During a recent government meeting, officials discussed the potential implications of a proposed 0.75% tax increase, which could raise the city's tax rate to 9.25%. This adjustment would align the city of Arcadia with Eureka, which currently has the same tax rate. The discussion highlighted that the proposed tax increase does not account for a potential county ballot measure expected this fall, which could further raise the tax rate.

If both measures pass, Arcadia's tax rate could reach 10%, mirroring the anticipated rates in Eureka and Fortuna, should their respective measures also succeed. This would place Arcadia among the higher tax regions in California, where rates can range from a low of 7.25% to as high as 10.75% in some southern cities.

Officials noted that the tax structure is designed to benefit the locality where purchases are made, meaning that sales tax collected from vehicle purchases, for example, would remain in the city where the sale occurs. This system aims to encourage local spending, although it was acknowledged that residents often travel to neighboring cities for purchases, such as toilet paper, due to varying tax rates.

The meeting underscored the importance of these tax discussions as local governments navigate fiscal strategies and community needs ahead of the upcoming ballot measures.