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San Diego expected to see major tax shortfall amid COVID-19

Posted at 5:02 PM, Mar 26, 2020
and last updated 2020-03-26 20:07:06-04

SAN DIEGO (KGTV) -- San Diego Mayor Kevin Faulconer said Thursday that the city is expected to see a major decline in tax revenue due to the coronavirus.

Faulconer said the city usually takes in an estimated $300 million in sales tax throughout the fiscal year.

This year, however, the city is expected to lose $26 million in sales tax alone.

Similarly, Faulconer added that the city could lose as much as $83 million in tourism tax.

The news comes the day after the famous Hotel del Coronado announced its closure amid the COVID-19 pandemic.

RELATED: Hotel del Coronado suspends operations amid coronavirus

In total, Faulconer said current projections put the city at a $109 million dollar loss for the fiscal year, which ends June 30.

"We have been saving for a rainy day. This is a hurricane," Faulconer said.

The mayor said the federal stimulus package making its way through Washington should offer some help, but urged lawmakers to further help cities financially.

RELATED: San Diego COVID-19 Tracker: County reports third death

During the news conference, Faulconer also said a San Diego lifeguard tested positive for coronavirus. His condition isn't clear at this time.

The announcement was made shortly after county health officials announced a third death due to the virus.