Measure M will ask voters to decide on whether a 1% local sales tax, or 1 cent per dollar, should be added to retail sales prices for the San Clemente Natural Hazards Initiative.
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Half of the sales tax revenue would be used for a city “beach protection fund,” with the other half going toward “fire protection and wildfire preparedness.”
The tax on retail sales within the city is currently 7.75%, which includes the 7.25% collected statewide and the half cent collected in Orange County for transportation needs. If approved, the total sales tax rate within the city would increase to 8.75%.
The city estimates a new 1% sales tax would result in about $15 million annually for 10 years, and could be extended for another 10 years by another majority vote in eight years.
Those in favor of Measure M argue San Clemente’s beaches are disappearing because of erosion due to the natural sand supply being cut off. Also, homes east of the 5 Freeway are within very high fire hazard zones, which can increase insurance costs and cancel policies and prevention efforts could help that, supporters said in a ballot argument in favor of the measure.
“This citizen-led measure provides a locally controlled solution to address two growing natural hazards threatening San Clemente’s safety, economy, and quality of life: beach erosion and wildfire risk,” the argument says. “Dedicated funding comes from a 1% sales tax for 10 years, with visitors contributing, and does not apply to groceries or prescriptions.”
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Supporters also said having local funds dedicated to these issues would allow San Clemente to compete for state and federal funding that require local matching dollars.
The ballot argument penned against the measure says an 8.75% tax would make San Clemente the highest-taxed in South Orange County.
“It’s not ‘just a penny.’ It would raise about $150,000,000 over 10 years, largely paid by residents,” the opposition argument says. “Families would pay more for gas, cars, dining, and everyday purchases.”
Opponents also argue that the city already pays about $12 million each year for Orange County Fire Authority services and there is no safeguard in the measure to keep the new tax revenue from being used to pay that cost.
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Measure M would need a simple majority of votes in favor to pass.