Count your pennies; you'll pay more today
By Nicholas Yulico, STAFF WRITEROakland Tribune
Article Last Updated: Thursday, July 01, 2004 - 4:59:07 AM PST

Starting today, shoppers in Alameda County will pay the highest sales tax in California -- 8.75 percent -- up from 8.25 percent.

The half-percent increase, approved by county voters who passed Measure A in March, funds county health services, with $90 million expected to be raised this year.

The increase amounts to an extra $50 in sales taxes for every $10,000 of goods purchased -- which is the price tag on a 50-inch Sony plasma set, the most expensive television offered at Circuit City.

All nontaxed items, like certain foods and prescription drugs, are not affected.

While some consumers said the extra tax will not affect their buying habits, others, like Noel David, 32, of Hayward, said it will.

"For daily needs, we can't do anything about it. But on extra stuff, it affects you," he said, adding that he might not buy as many CDs now.

People looking to save money could head to Contra Costa or

San Mateo counties, where the tax remains 8.25 percent for now, or go to Marin County where the sales tax is just 7.25 percent, one of the lowest in the state.

Purchasing a $10,000 television in Marin, rather than Alameda County, would save someone $150. It remains to be seen whether consumers will make such moves.

"If one county's sales tax is a percent or two above another county, not just a tiny fraction, it could influence some people to shop in the area where they'll pay less," said Ron Roach, spokesman for the California Taxpayers' Association.

But for other big ticket items -- specifically vehicles, vessels or aircraft -- a person pays the sales tax according to the county where the item is registered, not where the product is purchased.

Dan Simat, retail operations manager at Pleasanton Auto Mall, said he doesn't expect the increased sales tax to deter customers from buying a new car -- even if it does amount to an extra $200 for a $40,000 automobile.

"What's two hundred bucks for somebody paying $40,000?" he said, adding that there wasn't a rush of customers coming in to buy cars before today, when the new rate went into effect.

For a really big item like a $1 million yacht, the new tax rate will have more of an effect, said Wayne D'Anna, owner of D'Anna Yacht Center, an Oakland seller of high-end boats.

People who buy boats north of $500,000 usually have vacation homes or business addresses in other counties where they can register the boat, rather than pay an extra $5,000 in taxes by registering it in Alameda County, D'Anna said.

"People who are going to be losing that kind of money are not stupid," he said.

Alameda County has no numbers on the expected impact of the increase for businesses and consumers.

The Economic Development Alliance for Business, which supported Measure A, does not expect any significant damage to the county's businesses.

"We heard no concerns from either our chamber members or our business members," said Bruce Kern, the center's executive director.

Measure A was passed by over 71 percent of county voters in March.

It calls for 75 percent of the funds raised to go to Alameda County Medical Center, a network of hospitals and clinics including Oakland's Highland Hospital.

The remaining 25 percent goes to community clinics, emergency services for the poor, and public and mental-health services in the county.

Joe DeVries, field director for Alameda County Supervisor Nate Miley, who sponsored Measure A, said his office originally looked at charging a parcel tax of $200 to fund the health care system but decided not to "put the pinch on property owners."

Instead the burden is put on consumers like Kevin Watt, 21, of Berkeley, who was shopping for a computer product recently at Circuit City in Hayward. For Watt, who said he didn't support Measure A, the extra tax has a psychological effect that may change his buying habits.

"I'd like to think I'd probably still keep the same buying habits completely. I'd just feel angry every time I spent money and saw that I was spending more than it cost me in San Francisco," Watt said. "So since I live in Berkeley, it would probably just make me go to San Francisco instead. It's more enjoyable to shop in the city."

Nicholas Yulico can be reached at nyulico@angnewspapers.com.