Palm Springs’ Proposed 1 Percent Sales Tax Questioned

Main Street Palm Springs was the third group to endorse a 1 percent sales tax proposal set for a city-wide vote in November.

The revenue would benefit the city’s general fund to pay for capital improvements.

“One of these programs will be for the (Desert)Fashion Plaza,” said City Manager David Ready, “to pay off any bonds.”

Main Street’s vice president Paul Mediano said he hoped some of that money would be spent on streets and parks, such as Demuth Park.

“[The park] was designed for little leagues,” he said. “With so many baseball organizations out there, it wasn’t built to have these tournaments that could bring revenue to our city.”

The current sales tax is 7.75 percent.

If voters approve it, the proposed sales tax would increase to 8.75 percent. It woouldn’t go into effect until April 1, 2012.

The one-percent tax would remain at that rate for 25 years, generating about $8 million a year, according to the measure’s supporters.

But some merchants wondered if some of that money will used for city salaries.

“There’s a lot of people trying to get money for the police department,” said Mediano. “But, at this point, we’ve all been set back by this economy.”

Ready would not confirm if the money would help pay city salaries, but he did tell News Channel 3 if the tax passes, the city plans to pump $40 million of it to the Fashion Plaza.

“For our dollars we’re putting in, we’re actually receiving titles to parcels of the land,” Ready said. “We’ll receive the parking. We’ll receive vacant spaces that potentially could be for the [Palm Springs Art] museum to expand.”

People won’t know for sure how the money will be spent until September, but store owners are making it clear: the fashion plaza isn’t the only thing that needs fixing.