14 MONTEREY COUNTY WEEKLY APRIL 16-22, 2026 www.montereycountynow.com In something akin to finding a forgotten $20 bill in a coat pocket, cities are discovering that a small piece of the sales tax pie has been sitting unnoticed—until recently. Someone figured out that a 0.375 percentage, or three-eighths of a penny of sales tax, has been available for over a decade for local jurisdictions to claim, as long as voters approve. The City of Monterey already has Measure D on the June 2 ballot asking voters to approve a 0.375-percent sales tax increase. Pacific Grove officials indicated they will put its own measure on the November ballot and Carmel is considering a similar measure. All three cities currently levy a 9.25 percent sales tax—0.375 percent would increase their sales taxes to 9.625 percent. The source of this scramble to capture a 0.375 percent increase goes back to 2015 and is tied up in a state cap on how much total jurisdictions can levy in sales tax. By law, cities can only levy up to 2 percent over the state’s base sales tax, which is 7.25 percent, which means cities can levy no more than 9.25 percent. Back in 2015, the Transportation Agency for Monterey County was proposing a countywide sales tax of 0.375, but it was blocked because Greenfield was also proposing a sales tax increase—both taxes would result in pushing the percentage Greenfield collected to over 9.25 percent. TAMC turned to the State Legislature and won an exception to the cap, with Senate Bill 705 paving the way for Measure X in 2016, which voters approved. By then, Greenfield’s measure had already won in 2015; after Measure X passed, the city was collecting 9.5-percent in sales tax, with 0.375 of that going to TAMC. For reasons that are unclear, other local cities charging 9.25 percent didn’t catch on, until recently, that they could ask voters for a 0.375-cent increase above the state cap thanks to the legislative carveout awarded to TAMC. “Everybody thought the tax was maximized,” Jayme Fields, Carmel’s finance manager, told the Carmel City Council on April 6, noting other cities are headed toward similar ballot measures. “Now that we all know about it, we all know about it.” Carmel voters approved Measure C in 2020, a 1.5-percent sales tax increase. Fields says that had the city realized in 2020 that the additional sliver of tax was available, officials would have asked for a 1.8-percent increase instead. She warned the council that the 0.375 percent could get “scooped up” by another agency, blocking the cities from asking for the increase. In other words, if another jurisdiction, such as the County of Monterey or MontereySalinas Transit, asked for that 0.375 percent, cities would find themselves maxed out. If passed, Monterey’s Measure D, titled the “Preserve Essential City Services Measure,” could bring in $4.5 million annually for the cash-strapped city over nine years when it expires. The city is holding three town hall meetings to explain the measure to residents at 6pm on April 22, 27 and 28 at different locations. Brass Ring Cities pin hopes on a sliver of sales tax previously thought unavailable to them, despite a legislative carveout a decade ago. By Pam Marino Carmel is considering a sales tax measure in November, in part to pay for deferred maintenance. The Carmel Police Station (above) is in need of either a major upgrade or complete replacement. NEWS “Everybody thought the tax was maximized.” NIC COURY Voted Monterey County’s Best Antique Shop ’25 ♦ 3 Card Poker ♠ Century 21st No Bust Black Jack ♣ Texas Hold’em ♥ FULL BAR! BLACKJACK BONUS POINTS PAYS UP TO $20,000 SMALL TOWN BIG PAYOUTS! 1-800-Gambler • GEAR-000383, GEAR-000376, GEAR-000375 The Marina Club Casino ensures the safety and security of all guests and team members at all times, while providing exceptional service. 204 Carmel Ave. Marina 831-384-0925 casinomonterey.com ♠ ♣ ♥ ♦ Just minutes from Downtown Monterey Where Monterey Comes To Play
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