HomeMy WebLinkAboutGT Transactions Use TaxTRANSACTIONS & USE TAX
MEASURE
July 28, 2026
Adrian R. Guerra, City Attorney
1
City Council Goals
›Goal #1
–“Ensure Our Fiscal Viability” by identifying additional revenue
sources
2
Background
›Transactions and Use Tax Measure Placed on the Ballot
at the November 2024 General Municipal Election
›Voters did not approve the measure
›City Council has explored both a special tax or a general
tax for the November 2026 election
›After discussion during multiple meetings, the City
Council decided to move forward with a Transactions
and Use Tax Measure as a general tax for the November
2026 General Municipal Election
3
Proposed Ballot Measure For Consideration
›Proposed as a ballot measure at the November 3, 2026
General Municipal Election
›Transactions and Use Tax at a rate of 1.00%
›General tax for general government use
4
GRAND TERRACE GENERAL SERVICES MEASURE. To maintain and enhance essential
City services — including police protection, neighborhood patrols, 9-1-1 emergency
response, and rapid response times — shall the City of Grand Terrace enact a one-cent
(1%) sales tax, providing approximately $1.2 million annually for general City use until
ended by voters, with all funds staying local, public spending disclosure, and
independent annual audits?
Yes
No
Fiscal Impact
›Revenue:
–1.00% tax estimated to generate $1,200,000 in general fund
revenues
›Costs anticipated include:
–City Attorneys’ fees to prepare impartial analysis; and
–Costs for reviewing and/or preparing written arguments and
rebuttals; and
–No more than $175,000 charged by California Department of
Tax and Fee Administration to administer tax
5
Resolution
The following items regarding transactions and use tax must
be completed by City Council:
›Adoption of the resolution:
1.Ordering submission to qualified electors of the City of a measure
relating to a transactions and use tax at the general election to be
held on November 3, 2026.
2.Setting priorities for filing written primary argument(s) and rebuttal
arguments, and directing the City Attorney to prepare an impartial
analysis regarding the transactions and use tax measure.
3.Directs staff to accomplish other election matters required by law.
6
Readings of the Ordinance
›If the resolution is adopted, then the City Council will
need to conduct a first reading, by title only, of an
ordinance relating to transactions and use tax measure
›Second reading and adoption of the ordinance to occur
after the election if the measure is approved by the
voters
7
Recommendation
›Adopt the proposed resolution and conduct first reading
of ordinance if the City Council desires to place the
ballot measure on the November 3, 2026 election; or
›Provide other direction to staff.
8