Goleta’s one-cent sales tax went into effect Monday with the start of the new year, increasing the sales tax in the city from 7.75% to 8.75%.

The increase is a result of Measure B, which was on Goleta’s ballot and passed by voters in November 2022.

The breakdown of the 8.75% sales tax rate includes 1% of the revenues staying in Goleta, 7.25% going to the state and 0.5% going to Santa Barbara County.

The sales tax increase is expected to generate about $10.6 million in funding, City Manager Robert Nisbet said.

The city can spend the money on any general government services, but the City Council priorities for funding were explained in budget documents.

Some of the uses for additional revenue generated by the sales tax include the new train station, library and community center projects, the Sheriff’s Office law enforcement contract, managing the Ellwood Butterfly Grove, parks and recreation-related master plans, and the pavement rehabilitation program.

A full list of projects and uses for the money can be found in Goleta’s operating and capital improvement program budget here.

With the increase, Goleta’s sales tax rate is now on par with other nearby cities in the county. Santa Barbara, Santa Maria, Lompoc, Solvang and Guadalupe all have a sales tax rate of 8.75%. Carpinteria has a sales tax rate of 9%, while Buellton and unincorporated areas in the county have a rate of 7.75%.