Residents of Hercules, California, will vote in November on a ballot measure that would add a 1% sales tax to purchases, potentially raising the total sales tax rate in the Bay Area city to 10.75%. The Hercules City Council voted 4-1 to approve an urgency ordinance placing the measure on the ballot, citing limited revenue streams and the need to maintain city services.
If the proposed 1% tax passes, combined with a separate countywide half-cent transit tax also appearing on the November ballot, the city’s total sales tax rate would reach 10.75%. Taxpayer advocates argue this rate could make Hercules one of the most expensive locations in California for consumers.
Mayor Chris Kelley stated that the city has "very limited means to try and raise revenue" and that without additional funding, the city could face budget deficits. Interim City Manager Patrick Tang described the city's current revenues as "barely adequate" for maintaining services and projected rising costs would lead to deficits in the coming years.
City officials suggest that some of the increased tax burden would be borne by shoppers from outside Hercules, pointing to businesses like Home Depot that draw customers from neighboring communities. However, critics are skeptical.
Marc Joffe, president of the Contra Costa Taxpayers Association, expressed concern on social media platform X, noting that Hercules would be the third Contra Costa city to seek a sales tax hike on the November ballot. He warned that a combined 10.75% sales tax rate would be a significant increase.
The proposal has drawn criticism on social media, with some users questioning city spending and suggesting a need to address "fraud, waste and abuse" before raising taxes. Others have suggested shoppers might opt to purchase goods in nearby unincorporated areas or neighboring cities like El Sobrante, Richmond, or San Pablo, which are also proposing tax increases.
Hercules voters will also consider a parcel tax for schools in addition to the sales tax measure. The proposed sales tax increase comes as other Bay Area cities are also seeking additional tax revenue from taxpayers, fueling debate about fiscal management and government spending.