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Sales tax for Tri-City looks difficult
By: PAUL SISSON - Staff Writer | ∞
OCEANSIDE ---- Despite some urging from the public, it's unlikely that Tri-City Medical Center could pay for its $600 million building plans with a sales tax increase, officials said this week.
Anita Gore, spokeswoman for the California Franchise Tax Board, said Tuesday that Tri-City does not currently have the ability to put a sales tax increase on the ballot and that it would take a change in state law to vest hospital districts like Tri-City with such powers.
"If the hospital district wanted to pass a sales tax increase, they would have to get approval from the Legislature," Gore said.
Tri-City's board held a special meeting July 13 to discuss what to do after Proposition F, its $596 million construction and renovation bond, failed at the polls on June 6. The property-tax measure needed two-thirds voter support to pass, but earned a 65.91 percent approval rating.
At last week's meeting, several residents said a sales tax would be more appropriate to pay for the hospital's renovation.
While it could not put a sales tax increase on the ballot itself, Tri-City could ask for help from Vista, Carlsbad and Oceanside, the cities that make up the hospital district. Gore said it is possible for individual city councils to put forward individual sales tax measures on the hospital's behalf.
"The three cities could do it independent of each other, but they would need to, sort of link them ---- put in some sort of poison pill language if you will, to make sure that all three cities' voters approved it," Gore said, noting that it would take a two-thirds vote in each city to pass.
Tri-City President Arthur Gonzalez said at the July 13 meeting that he asked the hospital's attorney to research the sales tax option before deciding to put Prop. F on the ballot.
Kelly Salt, a public finance attorney with Best, Best & Krieger in San Diego, studied the issue for Tri-City. She said that, while it is true that the three cities could put individual sales tax increases on the ballot, it is unclear how money would be transferred from the municipalities to the hospital if a sales tax increase passed in all three cities.
"The problem that we have is that, under the current law, there is nothing that specifically addresses whether a city or county could impose a tax and then transfer that to another entity," Salt said.
Given that the law does not state specifically how the money would move from cities to the hospital, Salt said she would advise Tri-City against pursuing a sales tax.
"We could not recommend it at this time," Salt said.
Legal issues aside, it is unclear whether each city would agree to put forth a sales tax increase on the hospital's behalf.
Vista has already proposed putting its own half-cent sales tax increase on the November ballot to fund several city projects, including a new City Hall/civic center, two new fire stations and renovations to a third firehouse.
Jim Baumann, chief executive officer of the Vista Chamber of Commerce, said another sales tax increase for the hospital would not play well in Vista.
"It just seems pretty far-fetched," Baumann said. "I've never heard of such a thing ever, and I'm a big hospital supporter. I've just never heard of someone saying, 'We'll pass a tax and give it to someone else.' "
Ted Owen, chief executive officer of the Carlsbad Chamber of Commerce, said he understands that voters tend to prefer a sales tax increase over a property tax increase. He said that the local business community might become concerned about any tax increase that could hurt business.
"For businesses, the first outcry is that any tax increase is another way to keep people from shopping," Owen said.
Though he said the details of any sales tax proposal would be important before forming an opinion, Owen said that supporting Tri-City with a sales tax increase might be well received in the community.
"I think the sales tax would still be preferred for businesses," he said.
Contact staff writer Paul Sisson at (760) 901-4087 or psisson@nctimes.com.
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Lost wrote on Jul 20, 2006 9:21 AM:Tri-Cities is really getting lost. They worry about having a good plan or explaining it to the public they just keep looking for how to get MONEY!
Taxpayer wrote on Jul 20, 2006 9:40 AM:Lost- maybe they should take back some of the phycisions kickbacks and CEO compensations that's a good start.
Just the Facts wrote on Jul 20, 2006 10:01 AM:Hey Lost & Taxpayer stop the lies and stick to the facts. Their plan is fine , we desperately need a new hospital not only for our health needs bur it's a huge economic engine , just ask the chambers about that. I've been to the Board meetings and I've reviewed documents , there are no pyisican kickbacks and the CEO compensation is what the market is ! The bottom line is without the community support the hospital will whither and die and we'll all be much worse off financially if it does ! The amount of tax the last measure came to was a very small price to pay for access to care locally and keeping one of the largest econmic engines in our area going !
Jack's View wrote on Jul 20, 2006 2:14 PM:You need to understand, the HOMEOWNERS are TIRED of carrying everyone! That's the real FACTS! Come up with a alternative where everyone pays, sales tax or whatever! But not on the backs of just the property owners. I've been in North County for 30 years and never once had to go to Die-City!
just the facts 2 wrote on Jul 20, 2006 2:28 PM: Gee wiz- just the facts- maybe you can join in and pay for the building. I think that everyone that wants to pass a hospital Bond should pay and those of us who don't shouldn’t pay. Start signing people up! Lets see how many takers you get. It is funny how doctors, nurses or people that don't live in the district want us to pay for this Bond. Just sign up all those who want to pay for it that's good enough for me, just leave MY money out of this.
TriCity MD wrote on Jul 20, 2006 10:20 PM:Well, I live in the district. I supported the bond measure in order to ensure my property value and to improve patient safety. I have never recieved any money from the hospital. I have been on the staff for 27 years. I had to use Tri-city once as a patient. I was taken there from south Carlsbad because of bad traffic and because Scripps Encinitas doesn't handle serious emergencies. I didn't die.
Viva to just the F 2 wrote on Jul 25, 2006 9:51 PM:They did try to sign people up and they got 65 and almost 66%. They just made the wrong people angry. The facts are. They asked for too much and I am sick of everyone reaching into my pocket. It's bad enough that housing cost what it does, but the hospital could have done a better job at planning the cost early on and not give huge bonuses to creepy people like the CEO. It is so bad there that a former employee and director opposed it. What makes it worse is they said they are going to "bring them on board" for a committee but never did. Tri-City is just dishing out the lies. I hope the trio will still be there next time.
Nancy Nurse wrote on Jul 31, 2006 11:31 PM:To Viva, Obviously you don't know the ex employee and the board member who didn't support the bond. You talk about making the wrong people angry, what about the 39,000 people that believed in the cause to re-build our community hospital. As a matter of fact maybe Viva really is the EX employee or the board member!!! We will return and we will succeed, remember Oceanside passed the bond if you look at the votes city to city, so Randy, Joe and Sterling are not as lethal as they take credit for.
Last I Looked at Records wrote on Aug 2, 2006 5:36 AM:Hey Nancy Nurse, Viva, and Just the Facts, the last time I looked at Tri City's public records and board meetings, Sterling along with the other 5 board members voted to put the bond on the ballot for the people to decide. As for the physicians kickback, obviously you didn't check the records! Two physicians, and a clinical recruitment are in debt to the taxpayers by several million dollars. That is a fact but neither the board nor management will go after getting back the taxpayers money because to do so means all the taxpayers are going to learn the truth!
SterlingCARES wrote on Aug 3, 2006 12:34 PM:"Fear not the path of truth, for the lack of people walking on it." Robert Francis Kennedy
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