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Monterey council directs staff to pursue 0.375% sales-tax proposal after narrow polling support
Summary
After a presentation of new polling, the Monterey City Council directed staff to further develop a 0.375¢ sales-tax measure with a nine-year sunset and to explore a parking tax and a narrowly defined admissions tax; the council paused work on a vacant-home tax pending legal review. Polling showed narrow majority support but underscored the need for accountability messaging and further legal review.
The Monterey City Council on Jan. 20 reviewed fresh voter polling and gave staff direction to develop ballot language for several possible revenue measures, including a 0.375-cent sales tax with a nine-year sunset.
FM3 Research presented results from Jan. 5–13 polling of likely June 2026 voters. The consultant, introduced as Del Pupo, reported that “a majority of voters support either of the proposed measures” in the baseline wording and that support held narrowly above the 50% threshold under many scenarios, though it softened after critical messaging or when a nine-year sunset was introduced.
Assistant City Manager (on Zoom) provided staff revenue estimates: “For the 0.375% sales tax, our estimate is $4,500,000 annually.” Council members said the numbers were close enough to warrant further work on ballot language, outreach and legal review. Interim city manager Lou told the council it is a difficult policy choice: “It’s a difficult decision when you’re considering taxes,” and emphasized the need for clear accountability language and voter education.
Council members ran a consensus exercise. The majority supported staff moving forward on the 0.375¢ sales tax with a nine-year sunset (five council members indicated yes in the exercise). The council also asked staff to further evaluate a parking tax (several council members supported exploring rates; staff estimated roughly $450,000 per 5% of private-parking tax) and a narrowly scoped major-attractions admissions tax; the council agreed to hold off on a vacant-home tax until pending litigation in other jurisdictions clears and the city attorney can advise on constitutional and statutory risks.
The polling highlighted accountability provisions (annual independent audits, public disclosure and local spending requirements) and emergency-services preservation as the clearest motivators for voters. The consultant cautioned that support clustered near the 50% threshold and recommended more education and messaging work before any final ballot placement.
Next steps: staff will draft ballot language and revenue estimates, pursue legal review for the admissions and vacant-home options, and return with drafts and budget implications; the clerk identified March 3 as a deadline for adopting ballot language to make a June ballot.
Votes and next procedural steps: the council’s consensus exercise does not itself place measures on the ballot; any measure placed on a June ballot will require council action (and, for June, a supermajority vote to declare a fiscal emergency and place the tax). The council signaled a preference to proceed with drafting and more analysis rather than an immediate placement decision.
