Napa residents could soon pay an extra cent for every dollar spent on taxable items in the city, as initial results show Measure G — which would raise the tax from 7.75 percent to 8.75 percent — is on track to pass

Election night results show that with 29 percent of all potential votes counted, 57 percent voted to support the measure, which requires a simple majority to pass.

The next round of votes is expected on Friday afternoon.

The Democratic media will rely on information from election officials before determining whether the measure passes or not, since not everyone who received a ballot will be cast.

Napa City Council member Mary Luros told The Press Democrat Tuesday night that she is cautiously optimistic the measure will pass. People are struggling with rising costs, she said, so it means a lot to her that people are willing to make an investment in the community.

“I’m very excited about the opportunities that lie ahead of us,” Luros said. “We don’t have to make the cuts we were going to make, and there are exciting decisions about what’s ahead that will make us the world-class location we should be.”

Napa Mayor Scott Sedgley said he was thankful voters appeared to be sending the measure through for approval. He said that if it passes, the city may be able to redirect the hotel room tax to one-time expenses to improve the city instead of depending on it for operating revenue.

“The measure is so important to the delivery of the essential services we should be providing,” Sedgley said

Opponents of the tax, including the Napa County Taxpayers Association, however, cautioned that the tax is a permanent increase with no built-in date that would end or guarantee where the revenue would go.

Napanians currently pay a 7.75 percent sales tax, which does not include items such as utilities, housing, food and prescription drugs. Most of that — 7.25 percent — is imposed by the state, and the remaining 0.5 percent comes from a voter-approved road repair measure. The city currently receives 1 percent of the total, while 0.25 percent goes to Napa County.

Increasing the percentage by another 1 percent would raise about $22 million for the city’s general fund each year, according to city estimates.

The money would go toward various public services the city provides, but the measure does not earmark the funds for any specific use.

City leaders said the increase is necessary because of projected budget shortfalls in the coming years. Along with that, the sales tax increase would allow the city to depend less on revenue from the sometimes volatile hotel room taxes, which make up about a quarter of the city’s revenue.

Napa’s sales tax is also tied for the lowest in the region with American Canyon, Yountville and Calistoga. With a 1 percent increase, it would still be smaller than nearby areas like Vallejo, Sonoma and Santa Rosa.

You can reach writer Edward Booth at 707-521-5281 or [email protected].