The sales tax added to purchases throughout Santa Cruz County rises one half-cent on Saturday, April 1.
In Scotts Valley and nearby Santa Cruz the new combined sales tax rate will be 9 percent, 9 cents on every dollar purchased.
In unincorporated areas of the county, which include the communities of the San Lorenzo Valley, the new combined sales tax rate will be 8.5 percent.
The half-cent/ half of one percent increase was the result of voter approval of Measure D, the transportation bond measure, last November.
The cities’ tax sales tax rates had dropped from 8.75 to 8.5 on Jan. 1, 2017, because a three-year temporary 0.25 percent statewide sales and use tax was no longer in effect.
California has the highest state-level sales tax rate in the country.
Scotts Valley’s sales taxes are higher because city voters approved an eight-year temporary half-cent tax nearly three and a half years ago – Measure U in November 2013.
Measure D was approved by voters last Nov. 8 to fund countywide transportation projects. The Measure D sales tax increase is expected to raise $17 million a year for the next 30 years. The Regional Transportation Commission, which will channel money from the tax increase to cities and county, is asking for project plans. The deadline for work plans is June 30.
The transportation commission will later create work plans for large-scale regional projects, such as the widening of Highway 1 and Highway 9 improvements.
Each agency receiving Transportation Improvement Measure D funds is required to annually adopt, after holding a public meeting, a five-year list of projects, providing details on how the funds will be used.
Most cities, the County of Santa Cruz, and Santa Cruz Metropolitan Transit District (METRO) are developing their project lists as part of their annual budget and Capital Improvements.
The Scotts Valley Chamber of Commerce had endorsed Measure U, which was approved by voters by a three-to-one margin. Measure U authorized in the city to levy a temporary, eight-year half-cent sales tax
in 2014 to bail out post-Recession city finances.
It is expected that the local tax will generate $1.2 million this year.
“The City of Scotts Valley has traditionally been a low tax city. When compared to the rest of the county this unique,” said chamber executive director Danny Reber. “Cities such as Santa Cruz, Capitola, and Watsonville all have a permanent additional sales tax.”
