The Vacaville City Council voted 7-0 on Tuesday to place a 1% sales tax increase on November's ballot. If passed, the measure is expected to cost the average family of four up to an extra $650 per year.
The move comes as Vacaville faces a projected $11 million budget deficit in the upcoming fiscal year.
City Manager Savita Chaudhary says the ballot initiative, titled Measure V, would bring the city an additional yearly revenue of $28 million.
"Our city is struggling like any other city… We're not painting a dire picture. We're painting the facts," Chaudhary said.
An economist that the city hired estimates that the tax increase will add $500 to $650 annually in taxes for the average family of four, despite the sales tax not being applied to groceries or medical supplies.
"One percent sounds like a negligible amount but when you add it up over your sales for the year, it can be quite significant," said Jeanne Whitehouse, owner of The Artisan in downtown Vacaville.
As California remains among the states with the highest costs of living, proponents of Measure V face the challenge of convincing voters to raise taxes that will affect their everyday lifestyle.
"Voters are extremely reluctant to raise taxes on themselves," political strategist Steven Maviglio said. "Taxes voted on by people on themselves are very hard to pass."
Vacaville currently holds the lowest sales tax in Solano County at 8.125%, with Benicia holding the highest sales tax at 9.625%. Measure V would place Vacaville's sales tax above that of Dixon and Fairfield, which is 8.375%, and on par with Suisun City and Rio Vista.
"We [Vacaville] have a lot of room to grow in our sales tax capacity," Chaudhary said.
As of 2026, Vacaville spends 67% of its general fund on the Police and Fire Departments combined. The city has already cut its homeless outreach and phased out a medical ambulance at one of its fire stations due to its budget shortfall.
"It'll be on the city to paint this picture to drastic cuts in public safety and other vital services for this to pass," Maviglio said.
Shop owners are sharing their own frustration with Measure V, as they predict that the sales tax increase will further discourage customers from shopping.
"I will always vote against more taxes," Whitehouse said. "Be it as a business owner or a general citizen … they need to find the money somewhere else to get us the public safety that we need."
Before becoming a shop owner, Whitehouse worked in law enforcement for eight years. She says she understands firsthand the significance of taxes for public safety but still pushes against the increase.
"They are really going to have to show me that they do not have any other options," Whitehouse said. "
Fairfield and Live Oak are also asking voters for a 1% sales tax increase in November. Other cities in Solano County, including Benecia, Suisun, and Dixon, were successful in their pushes for sales tax increases in 2024.
Vacaville completed a preliminary polling on Measure V in November 2025, which revealed that 48% of voters favored the sales tax increase.
If passed, Measure V would take effect in Vacaville in April 2027.
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