ENDORSE: Manhattan Beach Sales Tax (Measure MMB)

George HW Bush is famous for using the phrase, “Read my lips: no new taxes” to move his campaign forward. Increasing tax rates is an unpopular policy, especially here in California where we all feel over-taxed already. However, sometimes new taxes can work in our favor, especially if we are leaving money on the table by NOT raising them.

• Measure MMB raises taxes by one-half cent (50 cents for every $100 purchased). Groceries, medicine, and many other essential items are excluded.

• It’s estimated Measure MMB will increase our annual tax revenue by $5.3 million, with $3.2 million coming from visitors, not residents.

• Approximately 61% of sales tax revenue collected in Manhattan Beach is paid by visitors shopping in Manhattan Beach. In fact, we have one of the highest non-resident percentages of revenue in the state.

• Manhattan Beach would keep ALL of this revenue locally. Currently, we don’t keep much of our sales taxes. LA County charges a 9.5% sales tax, with 6.5% going to the state, 2% going to the County, and 1% going to us.

• Manhattan Beach’s sales tax rate is similar to some neighboring cities, but 0.5% to 0.75% lower than several others. We are therefore leaving money on the table compared to some of our neighbors.

• It’s also a way to collect more taxes from top producers such as Apple, Barnes & Noble, and Chevron.

• This revenue would fund improvements in infrastructure and public safety (including widening sidewalks for outdoor dining).

• While not currently on the table, there is a risk that if we don’t act now, LA County will raise our sales tax to the max level and keep the funding.