Measure N: Transactions and Use Tax Measure

In plain language

Measure N would add a 1% sales tax in the City of Grand Terrace. It applies to most items sold or used in the city. Groceries and prescription medicine, among other common needs, would not be taxed. Visitors, residents, and other buyers would all pay it. This is a general tax. The money goes into the city's general fund. It can pay for city services such as police and responding to non-emergency calls. The tax would last until voters end it. A new advisory committee would review the money raised and spent, review yearly audits, and report to the City Council each year. The City Council could make some changes later, but any tax increase would need voter approval. A YES vote approves the 1% sales tax. A NO vote rejects it.

Fiscal impact

Adds a 1% sales tax, expected to raise about $1.2 million a year, until voters end it.

Impartial analysis

MEASURE N: GRAND TERRACE GENERAL SERVICES MEASURE IMPARTIAL ANALYSIS On July 28, 2026, the Grand Terrace City Council voted to place Measure N, entitled the “Grand Terrace General Services Measure” (“Measure”) on the November 3, 2026 general municipal election ballot. If approved by a majority of voters, the Measure would add Chapter 3.32 to the City of Grand Terrace Municipal Code, establishing a one percent (1.00%) transactions and use tax (commonly known as a “sales tax”) for City general fund purposes. State law allows certain entities, including municipalities, to increase sales tax within their jurisdictions if approved by the voters. If approved, the Measure would impose a 1.00% tax upon retailers’ gross receipts from the retail sale of most tangible personal property sold within the City, and to the storage, use, or other consumption within the City of most tangible personal property purchased from retailers. It is estimated that this tax will generate approximately $1, 200,000 annually in revenue. Funds generated would be unrestricted and be placed in the City’s general fund, and may be used for any City general fund purposes, such as the following: • Law enforcement services, • Responding to non-emergency calls for service, • Funding general public services provided by the City. Food purchased as groceries and prescription medication, among other common essentials, would not be taxed under the Measure. Visitors to Grand Terrace would bear part of the tax burden imposed by their local activities and thus contribute to the City’s ability to maintain general public services they use while visiting. Residents and other purchasers of goods in the City would also be subject to the tax. The specific retail sales and uses subject to the tax would be determined under California Department of Tax and Fee Administration (“CDTFA”) regulations and the CDTFA would administer the tax under contract with the City of Grand Terrace. The Measure includes accountability provisions, including the creation of an Advisory Committee to review revenues and expenditures of the tax and review annual audit reports related to the tax, and make at least one written annual report to the City Council summarizing findings and including any appropriate recommendations. While the ordinance permits future amendments by the City Council, any tax increase must be approved by voters. The transactions and use tax proposed by the Measure would take effect only if it receives a majority “YES” vote at the November 3, 2026 general municipal election. A “YES” vote is a vote to approve a 1.00% transactions and use general tax. 01247.0007 2162875.3 ______________________________________ A “NO” vote is a vote against a 1.00% transactions and use general tax. The above statement is an impartial analysis of Measure N. If you desire a copy of the ordinance or measure, please call the Grand Terrace City Clerk’s Office at (909) 954 -5207 and a copy will be mailed at no cost to you. Dated: Adrian R. Guerra, City Attorney City of Grand Terrace 01247.0007 2162875.3

Official ballot arguments

Filed for the official voter guide by each side, printed as submitted.

The official arguments will appear here once both sides’ arguments are on file.