to exceed the tax cap are becoming increasingly frequent, contrasting with what they describe as a once-solid cap that is now frequently exempted.
California currently has some of the highest sales tax rates in the nation, with some localities already approaching a total sales tax rate near 12%. The California Taxpayers Association argues that the existing cap is not serving its intended purpose due to the numerous exemptions being granted.
