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Councilmember reports on state sales-tax sharing proposal that could boost local revenue
Summary
A council member identified as Todd reported serving on a state revenue committee that recommended a phased-in 50/50 sales-tax sharing proposal; he said the change could return roughly 30% more sales-tax revenue to communities like Mount Shasta and may require a constitutional amendment to define e-commerce taxation.
A council member identified in the meeting as Todd told the Mount Shasta City Council he was appointed to a state revenue and taxation committee and described a proposal to shift sales-tax sharing to return 50% of certain sales taxes to communities without fulfillment centers.
Todd said the proposal would be phased in over five years and that some components could require a constitutional amendment to clarify how e-commerce and digital-media sales are taxed. He said one concrete change that does not require a constitutional amendment would direct the 1% currently collected and routed through counties to go directly to cities for local distribution.
During the discussion Todd said the measure could mean "approximately 30%" more in sales-tax revenue for communities that currently receive little storefront sales tax. He urged residents to contact state representatives and noted ongoing local efforts related to a sales-tax measure the city is considering for public safety funding.
Council members asked about timing and how residents could help; Todd said the proposal has been discussed in committee and recommended writing representatives and calling district offices. There was no motion or vote on the topic at the meeting.
The council's discussion also touched on defining e-commerce for taxation and parallel pushes to capture B2B sales and digital transfers such as software and media.
