Both Pismo Beach and Arroyo Grande have long enjoyed some of the lowest sales tax rates in San Luis Obispo County, holding steady at 7.75% for years. But a vote on the November ballot could change that.
Some residents say they can see the difference and are concerned about a potential change.
“I have noticed how much higher the sales tax is down in SLO than down here,” said Ron Reed, Pismo Beach resident.
"The taxes that they charge for parking in San Luis Obispo... I think that's outrageous," said Wayne Mills, Arroyo Grande resident. "It makes me want to stay away from there.”
In Arroyo Grande, the city council is asking voters this November to approve a new 1% increase, which would bring the sales tax up to 8.75%.
It would be in place for the next decade, adding money to the city's general fund for things like staffing, road repairs, and other infrastructure projects, according to a staff report.
"Why doesn't Arroyo Grande write grants to get money into the city? Why put extra burden on the citizens of Arroyo Grande?" asked Jon Hoffmann, Arroyo Grande resident.
Supporters argue that the city needs the added revenue to maintain and improve essential services.
“I hate to see it go up, but if they do improve the streets then I'm all for it," said Cindy Brown who works in Arroyo Grande.
Meanwhile, in Pismo Beach, the city is looking to extend an existing sales tax measure that was first approved in 2008 and extended in 2014 under Measure I.
A new .5 percent proposal would bring the sales tax to 8.25%.
“I think we've seen some good work going on in Pismo," Reed said. "I think they're putting some of the money into good use.”
However, there are still concerns.
“It's more punitive for the people that are, that just are barely getting by," said Richard Scangarello, Pismo Beach resident. "There are other ways for the city to generate better revenue.”
For some, like Mills, the decision isn't easy.
“In the past, I have not voted for sales tax increases just because it seems to be working well in our city, but I will consider what I read,” he said.
To put the numbers into perspective, if you are in Arroyo Grande and make a $50 purchase, you’ll pay an additional 50 cents in sales tax if the measure passes. In Pismo Beach, you’d pay 25 cents.
If both measures pass, the new rates would begin on April 1 of next year.
