Sales Tax Reaches 10.25 Percent In El Cerrito, Union City
EL CERRITO (KCBS) - The sales tax in El Cerrito and Union City became the highest in California when statewide sales tax hikes kicked in Friday.
Some business owners said they're concerned the new 10.25 percent rate could drive away sales just as the economy seems poised for a recovery.
"This isn't the back breaker, but this is just one of many things that make it tougher to do business, in the city and in the state," said Jeffrey Pryde, manager of Pastime Ace Hardware on San Pablo Avenue.
KCBS' Anna Duckworth Reports:
Pryde said the number of empty store fronts up and down San Pablo Avenue should be a wake-up call for city leaders to brainstorm ways to attract businesses and customers.
Ten cents on every $20 spent can add up for big ticket items, enough that some of Pryde's customers on Facebook have indicated they would shop elsewhere.
"It's disheartening and there's nothing that we can do about it. We can't offer them incentives to shop here," Pryde said.
Nonsense, said Bruce Page, one of several in the store who voted for the ½-cent sales tax hike that passed with a 58 percent majority.
"What am I going to do? Go somewhere else?" Page said, adding that the convenience of shopping in the neighborhood far still outweighs the cost.
Page predicted the higher sales tax would not affect business any more than other sales tax approved by El Cerrito voters over the years.
"El Cerrito votes for everything that comes along and it doesn't seem to affect business. We like our improvements," he said, such as the new city hall and improvements on Fairmont Avenue.
"Everything comes along, we vote for it," Page said.
The sales tax went up in 14 California cities. The top tier 10.25 percent rate is also effective in two Los Angeles County cities, Santa Monica and El Monte.
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