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Fortuna council places 0.75-cent transactions tax on November ballot to shore up services
Summary
The Fortuna City Council introduced an ordinance and adopted a resolution to put a 0.75-cent transactions-and-use tax before voters on Nov. 3, 2026, citing declining sales and occupancy tax revenues and rising insurance costs; the measure would fund police staffing, street repairs, senior and youth programs and require independent audits and local oversight.
The Fortuna City Council on May 4 voted to place a 0.75-cent transactions-and-use tax measure on the Nov. 3, 2026, ballot, moving to introduce Ordinance 2026-785 and adopt Resolution 2026-12 that begin the election process.
City staff told the council the proposed "Fortuna Essential Services Funding Measure" would levy three-quarters of one cent on taxable purchases in the city and is designed to address a structural deficit driven by flat or declining sales and transient occupancy tax revenues alongside rising liability insurance premiums. Staff said the measure is estimated to generate roughly $1.8 million annually and would require independent financial audits and community oversight, with all revenues restricted to use within Fortuna.
The presentation noted the city commissioned EMC Research for polling conducted Feb. 23–Mar. 5, 2026, that informed the tested ballot language. The draft measure’s stated purposes include protecting public safety and restoring police staffing, repairing streets and potholes, funding programs for seniors and youth, and maintaining parks.
During public comment, a resident sought clarity on how the tax is assessed; a council member explained the 0.75-cent figure applies per $100 of taxable purchases and does not apply to groceries or prescriptions. Another commenter asked whether oversight would use the existing Measure E committee; staff said the Measure E committee would provide that oversight unless the council specifies otherwise.
Council members discussed the policy’s framing. One council member said the ballot language is optimistic and suggested the mayor’s materials also describe potential service reductions if voters reject the measure. After discussion the council voted 4–0 to introduce the ordinance and adopt the resolution directing the city attorney to prepare an impartial analysis and setting deadlines for arguments and rebuttals.
The ordinance authorizes the California Department of Tax and Fee Administration to administer the tax, subject to a majority of Fortuna voters approving the measure. If approved, the tax would begin collection April 2027 and overlap with an existing Measure E, which runs through 2033. The council’s actions formally place the question before voters and begin election procedural steps; the city will publish the impartial analysis and argument deadlines under state election law.
