NEWPORT BEACH : Chamber’s Directors Back Measure to Raise Sales Tax

Directors of the Newport Harbor Area Chamber of Commerce have endorsed Measure R, the proposal to raise Orange County’s sales tax by a half-cent on the dollar.

“The bottom line is simple: The tax, although distasteful, represents the only identifiable solution that has been offered to date” for the financial crisis following Orange County’s Dec. 6 bankruptcy filing, the board said in a statement.

The sales tax increase, the board said, would far outweigh “the costs of litigation and higher interest rates on future borrowing for the county for years to come.”

The collapsed bond pool lost $1.7 billion. Measure R would increase the sales tax countywide from 7.75% to 8.25% to help make up that shortfall.

Richard Luehrs, executive director of the Newport Harbor chamber, said the organization is “philosophically opposed to increases in taxes and in no way gives approval to standard operating procedures in county government” but is urging a “yes” vote on the tax increase to stabilize the county’s economy.

County Chief Executive Officer William J. Popejoy will speak on the county’s financial situation at a chamber breakfast meeting Wednesday.

The meeting, at 7:30 a.m. at the Balboa Bay Club, 1221 W. Coast Highway, is open to the public. The cost will be $17 for chamber members and $19 for non-members. For more information or to make reservations, call (714) 729-4400.