Stockton, which is a city located in California, filed for bankruptcy last year. Today it is the second largest municipality which has filed for bankruptcy. Since then, Stockton has been trying its best to stand on its own two feet again. As a result, it recently hiked up its sales tax from â€œ8.25 percent to 9 percentâ€ as reported by Reuters in a November 5, 2013 article.
This sales tax increase was supported by a majority of Stocktonâ€™s voters. About 53% supported the rise in the sales tax whereas there was only about 47% that voted against the sales tax increase. The increase in sales tax is estimated to bring in over â€œ300 million over 10 years.â€ With this revenue, the city will be able to hire about one hundred new law enforcement officials to safeguard the city. If this tax was not enacted, then the city would have been unable to bring in income, and this would have prevented the City from progressing financially. Thus, Stockton would have had to cut its spending in order to minimize its costs. In addition, if the tax were not enacted, then the city would have had to come up with another way to bring in revenue and to reduce its current debt.
Stockton has â€œrecently filed its plan to exit bankruptcy,â€ which contains agreements reached between the city and its employees, and it also includes any agreements reached between the city and its lenders.Â This plan is waiting for the courts approval.
Whether you have credit card debt or you are facing foreclosure, a personal bankruptcy may be right for you. Jayson Lutzky is a Bronx, New York Â attorney with 30+ years of experience practicing law. He offers free in person consultations, so call 718-329-9500 to set up an appointment to discuss the possibility of bankruptcy and find out if you are eligible. Mr. Lutzky’s office is conveniently located one block west from the 4 train. You may visit our website at www.MyNewYorkCityLawyer.com.