New sales tax in Merced County goes into effect in April

Merced County’s sales tax goes up Saturday, a change adopted by voters to pay for local and regional road projects.

Supporters of the new tax adopted through Measure V in November say Merced County will be better positioned to pull down state and federal funding.

The new tax, which garnered more than 71 percent of votes, is estimated to generate about $450 million over 30 years, according to the plan.

The new tax rate will be 8.25 percent in Merced, Atwater, Gustine and Los Banos, according to the state State Board of Equalization. Livingston, Dos Palos and those shopping in the unincorporated parts of the county will pay a 7.75 percent rate.

The proposed half-cent tax is expected to generate an estimated $1.5 million a year in the city of Merced, and $15 million a year countywide. Each city is to get an annual allotment that could be used on local projects as well, according to the measure.

Stanislaus County passed a similar new tax, which it called Measure L, in November.

Advocates say counties like Fresno and Tulare have benefited from being self-help, in which the county has a sales tax it can use to match state and federal dollars.

Earlier this month, Merced County Association of Governments leaders announced they are seeking applicants for the Measure V Citizens Oversight Committee.

To apply for the seven of the county-wide posts, find the application packet and instructions on MCAG’s website, www.mcagov.org/240/Measure-V---Transportation-Expenditure-P.

The deadline is 5 p.m. Monday.

This story was originally published March 30, 2017 at 6:17 PM with the headline "New sales tax in Merced County goes into effect in April."