California county caught illegally using taxpayer money to promote sales tax hike

Spending taxpayer money to convince taxpayers to pay more taxes — it’s a California specialty.

But it seems Nevada County went too far as the state’s political watchdogs found the Lake Tahoe-area jurisdiction spent more than $34,000 in taxpayer money trying to convince residents to raise their own taxes — and now that failed campaign is poised to cost county taxpayers another $31,500.

California’s Fair Political Practices Commission is scheduled to vote Aug. 20 on a proposed settlement stemming from Nevada County’s promotion of Measure V, a 2022 ballot measure that would have raised the county sales tax by half a percentage point for 10 years.

“I find it deeply ironic that the government would use taxpayer dollars to campaign for increasing taxes on those very same taxpayers,” Nevada County Republican Party Chairman Mac Young told The California Post.

“Public funds belong to the people, and they should never be used to persuade the public to give the government even more of their money.”

Measure V was pitched as a way to generate roughly $12 million annually for wildfire prevention, emergency services and disaster preparedness. But voters weren’t convinced.

The measure received just 48.41% of the vote and failed — despite Nevada County spending $34,614 in public funds on two mailers that state regulators determined crossed the line from informing residents into political advocacy.

The first mailer landed in the mailboxes of 33,351 residents in October 2022 at a cost of $17,708 and touted Measure V as “responsive to community priorities,” including preventing wildfires, improving evacuation routes, enhancing emergency communications and helping low-income seniors and people with disabilities.

But regulators found the county buried the less attractive part — the half-percent sales tax hike — in the smallest font while emphasizing the measure’s benefits.

“By emphasizing only the positives while obscuring the downsides (like a hidden tax increase), the communication becomes a form of advocacy likely to persuade the reader, not objectively inform them,” FPPC investigators concluded.

Even a disclaimer stating that Nevada County did not advocate a yes or no vote wasn’t enough to keep the mailer on the right side of state law, regulators said.

The county tried again later that month, spending another $16,906 to send 33,101 residents a second mailer. It prominently warned that “92% of Nevada County residents live in high or very high fire hazard severity zones” before touting Measure V as a way to improve evacuation routes and get residents out safely during emergencies.

Regulators concluded that mailer also promoted the measure’s benefits while minimizing the tax increase and other potential downsides.

The FPPC charged Nevada County with seven violations: two counts of prohibited campaign-related mass mailings at public expense, two disclosure violations, one count for failing to timely file a semiannual campaign statement and two counts for failing to timely file 24-hour independent expenditure reports.

Regulators characterized the conduct as carrying a “high degree of public harm,” saying taxpayer-funded efforts to influence voters threaten the integrity of elections.

“Here, the County supported the passage of a local measure using $34,614 in public funds,” the FPPC wrote. “The County influenced the election with the Mailers, but Measure V failed.”

County officials did not immediately respond to a request for comment on the illegal mailers and the cost to taxpayers on the front and back end.

Nevada County is agreeing to a $31,500 penalty — $4,500 for each violation — and filed corrective campaign reports as part of the settlement. The proposed penalty is scheduled to be finalized on Aug. 20.

County Republicans said they intend to keep a close watch on future county tax measures.

“We will remain vigilant and continue serving as Nevada County’s watchdog for good governance, transparency, and accountability,” Young said.