Early results show Measure G, Napa’s 1-cent sales tax measure, is on the verge of passage

Napa residents may soon pay an extra penny for every dollar spent on taxable items in the city, as early results show that Measure G — which would increase the tax from 7.75% to 8.75% — is about to is to be adopted.

Election night results show that while 29% of the total potential votes were counted, 57% voted in favor of the measure, which requires a simple majority.

The next round of voting is expected on Friday afternoon.

The Press Democrat will rely on information from election officials before determining whether the measure passes or fails, as not everyone who received a ballot will have voted.

Napa City Councilwoman Mary Luros told The Press Democrat late Tuesday that she is cautiously optimistic the measure will pass. People are struggling with rising costs, she said, so it means a lot to her that people are willing to invest in the community.

“I’m very excited about the opportunities we have in front of us,” Luros said. “We don’t have to make the cuts we should make, and there are exciting decisions about the future that will make us the world-class venue we should be.”

Napa Mayor Scott Sedgley said he was grateful that voters seemed willing to pass the measure. He said if this goes through, the city may be able to shift the hotel tax to one-time expenses to improve the city, rather than depending on it for business revenue.

“The measure is so important to providing the essential services we are expected to provide,” Sedgley said

However, opponents of the tax, including the Napa County Taxpayers Association, have warned that the tax is a permanent increase, without a built-in date for when it would end or guaranteeing where the revenue would go.

Napans currently pay a 7.75% sales tax, which does not include things like utilities, housing, groceries and prescription medications. Most of that — 7.25% — is mandated by the state, with the remaining 0.5% coming from a voter-approved road repair measure. The city currently receives 1% of the total, while 0.25% goes to Napa County.

Increasing the rate by another 1% would generate an estimated $22 million annually for the city’s general fund, according to city estimates.

The money would go to various public services the city provides, but the measure does not set aside the funds for a specific purpose.

City leaders have said the increase is necessary because of projected budget shortfalls in coming years. In addition, the sales tax increase would allow the city to be less dependent on the sometimes volatile tax revenues from hotel rooms, which make up about a quarter of city revenues.

Napa’s sales tax is also the lowest in the region, along with American Canyon, Yountville and Calistoga. An additional 1% would still be lower than nearby areas such as Vallejo, Sonoma and Santa Rosa.

You can reach staff writer Edward Booth at 707-521-5281 or [email protected].