West Sacramento to Santee: Return Our Sales Tax

The City of Santee was blasted by the mayor of West Sacramento for being a “rogue city” that hijacked sales tax revenue to which it is not entitled, it was reported today.

City leaders in West Sacramento are fuming over the loss of $600,000 in sales tax revenue from HD Supply, a home improvement company with a large distribution plant in West Sacramento. The City of Santee made a sweetheart deal to hijack the money, according to a report in the Sacramento Bee.

The Florida-based company consolidated its point-of-sale operations in Santee, in suburban San Diego County, so that all its local sales tax would go to that city. In return, Santee agreed to rebate 50 percent of its collections if HD Supply’s California tax revenue exceeds $500,000 annually, Chang said.

“They are simply hijacking 100 percent of the sales tax and sending it to this rogue city,” West Sacramento Mayor Christopher Cabaldon told the Sacramento Bee. “Why would we keep zoning for industrial development if it doesn’t provide stable revenue to cover the costs associated with it?”

West Sacramento City Manager Martin Tuttle told the Bee that HD Supply had previously fielded orders from its office in West Sacramento, making the city the point of sale for orders and netting the city nearly $1 million annually, according to Chang.

Santee officials have defended the economic benefits of the deal with HD Supply.

“It’ not like we went and sought them out,” Pedro Orso-Delgado, Santee’s acting city manager, told the paper. “They came to us and we established a dialogue.”

Santee’s finance director, Tim McDermott, told Chang that the 20-year- agreement with HD Supply has netted Santee about $1 million.

In response, West Sacramento has championed Senate Bill 533, introduced by state Sen. Richard Pan, D-Sacramento, Chang told the Bee. The bill would close loopholes that allow companies to reassign their sales tax to another area without having to close their original location.

If passed, the bill would not affect the existing agreement between HD Supply and Santee. The bill was to be heard in the state’s Senate Appropriations Committee Monday, according to Chang.

--City News Service

Also on Patch:

• Heidrick Ag History Center Has New Name, Upcoming Events
• 1 Dead, 8 Injured After Truck Plows Into Crowd At Port Chicago Hwy Eatery Parking Lot
• How To Post Your Event or Announcement on Patch
• Students: Sponsor A Blood Drive And You Could Win A Scholarship
• 50 Sexting/Texting Terms and 7 Snapchat Tips Every Parent Should Know