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Arroyo Grande’s Measure E sales tax takes effect April 1; city projects about $6 million annually
Summary
City Manager Matt Downing reminded the council that the voter-approved Measure E 2024 local sales tax increase will begin April 1, 2025, raising Arroyo Grande’s sales tax to 8.75% and generating an estimated $6,000,000 per year.
City Manager Matt Downing told the Arroyo Grande City Council that Measure E, the city's voter-approved sales tax increase, takes effect April 1, 2025, and will raise the city's sales tax rate to 8.75%.
Downing said the tax, approved in 2024, will remain in place for 10 years and is expected to generate approximately $6,000,000 annually for the city. He noted the new combined rate aligns Arroyo Grande with six of the other seven cities in San Luis Obispo County.
Downing also used the city manager's update to remind residents and businesses of other city items: final stages of an upgrade to the city's emergency operations center, delivery of a grant-funded DUI enforcement trailer, the Five Cities Fire Authority's upcoming weed-abatement inspections in April and newly released state fire-hazard severity maps the council will consider at a future meeting.
Downing did not present a new ordinance or seek immediate council action on Measure E at the meeting; he framed his remarks as a reminder that the tax will begin collecting on April 1. No votes or formal council actions on Measure E were taken at this session.
