"Cupertino City Council is considering adding a tax measure to the 2026 ballot after facing potential hikes in public safety costs and flagging revenue to the City. The issue comes as Cupertino's contract with the Santa Clara County Sheriff's Office which the city relies on for police services is under negotiation and set to expire in June. Under its current contract, the city pays $18.6 million dollars in its contract with the sheriff's office nearly a fifth of the city's budget."
"For decades a tax deal between Apple and the city netted Cupertino millions in tax revenue from the lucrative tech giant. But in 2023, the California Department of Tax and Fee Administration audited the city and determined the state should receive that revenue instead. The shift led to the loss of millions of dollars in income to the city and resulted in a $12 million payout from Cupertino last year."
"Given the multiple financial pressures, the city staff presented several options to bring more revenue to the city, including a quarter-percent sales tax increase that could raise $5.4 million, an increase in taxes on hotels and short term rentals that could raise $1.9 million. Mayor Kitty Moore acknowledged that as the city developed more housing it would require more public safety services, and Councilmember Sheila Mohan noted that even as the population had stayed roughly stagnant, the demand for city services had only increased."
Cupertino faces rising public safety costs and weakening revenue as its contract with the Santa Clara County Sheriff's Office nears expiration in June. The city currently pays $18.6 million to the sheriff's office, about a fifth of the budget, and staff estimated possible contract cost increases of $1.9 million to $7.6 million. A 2023 tax audit shifted long-standing Apple-related sales tax revenue to the state, prompting a $12 million payout and lost income. A utilities tax that raises $4 million annually will expire in 2030. Staff proposed revenue options including a quarter-percent sales tax, higher hotel/short-term rental taxes, or a parcel tax, while some councilmembers urged budget cuts instead.
Read at www.mercurynews.com
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