Tax hike to pay for road repairs |

Tax hike to pay for road repairs

Nevada City residents will see a half-cent sales tax increase starting April 1, stemming from voter approval of Measure S in the November 2006 election.

The money from the hike will be used to repair the city’s roads and sidewalks.

The city engineer and the Public Works director of Nevada City are working on a list of road-repair projects that will be completed with the tax money, City Manager Mark Miller said.

“They are using criteria such as conditions of the streets, the underground utility work that needs to be done and the traffic flow so that they don’t disrupt the traffic disproportionately in an area,” Miller said.

Measure S, which passed with 80 percent of the votes, raised the sales tax from 7.375 percent to 7.875 percent – adding half a cent of tax for every dollar spent. The increase is expected to raise an estimated $7.2 million over 16 years.

“We will probably borrow money initially to get the roadwork started till we get the tax money from the state Franchise Tax Board,” Council member Sheila Stein said.

The money raised by the tax increase will be monitored by a five-member citizen’s committee, Stein said.

Nevada County and Grass Valley have a 7.375 percent sales tax, while Truckee has a sales tax of 7.875 percent, according to the California State Board of Equalization’s Web site.


To contact Staff Writer Soumitro Sen, e-mail or call 477-4229.

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