Santa Cruz County proposes temporary sales-tax hike to fund health and safety services

The Santa Cruz County Board of Supervisors voted to place a half-cent sales-tax increase on the November ballot as a stopgap to cover looming cuts to health and social-service funding.

Santa Cruz County officials moved to put a temporary half-cent sales-tax increase before voters on the November 3 ballot, citing a declared state of financial distress. The tax would rise to 10.25% in Santa Cruz, Scotts Valley and Watsonville, with slightly lower rates in unincorporated areas and Capitola, and is projected to bring in about $27 million each year for five years. Funds would support health care, emergency services, homelessness initiatives and mental-health treatment as federal changes threaten to cut more than $150 million in county and partner revenues.

County Executive Officer Nicole Coburn warned that the shortfall could ripple through the entire local safety net, while Board Chair Monica Martinez said the ballot measure lets residents counter federal moves to dismantle the Affordable Care Act. Critics, including a resident named Steinbruner, called the tax regressive, arguing it would burden the very people it aims to help.