Oceanside council to put temporary 1/2-cent sales tax on November ballot to fund major infrastructure

Oceanside — The City Council voted unanimously to place a proposed temporary 1/2-cent general transactions and use sales tax measure on the November 3, 2026 ballot, a measure staff says would generate an estimated $20 million per year if approved.

Assistant City Manager Michael Gossman told the council the measure would "provide locally controlled funding for critical infrastructure projects" and clarified it would be a temporary, 10-year levy that sunsets and would be tracked in a separate fund with annual independent audits and a citizens oversight committee modeled on the Measure X oversight process.

Gossman said staff would use a potential half-cent to help fund a package of capital priorities that currently lack adequate funding: a purpose-built replacement for Fire Station 8 (now in leased industrial space); a pier bridge replacement and related coastal infrastructure for beach resiliency; expanded pavement management to raise the city’s pavement condition index; and a new police headquarters to replace space now housed in a converted retail building. He noted existing set-asides and federal support but said costs have risen dramatically, citing a statewide construction-cost rise since 2019.

The presentation emphasized that staples such as groceries and prescriptions remain exempt from sales tax and that a large share of local sales tax is paid by non-residents and tourists. Gossman also said a sales-tax-funded program would use bonding to accelerate construction and that proceeds from a successful ballot measure would be restricted by the California Constitution to capital projects when bond proceeds are raised.

Public commenters split over the idea. Supporters including Save Oceanside Sand and representatives of the firefighters argued investments are needed to protect beaches, tourism revenue and emergency response capacity. Opponents warned the sales tax is regressive, asked for greater transparency on how prior Measure X dollars were spent, and urged exploring alternatives such as leveraging pension funds or more aggressive reserve management.

Several council members pressed staff on safeguards: staff committed to return with a spending plan, independent oversight structure and annual reporting if the measure is placed on the ballot. The council approved placing the measure on the ballot 5-0; the clerk will submit final language to the county Registrar of Voters, and any bonds or spending plan would be addressed in later council actions if voters approve the measure.

What’s next: If approved by voters, staff said the tax would be administered by the California Department of Tax and Fee Administration, staff would bring back a spending plan and oversight details, and the city would pursue financing to begin high-priority capital projects more quickly.

Representative quote: "This measure would bring Oceanside's sales tax to 8.75% and help fund projects such as the pier bridge and a new Fire Station 8," Gossman said during the presentation.