Clear Lake council authorizes mayor to oppose proposed 50/50 split of local sales tax

Clear Lake’s City Council voted unanimously to authorize the mayor to transmit a formal letter opposing a proposal by a League of California Cities working group to reallocate Bradley‑Burns local sales tax revenue on a 50/50 basis between point‑of‑sale and destination jurisdictions.

Staff described the current Bradley‑Burns uniform local sales and use tax law, noting the 1% local portion is presently allocated to the point‑of‑sale jurisdiction (or where a warehouse/fulfillment center is located) and that the proposed change would split revenue, with 50% going to the destination jurisdiction where the buyer resides. The staff report argued the proposal would disproportionately hurt small cities with regional retail hubs such as Clear Lake because the city would remain responsible for service costs while losing local revenue.

City Manager Flora said estimates indicate Clear Lake could lose approximately 10% of its sales tax revenue—"most likely over $200,000 a year," the staff report stated—and counsel recommended joining other jurisdictions in opposition. A council motion to authorize the letter was moved, seconded and passed unanimously.

The letter will be transmitted to the League of California Cities to register Clear Lake’s opposition; staff said they would coordinate with the city manager and the mayor for transmittal.