Vote No on Measure K

Measure K, the Encinitas Sales Tax Measure, will hurt families and harm businesses at a time when the city rakes in more money than ever before.

Measure K will push the high cost of living even higher

Hardest hit by this new tax will be those who can least afford it, like seniors on fixed incomes and low- and middle-income families. This comes on top of recent moves by the council to aggressively increase rates for water (40%) and sewer (19%), with more to come in years ahead.

Measure K is deceptive

The city calls it a 1% sales tax, but increasing our sales tax rate from 7.75% to 8.75% is a 13% cost increase. If the county’s proposed 0.5% tax increase (Measure G) is approved, our total sales tax rate will go up even higher, to 9.25%, a nearly 20% increase. Combined, these measures would cost the average Encinitas household more than $1,000 extra per year.

You won’t be able to hide from this new tax

You can’t dodge this tax with online shopping at Amazon – California law requires online retailers to collect sales tax based on the “ship to” city. Also, new car purchases are charged sales tax based on the address the car will be registered at.

The ‘tourism’ deception

Measure K proponents claim that most of the revenue gain each year will come from tourism, but the city’s own data show that 80% of our city’s top sales tax producers are on El Camino Real, in stores like Discount Tire, Home Depot, Target, and Home Goods. These don’t reflect tourist purchases.

Local businesses will be hurt by this tax

A higher sales tax will reduce consumer spending and drive visitors away to other destinations, hurting our restaurants, shops, and attractions.

Measure K will DOUBLE the city’s annual sales tax revenue

Today Encinitas receives one percentage point of the 7.75% tax. Measure K will double that. The city claims the tax will raise $15.4 million, but they’re low-balling that. Their own reports show they actually received $17.1 million in FY 2023 (presumably more in 2024) – the new tax will DOUBLE that amount.

The city will collect an extra $200 million over ten years (using a conservative 3% growth estimate)

They could do a lot of damage with that much new money. For example, there’s been talk about providing a direct subsidy for new affordable housing, which has never been done before in Encinitas. Residents beware – the Affordable Housing Task Force, led by two members of City Council, is already targeting parks, schools, and churches for possible sites. How would you like to see a subsidized, low-income, high-density, housing project in your neighborhood? See exhibit below.

The city has a problem with spending, not revenues

According to the city’s Annual Comprehensive Financial Reports, over the past ten years total tax revenue has grown from $50.4 million to $89.5 million, up 78%, much more than the 30% inflation during the same time. The City Council has done a bad job of prioritizing the spending of this money. Now they’re asking for more to fix the problems they should already have been addressing. Take careful note of the Measure K language – most of the listed uses are ordinary operating expenses, not infrastructure.

Don’t believe the city’s empty promise to spend all the money on infrastructure

That promise was not written into the law – the ordinance for this tax specifically provides that any future council can spend the funds however they like. The promised oversight committee will be handpicked by the council and will have no authority to ensure that funds are spent on infrastructure. See excerpt below.

This tax will drive municipal costs higher

The city has made clear that it intends to hire more workers if the tax passes. We can expect Measure K funds to be used for more salaries, benefits, and pension costs. The problem of ever-growing unfunded pension liabilities will become worse.

Are you buying what they’re selling?

The city council launched their campaign for this measure just like a corporate marketing campaign. Spending scarce taxpayer dollars, they appropriated as much as $173,500 to pay a consultant to sell Measure K to the public. Their ballot language includes consultant-tested feel-good words like “parks”, “beaches”, and “public safety”, designed to exploit your emotions and good will.

The people backing this measure say it’s for infrastructure spending but the ballot language shows that’s not true. The biggest winners when Measure K dollars get spent will be the expanding list of city employees who prepare the budgets and financial documents, draft the agenda reports, process the growing pile of paperwork, and collect ever-rising salaries. They want you to say “Yes”. The right answer is “No”.

Vote “No” on the County’s Measure G tax increase

At all levels of government the demand for more revenue is unceasing. From Sacramento, to San Diego County, to Encinitas, evidence of wasteful spending abounds. It is one of the factors driving many residents out of California. Who will be left to pay the bills? Will it be you? Vote No on Measure K and Measure G.

Measure K is inflationary.
It’s harmful for families and local businesses.
It’s unnecessary.
Let’s just say, “No.”

Vote “No” on Measure K