Napa residents could soon pay an extra penny for every dollar spent on taxable items in the city, early results show. Measure G – which would increase the tax from 7.75% to 8.75% – is close to passage.

Election night results show that with 29% of the total potential votes counted, 57% voted in favor of the measure, which requires a simple majority to pass.

The next round of voting is scheduled for Friday afternoon.

The Democratic press will rely on information provided by election officials before determining whether the measure passes or fails, because not everyone who received a ballot will have voted.

Napa City Council member Mary Luros told The Press Democrat Tuesday evening that she was cautiously optimistic that the measure would pass. People are struggling with rising costs, she said, and so it means a lot to her that people are willing to invest in the community.

“I’m really excited about the opportunities that lie ahead,” Luros said. “We don’t have to make the budget cuts we should have made, and there are exciting decisions about the next steps that will make us the world-class location we are meant to be.”

Napa Mayor Scott Sedgley said he is grateful that voters appear to be passing the measure. He said if the bill passes, the city might be able to divert hotel room taxes toward one-time expenses to improve the city instead of relying on it for operating revenue.

“This measure is very important to providing the essential services that we are supposed to provide,” Sedgley said.

Opponents of the tax, including the Napa County Taxpayers Association, have warned, however, that it would be a permanent increase, with no planned end date or guarantee where the revenue would go.

Napans currently pay a 7.75% sales tax, which does not include things like utilities, housing, groceries and prescription drugs. The bulk – 7.25% – is mandated by the state, and the remaining 0.5% comes from a voter-approved road repair measure. The city currently receives 1% of the total, while 0.25% 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 be earmarked for various public services provided by the city, but the measure does not earmark them for any particular use.

City leaders said the increase was necessary because of expected budget shortfalls in coming years. Along with that, increasing the sales tax would allow the city to rely less on the sometimes volatile tax revenue from hotel rooms, which make up about a quarter of the city’s revenue.

Napa’s sales tax is also the lowest in the region along with American Canyon, Yountville and Calistoga. With an additional 1%, it would still be lower than neighboring areas like Vallejo, Sonoma and Santa Rosa.

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