Voters in the city of Benicia will decide on two tax measures this March.
Measure A proposes raising the transient occupancy tax from 9 percent to 13 percent for a period of 12 years. It would generate an additional $250,000 per year, according to an analysis from City Attorney Benjamin Stock.
Measure B would impose a three-quarter-cent sales tax for 12 years, which would generate an estimated $5.4 million annually.
An identical sales tax increase, Measure R, was narrowly defeated in November 2022, when 6,594 voted against it and 6,300 voted in favor.
Both measures A and B need 50 percent plus one vote to pass.
Backers of both measures, including the City Council, intend for the funds to be used to maintain police services, 911 response times, parks and libraries. But both taxes would go into the city’s general fund and would not be restricted to those purposes.
Supporters point to the fact that the city has cut 10 positions due to financial constraints. Measure B’s backers estimate the change would cost residents about $10 per month.
The hotel tax applies to anyone who rents lodging in the city for 29 days or less, including Airbnb and other short-term rental platforms. It would take effect Oct. 1.
The Solano County Taxpayers Association has opposed both measures, arguing that the hotel tax could reduce tourism and the sales tax increase will hurt local businesses.
The current retail sales tax rate in the city is 8.375 percent. The state gets 7.25 percent, Solano County gets 0.125 percent and 1 percent is kept by the city.
The increase would make the new retail sales tax 9.125 percent, with the city keeping the additional amount approved by voters.
Sales taxes in the state range from a low of 7.25 percent to a high of 10.75 percent.
The deadline to register to vote in the March 5 primary election is Feb. 20.