Lodi City Council reviews budget, may increase sales tax
LODI — The City of Lodi is looking at possible tax hikes to try to balance the books as a possible $1 million shortfall is forecasted each year for the next five years.
One option being presented to the city council during Wednesday night's special meeting is increasing the city's current sales tax from 8.25% to potentially 8.75%.
"Well, I'm concerned," Lodi resident Larry Estavan said. "You know, it's nice living here, and I wouldn't want to see it get any worse or more expensive."
Estavan explained that he'll maybe "eat out less or be more frugal in my grocery shopping."
This is a move that would bring in more than $8 million to the local economy.
"I'm not too fond of that just because things are pretty expensive as it is," said local business owner Adrian Torrez, manager of The Hangout on North School Street in downtown Lodi.
Torrez, along with some other business owners, is concerned this increase will cause bigger problems.
"I'd hate to have to increase. My mom or my older brother, they own [The Hangout]. I'd hate for them to have to do that," he said. "I don't think they would, but it just makes it harder."
Other business owners look at this increase in a positive light.
"It's great," said Kay Claxton, owner and operator of French at Heart, also on North School Street. "If it's going to be used to help downtown, I think it's great. We haven't had a price increase in a long time."
Where the money from this tax increase will go is unknown at this point, according to the city.
For Torrez, he knows that regardless of what happens, his customers will help him through.
"Our customers are pretty loyal," he said. "I think it would be the most part OK, but I think that the higher-ups, higher than me, the people that have control over that, I think they wouldn't want to do that."
Besides the sales tax, another option being presented to the city council is to reimpose the Business License Tax. They could also decide to increase the city's Transient Occupancy Tax.
The council did not vote on increasing the sales tax on Wednesday. It was just reviewing the budget.
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