Local Investment

Local investment (taxes) gives residents a choice to supplement our revenue to sustain essential City services and address over $200 million dollars in infrastructure needs, such as roads, parks and facilities.

Phases

Phases overview

✅ Sustain City Services (Measures A&B)

✅Address Roads and Infrastructure (Measure F)

✅ Sustain Benicia's Parks (Landscape & Lighting Assessment District)

Business License Tax Update

✅ Sustain City Services (Measures A&B)

March 5, 2024

About Measures A and B

Adopted by Voters in March 2024

Benicia announced an unsustainable budget deficit of $6.5 million in 2023. This budget deficit was a long time coming, caused by expenses continuing to outpace revenues, inflation, and a stagnant economy. The budget deficit of $6.5 million is just for operating expenses and does not include necessary maintenance on roads, infrastructure, city facilities, or parks.

To address the immediate need to sustain city services, Benicia put Measures A and B on the March 2024 ballot. Both measures were approved by voters.

Measure A: Transient Occupancy Tax (hotel tax) Increase (Passage rate: 78%)

An increase of Transient Occupancy Tax from 9% to 13%, paid for by hotels and visitors, to:

Maintain police patrols
Protect 911 response times
Support Economic Development

Measure B: 0.75% General Sales Tax Increase (Passage rate: 72%)

Funds police and fire services, protecting 911 response times
Protects recreation programs, library services, and maintenance of local parks

Both measures will end in 12 years and be monitored by an independent citizens oversight committee.

History of Measures A&B

Introduction to Sales Tax and Transient Occupancy Tax Measures

October 2023

As part of the City’s effort to meet the service needs of our community, maintain the status as a full-service city, and address millions of dollars in unfunded capital infrastructure needs, the City proposed an increase of one-half or three-fourths of one cent to our existing General Purpose, Transaction and Use Tax (Sales Tax). In addition, the City proposed an increase to the Transient Occupancy Tax (TOT), also commonly referred to as a hotel tax, from 9% to 13%. The consideration for these two measures was taken to the City Council on October 17, 2023, and was subsequently approved.

Placement of Measures A&B on the March 2024 Ballot

November 2023

As part of the City’s effort to meet the service needs of our community, maintain the status as a full-service city, and address millions of dollars in unfunded capital infrastructure needs, the City proposed an increase of three-fourths of one cent to our existing General Purpose, Transaction and Use Tax (Sales Tax) at the November 21, 2023, City Council meeting, to go on the March 5, 2024 election ballot. The proposal was approved and the measures were placed on the March ballot.

Resources:

Voters Overwhelming Approve Measures A and B

March 5, 2024

Voters chose to Believe in Benicia by investing in an increase to both the transient occupancy tax and sales tax in the March 2024 primary election. Not only did voters vote yes on both measures, but with record-breaking approval numbers and voter turnout. The TOT passed with 78% and the sales tax measure with 72% approval. The State average for sales tax voter approval was 60%. Benicia’s voter turnout was 50% and the State’s voter turnout was 26%.