Initially circulated by a citizen's group as an initiative measure titled the "Escondido Community Investment Initiative," Measure "I" was placed on the ballot by the Escondido City Council pursuant to Resolution No. 2024-89. This Measure would amend the Escondido Municipal Code ("Code") to add Chapter 25, Article 2, Division 2, Sections 25-33.1 through 25-33.14, enacting a local transaction and use (sales) tax ("Tax") on non-exempt purchases made within the City of Escondido ("City") to be administered by the California Department of Tax and Fee Administration ("CDTFA").
If approved by Escondido voters, this Measure would authorize a one-cent sales tax increase resulting in an additional one-cent for every dollar spent on taxable goods. If adopted, the imposition of the Tax would not start until early 2025, more than 110 days after the approval by the voters ("Operative Date"), unless a later Operative Date becomes effective. The Measure excludes taxation on any sales or use taxes already imposed by the State of California; by any city or county pursuant to the Bradley-Bums Uniform Local Sales and Use Tax Law; and, the amount of any state-administered transactions or use tax. Other exemptions and exceptions are specifically provided in the Measure. Items that are exempt from sales tax include groceries, prescription medicine, and certain medical devices.
The authority to levy the Tax imposed by this Measure will expire twenty years after the Operative Date. The Escondido Director of Finance has determined that based on estimated future local sales tax receipts, the Measure will provide approximately twenty-eight million dollars annually to the City's general fund.
The City Council may not amend the Code, without further voter approval, to terminate or renew the Tax; increase or decrease the Tax rate; revise the methodology for calculating the Tax, such that a tax increase would result; or, impose the Tax on transactions and uses not previously subject to the Tax, unless such an amendment would occur automatically by operation of law.
The Measure establishes a five-member Citizen’s Oversight Committee ("Committee") and mandates its member appointment process, including a residency requirement; length and expiration of member terms; filling of vacancies; public meeting rules and requirements compliant with the state open-meeting rules; and, identifies its powers and duties. The Committee is charged with reviewing the revenue collected from the Tax and producing a yearly audit report on the use of the Tax revenues. Such audit reports will be public records and made available as required by state law.
Source: Measure I Impartial Analysis
