Sales Tax Mapping
By Alex Myrwold
The next time you buy a big-ticket item, driving a extra few miles may save you some money, depending on the city where you live.
Within the neighboring cities of south San Diego County, the sales tax rate varies from 8.75 percent to 9.75. While 1 percent might not seem like much, the savings would be $22 for a $2,200 television set bought in Santee or San Diego instead of El Cajon or National City.
That could add up to hundreds of dollars for a business outfitting its offices with computers or a family remodeling a living room.
Allan Lewis, a financial and tax adviser and La Mesa resident, said he drove to Santee to buy his Sony TV. “It was an extra five-minute drive and I saved 20 dollars,” he said.
Jennifer Stirling, a student at San Diego State University, also said she avoids cities like La Mesa and El Cajon where the sales tax is higher. “The sales tax is ridiculous,” said Stirling, “Why can’t all the cities just be the same across the state?”
The California legislature approved 1 percent state-wide sales tax increase that took effect April 1, 2009, to alleviate a $42 billion deficit.
Because of shortfalls in local budgets, voters in El Cajon and National City’s further increased the sales tax in those cities to 9.75 percent while La Mesa residents approved an increase to 9.5 percent. Other cities, including Santee, chose not to follow suit.
“Santee did not raise the sales tax because we are a low tax, balanced budget, conservative city,” Santee mayor Randy Voepel wrote in an e-mail. “Taxes are simply a re-distribution of wealth and Santee only takes what we must to preserve public order.”
They also may be benefiting from the increase in neighboring cities. Now, shoppers can go to Santee, San Diego, or Chula Vista to save a 1 percent in sales tax.
Lewis said although people may travel across city lines for expensive items, he predicts the city will more than make up for the lost revenue with all the small items.
“When you’re getting to a two, three, or four percent difference within city limits, then I think it will hurt the city,” he said, “but with 1 percent, I don’t think the general population thinks about it.”
Smaller stores may not see much of a difference, but stores specializing in big-ticket electronics might. Nathan Burd, a manager at a Best Buy in Santee, said he’s seen a small increase in business from people who live in cities with higher tax rates.
“We definitely welcome it,” he said.
