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Hercules voters face possible 10.75% sales tax if two measures pass

Hercules, Calif., will vote in November on a 1% sales-tax increase that could push the city’s total rate to 10.75% if a countywide transit levy also passes.

In a 4-1 vote, the Hercules City Council adopted an urgency ordinance to put a one-percent sales-tax proposal before voters this November. Mayor Chris Kelley framed the move as a necessary option to fund city services, noting that without new revenue the municipality could become financially constrained. Interim City Manager Patrick Tang described the current budget as barely sufficient and projected deficits as costs continue to rise.

Opponents, including the Contra Costa Taxpayers Association’s Marc Joffe, contend that Hercules’ limited retail sector, exemplified by a single Home Depot, cannot generate the needed funds and that the tax would mainly affect shoppers from outside the city. If the local measure and a separate half-cent countywide transit levy both pass, the combined sales-tax rate would climb to 10.75%, potentially making Hercules one of the most expensive places in California to make purchases. Critics fear the steep rate will push consumers to shop in nearby towns such as El Sobrante, Richmond or San Pablo, further eroding the city’s tax base.

Why it matters

A 10.75% sales tax could significantly raise shopping costs and push local consumers to neighboring towns.

In this story

sales tax hikeHercules10.75% rateballot measureretail basetransit taxbudget deficit