On the heels of a recent vote by the Gilroy Chamber of Commerce’s Board of Directors to oppose the half-cent general-purpose sales tax measure, many business owners are expressing support of the decision.
“We’ve gotten some feedback that people are pleased the chamber took a stand on the measure and opposed,” said Chamber President and CEO Mark Turner. “We’ve been observing the Dispatch’s polls and seeing, to some degree, confirmation of the position the board took.”
After receiving approximately 200 responses to a recent survey of chamber members since the council’s decision, businesses gave the organization “clear direction” about which stand to take, Turner said.
“It shows they’re a leader in the community and they’re not afraid to stand up to the city,” said Eric Howard, owner of Bruce’s Tires. “Most chambers, I think, are afraid to stand up to cities. It’s great they did that and it will enhance their position with the business community.”
A majority of chamber members who responded to the survey took issue with the lack of citizen oversight on how any potential revenue is used, according to Turner. As it stands now, all potential tax revenue can be used for any general purposes. Expenditures using the sales tax revenue would be audited annually, along with the city’s general fund.
Mayor Don Gage suggested the measure last year, either in the form of a bond or tax measure, as a way to specifically fund capital improvement projects like fixing the condemned buildings downtown and repairing streets and sidewalks. The sales tax increase would also help pay for police and fire services and equipment, which already account for approximately 80 percent of the city’s total expenditures.
“If it’s not earmarked and locked in, it can be spent on anything,” Howard said. “If you’re not going to earmark it, then don’t tell people that’s what you’re doing—that’s deceptive. Tell them it’s going to the general fund.”
At the Aug. 4 meeting where the council voted to place the measure on the Nov. 4 ballot, chamber member Michael Sanchez expressed concern about the lack of accountability.
As a general-purpose sales tax measure, revenue cannot be earmarked for specific projects per state law—and voters must approve it by a simple majority vote. If the Council designated certain projects revenue would fund, the approval threshold jumps to a two-thirds majority.
If the measure is approved in November, Gilroy’s sales tax would rise from 8.75 to 9.25 percent—the highest sales tax in Santa Clara County—and it would sunset in 15 years.
“I’m a little schizophrenic on this measure and it’s because of the accountability factor,” Sanchez said. “I feel confident saying I can trust the people who presently serve on the council, but 15 years out, I’d be a fool to say I can trust them. A measure that’s tied to a lack of accountability is a blank check.”
On the other hand, Leonard Harrington, owner of Gilroy Nissan and Hyundai, leaned toward support of the measure.
“I am a conservative and a small businessman and I have never voted for anything like this in my life,” he said. “The reason I have not voted for a tax increase is because, in general, the government is not good a steward of our money. In this case, I don’t think we can lump the City Council in the same box as the state and federal government.”
Howard is organizing opposition to the sales tax measure, and has encountered many who stand with him.
“The city takes taxpayer money to tell the taxpayers why they should pay more in sales tax,” he said, noting that the city spent more than $150,000 to research the measure and place it on the ballot. “We have a loose group of people who are fighting this. They’re using our money against us and we’ve basically got to scramble money up to fight this. We’re fighting our own money.”
“Ultimately, the consumers are going to be the ones who pay,” he added. “It just puts more pressure on businesses in Gilroy. You’ll see a lot of businesses open up in Morgan Hill that could have opened up in Gilroy—and Gilroy has been traditionally known as a business friendly city.”
But if the city involved the business community from the beginning on what form the measure would take, whether as a bond for capital improvement projects or a tax for street and sidewalk repair, for example, Howard said he wouldn’t be surprised to see more support.
“The city didn’t involve the business community; they just came out and said ‘this is what we’re doing.’ I think through a partnership something could have been done, and if they were to put it in as a bond measure, they might have gotten a lot of people behind it.”
As of press time, the Chamber’s Board of Directors has not scheduled a special meeting to discuss whether the chamber will be more active in campaigning against the measure, according to Turner.
“That will be an ongoing discussion the board will have,” he added.
“We’ve gotten some feedback that people are pleased the Chamber took a stand on the measure and opposed.”
-Mark Turner, president and CEO of the Gilroy Chamber of Commerce
