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September 14, 2026

How Much Sales Tax is Too Much?

If all sales taxes on Contra Costs ballots pass this year, some of our neighbors will be paying 10.75 percent extra on clothes, school supplies, gas, etc. Higher sales taxes hurt working families the hardest, and there seems to be no real limit as I discuss in a new California Globe op-ed. Meanwhile, here’s the view from one of three Contra Costa cities facing a municipal sales tax in November.

Three Tax Measures on One Hercules Ballot

Hercules voters face three separate tax measures on November 3. Measure P would raise the city's sales tax by a full percentage point, from 9.25 percent to 10.25 percent, with no expiration date. The City Council placed it on the ballot on a 4-1 vote on July 28. Because it is a general tax rather than a special tax, it needs only a simple majority, and the money can be spent on anything. The city estimates it would raise about $4 million annually.

The same ballot carries the regional transit sales tax authorized by Scott Wiener's Senate Bill 63, which adds another half a percentage point. If both pass, Hercules shoppers will pay 10.75 percent on nearly everything they buy, among the highest rates anywhere in California. Add the West Contra Costa Unified School District parcel tax renewal, which would continue a levy of 7.2 cents per square foot of building area for nine more years and raise roughly $10.2 million annually, and Hercules residents are being asked to approve three tax increases at once, before anything the state puts in front of them.

The case against Measure P is that the problem in Hercules is spending, not revenue. The city's own audited statements show General Fund spending more than doubled in a decade, from $10.2 million in 2015 to $20.7 million in 2025. State Controller data show nine city employees received more than $200,000 in wages in 2025, and that 34 public safety employees drew $5,158,622 in wages plus $1,195,041 in benefits. Hercules already collects a half-cent Measure B sales tax that was extended indefinitely and an 8 percent utility users tax continued indefinitely by Measure N. City staff nonetheless describe the retail base as too thin to fund more than basic service levels. If spending can double while service levels stay basic, the shortfall is not a revenue problem.

Sales taxes also fall hardest on the households with the least room in their budgets, and there is no shopping around them on the largest purchases. California assesses vehicle tax at the buyer's home address, so a Hercules resident buying a $50,000 car would owe $5,375 at 10.75 percent regardless of which dealership sells it.

Vote no on Measure P.

Upcoming Events

CoCoTax Lunch, September 25: Proposition 43 with Scott Kaufman, Howard Jarvis Taxpayers Association
Friday, September 25, 2026 | 11:45am – 1:15pm PDT | Denny's, 1313 Willow Pass Road, Concord

Scott Kaufman, Legislative Director of the Howard Jarvis Taxpayers Association, will discuss Proposition 43, which would raise the threshold for citizen-initiated special tax measures from a simple majority to two thirds.

The meeting will kick off with an update from Central San.

CoCoTax Lunch, October 23: November Tax Ballot Measures with Rob Gutierrez, CalTax
Friday, October 23, 2026 | 11:45am – 1:15pm PDT | Denny's, 1313 Willow Pass Road, Concord

Rob Gutierrez, President and CEO of the California Taxpayers Association, will analyze Proposition 40, the one-time 5% tax on billionaires, and Proposition 3, which would make the state's top personal income tax rates permanent.

The meeting will kick off with an update from the Contra Costa Water District.

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