California shoppers in one quiet Bay Area city could soon be hit with a jaw-dropping sales tax that critics say is enough to send bargain hunters speeding across city lines.
Residents of Hercules, a waterfront community of about 26,000 people in Contra Costa County, will vote this November on a measure to slap an additional 1% sales tax on purchases.
If it passes alongside a separate countywide half-cent transit tax, the city’s total sales tax rate would skyrocket to a staggering 10.75%.
That’s a number taxpayer advocates say could make Hercules one of the priciest places in California to swipe a credit card.
However, the Hercules City Council insist they have little choice. The officials voted 4-1 on Tuesday to approve an urgency ordinance, which would put the proposed 1% sales tax on the ballot in November, per the Contra Costa Pulse.
“There’s a lot of needs for funding and, as a public entity, we have very limited means to try and raise revenue,” Mayor Chris Kelley said while urging the City Council to let voters decide the measure. “Otherwise we’re going to be kind of strapped.”
Interim City Manager Patrick Tang painted a bleak financial picture, saying city revenues are only “barely adequate” to maintain current services and warning that budget deficits are expected within the next few years as costs continue to climb.
Tang also acknowledged Hercules’ retail scene simply isn’t robust enough to generate the money city leaders say they need. Officials argued that some of the added tax would be paid by out-of-town shoppers, pointing to businesses like the local Home Depot that attract customers from neighboring communities.
But critics aren’t buying it.
Marc Joffe, president of the Contra Costa Taxpayers Association, sounded the alarm on X after the proposal advanced.
“A third Contra Costa city is now looking for a sales tax hike on the November ballot. Hercules is promoting a 1% tax in addition to the 0.5% transit sales tax. If both pass, total sales tax in Hercules will soar to 10.75%. DM me if you live in Hercules and oppose this.”
The post unleashed a flood of angry reactions.
“Absolutely needed within corrupt tax & waste California. Thank you for fighting the good fight!” one supporter wrote.
Another fumed, “Sounds like somebody needs to clean out the stables at Herc City Hall.”
A third blasted the proposal, writing, “God forbid we have one single democrat who will look into FRAUD WASTE AND ABUSE. You prefer higher taxes. Unlike finding coins in your couch, this will be catastrophic for CA: around $500 BILLION in fraud, waste & abuse waiting to be found.”
The backlash echoes an earlier quip from Joffe, who suggested frustrated shoppers could simply “shop in El Sobrante or some other unincorporated pocket” rather than paying the higher tax.
According to the Contra Costa Pulse, the proposed increase comes as Hercules voters are already being asked to weigh multiple tax measures this fall, including a parcel tax for schools. They’ll also vote with the rest of Contra Costa County on a separate half-cent sales tax aimed at propping up struggling public transit agencies.
Meanwhile, neighboring Richmond and San Pablo are asking voters to approve tax increases of their own, fueling criticism that Bay Area cities are increasingly turning to taxpayers instead of trimming government spending.
If both tax measures are approved, every $100 spent on taxable goods in Hercules would carry $10.75 in sales tax, a figure opponents say could drive shoppers, and their dollars, right out of town.
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