Berkeley Sales Tax Hike Takes Effect

Berkeley CA

02 July, 2021

12:46 PM

Description

ALAMEDA COUNTY, CA — Sales tax rates increased a percentage point in Alameda County on Thursday, bringing the countywide tax rate to 10.25 percent from 9.25 percent. That's higher than any Golden State county. The sales tax rate is even higher in a handful of other Alameda County cities, which have already given the OK to higher tax rates. The tax rate in most of those cities is now 10.75 percent. The hike came after voters passed two 0.5 percent tax hikes in 2020: Measure C in March and Measure W in November. Through Measure C, the county sought to authorize an additional 0.5 percent sales tax for 20 years to raise money for the Children's Health and Child Care for Alameda County Fund. It passed with 64 percent of the vote. Measure W instituted a 0.5 percent sales tax for 10 years to generate an estimated $150 million annually for housing and services to address homelessness in the county. Supporters of Measure W eeked out a win with the narrowest of margins: 50.09 percent of the vote. Critics said sales taxes are regressive taxes, meaning they hit the lowest-income earners the hardest. Supporters argued that the revenues generated would provide much-needed funding for critical programs to improve the quality of life in Alameda County. Elsewhere in the Bay Area, San Mateo County sales tax rates increased to 9.375 percent from 9.25 percent; Santa Clara County saw an increase to 9.125 percent from 9 percent; and San Francisco saw an increase to 8.625 percent from 8.5 percent. View a full list of California cities and counties that underwent a sales tax increase July 1.