Sales tax is currently the City’s third largest revenue source. Sales tax is collected by the State Board of Equalization against tangible items. The current sales tax rate in Half Moon Bay is 8.75%, and the local portion is distributed to cities and counties based on the location of the sale, as follows: for every 8.75¢ collected by the businesses within the City, 1.0¢ goes to the City, 1.25¢ to the County, and 6.5¢ to the State.
In order for the City to be a forward-thinking, prudent steward of public funds and maximize sales tax revenue, we contract with MuniServices as our external sales tax consultant. MuniServices provides the City with summaries each quarter, as well as projections for future quarters and years.