Sales tax increase hits double digits in 5 Bay Area cities

SAN LEANDRO, Calif. (KGO) -- The sales tax will go up into the double digits on Wednesday in five Bay Area cities - Albany, Hayward, Union City, San Leandro and El Cerrito.

When San Leandro resident Steven Reaves showed up to buy a car on Tuesday, he had no idea he was making it under the wire.

"I'm glad I'm here today rather than being here tomorrow, obviously," Reaves said.

That's because on Wednesday, sales tax goes up to ten percent. That's a half-cent hike from the county and a quarter-cent from the city of San Leandro, both approved by voters.

"When tax hikes like this happen, not a lot of people are aware of it," San Leandro car dealer said.

But a car salesman knows, when they get to the bargaining table, that three-quarters of a percent can make a difference.

"Few hundred dollars but that could be a car payment for some folks," the car dealer said.

Steep as it may seem, local leaders say the higher tax rate will actually benefit car buyers, in part by giving them better roads to drive on.

Potholes are first on the list for that half-cent Alameda County tax hike, also meant to improve congested freeways and put a down payment on extending BART to Livermore.

San Leandro will see some of that money.

"Well, they better fix that road back there that has all the little dips and stuff in it," Reaves said.

"The worst streets in town will see the money first," San Leandro City Manager Chris Zapata said.

Zapata said San Leandro was a big supporter of the county tax but needed to raise more money.

"We will be buying fire trucks, fire engines, we will be adding three police officers," Zapata said.

Public safety is the priority for a city where most of the sales tax is paid by shoppers who come here from elsewhere.

"It's important that people continue to shop here but to shop here they have to have safe streets, good streets, quality signage and quality services," Zapata said.

The tax will also help the city's library system, including programs for kids, and of course, patch even more potholes.

"Do they really need that tax increase in order to do that?" Reaves asked.

Well, the city and county say yes but they've each appointed a citizens' oversight committee just to make sure the money's being well spent.

Those tax hikes will remain in effect for the next 30 years.

Click here for the full list of California city and county sales and use tax rates effective April 1, 2015.