As part of the Measure Z quarter-cent sales tax increase approved by San Leandro voters in November 2010, sales tax will increase from 9.75% to 10%, according to a press release from the California State Board of Equalization on March 16, 2011.
Opponents of the sales tax argued that San Leandro would have the highest sales tax in northern California if Measure Z passed, but sales tax increases in Union City and El Cerrito to 10.25% give those cities that distinction.
Revenue from the sales tax increase is not likely to have a big effect on the current fiscal year, which ends on June 30, but is estimated to generate $3 to $4 million in revenue for the next fiscal year. Some of that additional revenue will be offset by an increase of $852,000 increase in the City's CalPERS contribution next year and an increase of $490,000 in employee costs from new employee contracts that were approved in December 2010.
According to the press release:
Retailers generally need to apply the new sales tax rates if they: