How Three North County Cities Managed to Pass Sales Tax Measures 

The new year is approaching, and so is the implementation of three North County sales tax measures approved by voters in November. 

San Marcos, Escondido, Oceanside and Encinitas all had sales tax measures on their ballots this past election, but only three of the four were approved by voters. Voice of San Diego previously reported that Encinitas’ measure likely failed because of residents’ overall distrust in the city’s leadership. 

The other three measures, though, passed by wide margins. That’s likely because of residents’ trust in the elected officials who proposed them, their confidence that the new sales tax revenue is both necessary and will be spent wisely, and the effective communication by city leaders about the critical need for the money. 

San Marcos 

Voters in San Marcos approved their sales tax measure by more than 60 percent. A somewhat surprising outcome for the small city that, for decades, had a lot more registered Republicans than Democrats. 

In general, Democrats are more likely to approve sales tax increases, and San Marcos currently has around 21,400 registered Democrats and roughly 16,800 Republicans. But for much of the city’s history, its political leanings used to favor Republicans by a lot. That started to shift around 2018, according to voter registration records. 

However, the overall perception that San Marcos is a more conservative city still lingers, especially because residents elected Republicans to four out of the five City Council seats. 

Councilmember Ed Musgrove told Voice that councilmembers make an effort to leave party politics out of their decision making, which, he said, residents pick up on and has helped to build trust. 

“I think there’s just an understanding that with our elected councilmembers, that we work for our residents,” Musgrove said. “Even talking to people who have very strong feelings about Sacramento and Washington – when you talk to them about the city of San Marcos, they say, ‘oh, but you guys are doing a fine job.’” 

That trust in the council, coupled with the need for more money to maintain residents’ quality of life, likely helped get the measure over the finish line. 

Measure Q, a one-percent sales tax increase that’s projected to bring in an estimated $20 million in yearly revenue, is supposed to help ease the city’s budget deficit. The city had to dip into its reserves to close a $3.8 million budget gap last year and had to cut vacant staff positions to balance this year’s budget.  

“I think the community understood that some of the realities are we will be cutting back on services and that would be noticed,” Musgrove said. “Things like street sweeping, road repairs, sidewalks, landscaping, little things that after a while you start looking at and saying, ‘wow, it’s starting to really look a little uncared for,’ and that’s not what we want.” 

The measure was supported by the San Diego County Taxpayers Association, the San Marcos Firefighters Association, the city’s Chamber of Commerce and more. 

Escondido 

In Escondido, the sales tax measure’s success was largely due to the community’s deep understanding of how badly the city needed more money, and city leaders’ ability to effectively communicate that need. 

Almost 62 percent of voters approved Measure I, a one-percent sales tax increase that will expire after 20 years. It’s projected to bring in around $28 million each year in revenue. 

The measure started out as a citizen’s initiative that quickly gained traction and reportedly received more than 12,000 signatures. However, due to delays in the signature verifying process, the City Council unanimously voted to place the measure on the ballot themselves in an effort to respect residents’ wishes.  

The city has an ongoing structural budget deficit that’s projected to reach an average of $18 million each year over the next 20 years. And that deficit has already taken a significant toll on the city.  

To balance past city budgets, the city has had to defer maintenance on city facilities and parks, eliminate vacant staff positions, put off critical infrastructure needs, reduce or cut funding to some city programs and more.   

Voice of San Diego previously reported that Escondido has around $128 million in backlogged maintenance and public works improvements; multiple city departments are understaffed; and the futures of the California Center for the Arts, Escondido, the Escondido Public Library and other community programs are at risk due to lack of funding.  

According to its website, the city has had to declare two local emergency proclamations this past year to fix aging infrastructure that failed, costing nearly $13 million.   

City staff weren’t shy about consistently telling residents about the city’s need for new revenue, and fast. And year after year, residents and city departments started to see and feel the impact. 

The measure received support from the San Diego County Taxpayers Association, the Escondido Firefighters Association, the Escondido Police Officers Association, the Escondido Chamber of Commerce and even the city’s mayor, Dane White, who is typically “anti-tax.” 

In a review of Escondido’s proposed sales tax measure, the San Diego County Taxpayers Association warned that continuing to defer maintenance can have long-term negative impacts that could result in people leaving the city.  

Well, the message hit home for residents. Despite rejecting a similar tax measure in 2022, voters in Escondido overwhelmingly supported Measure I with the understanding that the city needs the money. 

Oceanside 

In Oceanside, residents approved Measure X, which was the only extension of the lot. It asked residents to extend an existing 0.5-percent sales tax for 10 more years, and almost 70 percent voted in favor of it. 

Voters first approved Measure X back in 2018, raising the city’s sales tax rate from 7.75 percent to 8.25 percent, but it was set to expire in 2026. 

Voice of San Diego previously reported that the measure had generated roughly $100 million for Oceanside as of May of this year. According to financial documents, the city has so far kept its original promise to voters regarding how the revenue would be spent. 

The funds have been used to improve public safety services, enhance the city’s infrastructure and invest in more homeless outreach and services – all priorities voters supported in 2018. This track record likely helped build trust among residents and made it easier for voters to approve it again.