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October 4, 2010


CONTACT:
Gayle Lynn Falkenthal, APR
                     619-997-2495 or gayle@falconvalleygroup.com
                     Lance Roberts, New Car Dealers Association® San Diego County
                     858-550-0080 or lance@ncda.com


New Car Dealers Association Opposes Sales Tax Measure
Proposition D hurts significant sector of local economy


(San Diego)
– The New Car Dealers Association® San Diego County announced its formal opposition to Proposition D, the City of San Diego’s half-cent sales tax increase which will come before San Diego voters on the November 2, 2010 ballot.

Proposition D imposes a half-cent sales tax increase on all eligible purchases within the City of San Diego if city officials meet certain conditions. It is estimated to raise $103 million in funding annually.

Dean Mansfield, President of the Association, said NCDA members are strongly opposed to the proposed sales tax increase. Considering the devastating impacts of the economic downturn on the auto industry in general and auto sales in particular, a tax increase further burdens San Diego consumers at a time when most can least afford it.

“Perhaps no other retail industry has been hurt by the economic downturn like auto dealers,” said Mansfield. “The proposed sales tax increase will hurt so many people in our industry just as it is starting to recover – especially the working families who have been struggling to make ends meet while auto sales dropped to historic lows.

“If you're dealing with a tight budget, sales taxes can make the difference between a car being within your financial means or being out of your financial reach. Prop D could force buyers to put off the purchase of new vehicles or restrict the choices they have in purchasing what they need for their families or businesses.

“In a worst case scenario, people lose jobs and businesses close due to decreased sales which negatively impacts the local economy. Equally important, lost sales generate no sales tax income at all for the city,” noted Mansfield. “These are some of the unfortunate unintended consequences of a measure like Prop D.”

“As businesspeople, we learn to manage a budget and work within it. Many of our dealers have reduced staff and taken whatever steps were necessary to remain open to serve their customers. Raising the sales tax automatically makes the largest retail purchase by consumers more expensive by hundreds of dollars in some cases. The city needs to take a businesslike approach to its issues and make every effort to find ways to enact the long term reforms so badly needed,” said Mansfield.

A growing list of organizations and individuals formally oppose Proposition D, including regional chambers such as the San Diego North Chamber of Commerce, California Restaurant Association, New Car Dealers Association® San Diego County, Neighborhood Market Association, Asian Business Association, San Diego Association of Realtors, Building Industry Association, Associated General Contractors, San Diego County Taxpayers Association, Lincoln Club of San Diego County, San Diego County Republican Party, San Diego County Libertarian Party, San Diego Tax Fighters, Stop Taxing US, Howard Jarvis Taxpayers Association, Council President Pro Tem Kevin Faulconer, and San Diego City Councilmember Carl DeMaio.

Learn more at www.stopthesalestax.com