COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: July 7, 2026
SUBJECT: Introduction of an Ordinance Adding Chapter 3-8B to the Santa Maria Municipal Code Imposing a Transactions and Use Tax
Description:
The City Council will consider waiving first reading and introduce an Ordinance adding Chapter 3-8B to the Santa Maria Municipal Code Imposing a Transactions and Use Tax.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Waive first reading and introduce an ordinance adding Chapter 3 -8B imposing a transactions and use tax to be administered by the Department of Tax and Fee Administration; and
2. Set said Ordinance for adoption at the next regular City Council meeting. Althoug h introduced and set for adoption, is subject to voter approval at the November 3, 2026, General Municipal Election.
BACKGROUND:
On June 2, 2026, City Council adopted Resolution No. 2026-85, calling and giving notice for the holding of a General Munici pal Election and a Special Election on Tuesday, November 3, 2026, for the Election of Certain Municipal Officers and Filling a Vacancy as Required by the Provisions of the Laws of the State of California, and for the Submission to the Voters a Question Rel ating to Adding Chapter 3-8B Imposing a Transactions and Use Tax.
On June 16, 2026, City Council adopted Resolution No. 2026-104, amending Resolution No. 2026-85, calling and giving notice for the holding of a General Municipal Election and a Special Election on Tuesday, November 3, 2026, for the Election of Certain Municipal Officers and Filling a Vacancy as Required by the Provisions of the Laws of the State of California, and for the Submission to the Voters a Question Relating to Adding Chapter 3-8B Imposing a Transactions and Use Tax, which also amended Exhibit A – proposed text of the measure ordinance language to reflect sustaining and enhancing general services, whereas Measure U remains focused on public safety.
2 DISCUSSION:
Recent polling shows t hat a large majority of residents expressed high satisfaction with the City’s delivery services; however, residents are also concerned with quality of life issues facing Santa Maria. The City remains committed to delivering high-quality services to the community and to address issues important to Santa Maria residents. On May 5, 2026, the City Council provided direction to place a one -half cent general sales tax measure on the November ballot, seeking approximately $13 million annual in locally - controlled funding to support the City’s efforts to sustain and enhance the full -range of city services, including but not limited to, parks and recreation, and the aquatic center, library, youth programs, and improving the City’s roads and streets. The ballot measure language is amended to reflect sustaining and enhancing general services, whereas Measure U remains focused on public safety.
The City Council desires to submit to the voters a question relating to Adding Chapter 3- 8B Imposing a Transactions and Use Tax. The Ordinance Measure although introduced and set for adoption, is subject to voter approval at the November 3, 2026, General Municipal Election.
Fiscal Considerations
The proposed Ordinance, if approved by the voters, will result in additional local revenue in the amount of approximately $13 million dollars per year
Impact on the Community
Passage of this proposed measure by the voters and enactment of the Ordinance would enable the City to sustain and enhance the full -range of city services. including but not limited to, parks and recreation, and the aquatic center, library, youth programs, and improving the City’s roads and streets.
ATTACHMENT(S)
A. Ordinance Measure 2026