Half-cent Sales Tax Hike on Cathedral City Ballot in November

CATTHEDRAL CITY — Residents in this community will decide on Nov. 5 whether to increase the city sales tax by a half cent. The sales tax in Cathedral City is currently 8.75%, which includes the 7.25% statewide sales tax, 0.5% county tax and 1% city tax.

If the measure is approved, Cathedral City’s sales tax would become 9.25%. It, along with Palm Springs, would be the highest rate in Riverside County, Ryan Hunt, Communication and Events Manager.

The tax is a general fund tax, so the City Council will appropriate it each year with the budget. It is expected to generate about $5 million, which is locally controlled and not subject to takeaways by the state or other levels of government.

If approved, the City should see money by August 2025 at the latest effective for the quarter of April 1 – June 30, 2025. There is no built-in sunset clause. It is effective until ended by voters, Hunt said.

How will the money be used? Here’s the current plan, according to Hunt, is the following:

  • The Cathedral City Fire Department will be able to staff and place into service a fourth ambulance to maintain response times to medical emergencies even as calls for service increase.
  • Additional money will be available for paving and maintaining neighborhood streets.
  • Money will be available to allow Cathedral City to become a part of the Desert Recreation District providing parks and recreation services to residents and helping keep parks safe and secure.

The money raised through Measure W will be subject to annual outside audit and strict oversight by a citizen advisory committee.

The sales tax hike proposal should come as little surprise to residents.

In 2022, after the defeat of Measure K, McClendon said he will be meeting with the DRD, the City Council, and members of the community to discuss next steps. He wants to explore ways of getting the same benefits from DRDDD but perhaps via a different route. “There is always a way,” he said. “The voters sent us a message.”

“This is the alternative,” Hunt told Uken Report.

The City Manager appointed a resident study committee to review unfunded needs in the community, Hunt said. This committee represented a cross section of residents of Cathedral City and 11 individuals participated by attending at least one meeting. Meetings with this group were held October 2023 through January 2024. The final meeting was held on January 11, 2024. The agenda included a review of the previous presentations and was followed by a discussion of ideas from committee members for addressing the identified funding gaps. Discussion included the applicability and limitations of grant funding, public private partnerships, and single-purpose tax measures. Ultimately, the committee members coalesced around recommending a general purpose, half-cent sales tax (transaction and use tax) to the City Council.