Hercules voters: Here’s what you need to know about Measure P, a sales tax to raise money for basic services.

Hercules voters will decide Tuesday whether to approve a 1% sales tax to pay for basic city services such as police, parks, roads, and water quality and to address a growing budget gap.  

Mayor Chris Kelley says Measure P would generate $4 million annually to help close a budget deficit that is expected to be Hercules voters will decide Tuesday whether to raise a 1% sales tax to pay for basic city services such as police, parks, roads, and water quality and address a growing budget gap.  

Mayor Chris Kelley says Measure P would generate $4 million annually to help close a budget deficit that’s estimated to be $21 million in fiscal year 2028-2029 and noted the city has no backup plan if voters reject the measure. 

If the measure passes, sales and transaction taxes in Hercules would rise from 9.25% to 10.25%.

Business organizations and the Contra Costa Taxpayers Association oppose the measure, saying the sales tax would be burdensome for business owners and Hercules residents. The association argued on its Facebook page that the city measure, combined with a regional measure for a half-cent sales tax to support public transportation, would be bad for consumers. 

“If both pass, Hercules shoppers will pay 10.75% on nearly everything they buy, among the highest rates anywhere in California,” the association wrote. 

The Prop 13 problem

Measure P funding would be used to repair the city’s deteriorating roads, provide resources for 911 operators so they can respond to calls faster, and retain police officers. In July, Hercules City Council voted 4-1 to put Measure P on the ballot. Under state law, cities need voter approval to raise taxes. Measure P requires a simple majority to pass. 

“It will maintain our fiscal sustainability so that we won’t have those deficits, and it will also keep our funding here in the city that won’t go anywhere else,” Kelley said.

Hercules, like other California cities, is hampered by how much property tax revenue it gets since the passage in 1978 of state Proposition 13, which limits the property tax rate to 1% of assessed value at the time of purchase and restricts annual tax increases to no more than 2% until the property is sold. It disproportionately affects smaller cities, Kelley said, noting that Hercules receives 5.5% from property taxes, compared to Richmond, which gets 20%. 

“We have to look for other ways to raise money because we have to increase expenses all of the time, and things just go up with the cost of living,” he said. 

Jeae Mahal, a Hercules resident who supports the measure, said she wants the city to have enough money to “implement more security and cleanliness” and to provide “resources for people to be protected and safe.”

Mike Hernandez, a Hercules resident and Contra Costa Taxpayers Association member, said the city should find other ways to generate revenue besides raising taxes, such as increasing service fees for parks. 

“If the city provides a service, there should be a citizen who should bear some of the cost, and it should be incremental,” Hernandez said. 

He is concerned that Measure P would drive business away and make living much less affordable, especially given the high cost of housing. He noted the sales tax could increase in the future. 

“People are working day to day,” Hernandez said. “People are going to buy school supplies for their kids, groceries for their family, etc., which is just going to be more costly.”  

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