HomeMy WebLinkAboutPOWERPOINT PRESENTATION - VOTER INITIATIVE REGARDING HOTEL BED TAX - Item 12Item 12. 0
oter Initiative regar
Hotel Bed Tai
July 15, 2014
In 1978, the City Council enacted
hotel Bed Tax rate of 6 %.
that rate has never been changed
.he intervening 36 years.
ackground
2
It is now the lowe
n Orange County
.ax.
st rate of any cit
that has such a
twenty Orange County cities have
.ax rates of 10% or higher.
Anaheim's rate is
grove's is 14.5 %.
,round
15% and Carder
3
At the July 1 Council meeting, the T
Chamber of Commerce requested the
Council place a measure on the November
ballot.
The requested measure would allow the
voters in Tustin to decide whether to raise
the hotel bed tax (also known as a
"transient occupancy tax"") to 10 %.
he P...jposed Initiative
ALI
The hotel bed tax only affects those who
come to Tustin and who stay temporarily
(30 days or less) in a hotel, time share c
other structure for dwelling, lodging or
sleeping purposes.
Residents of Tustin
unless they stay in
30 days or less.
don't pay this tax
a ""hotel" in Tustin for
ustin Residents Are
enerally Not Affected
5
As the Chamber of Commerce requeste
my office has prepared the necessary
documents to place the measure on the
ballot in November.
The measure also contains clarifying
amendments to the current ordinance i
order to clarify the scope and applicatic
of the tax due to changes in law and th
hotel industry since 1978.
he November Ballot
R
If the voters approve the initiative, City
staff estimates that additional revenue o
approximately $500,000 would be
generated each year.
stimated Impact
:alifornia law requires:
The Resolution placing the matter
before the voters in November mug
be approved by 2 /3rds (4 member
of the City Council; and
The ordinance itself must be
approved by a majority of the vote
i3proval Proc(
E-11
Recommended Action:
Adopt Resolution
14 -51 to submit
naiiot measure to the voters to
increase the hotel bed tax from 60X
to 10 %; and
Direct staff to take a l l ste as
necessary to place this matter on the
ballot, including soliciting ballot
arguments regarding the matter.
ecommended Action
01
The Council has two primary
:)allot argument options:
(1) Designate !itself or Council member(`
to submit arguments in favor of the
measure; or
(2) Take no further
the City Clerk will
argument will go
r)tio6'
action, in which case
choose which
n the voter pamphlet
4% Ballot Argu,.
10
If the Council takes no further
action, then:
The City Clerk wo
uld be require
to give priority to a bona fide
association that is the proponer
of the measure
In this case, that would be the
Chamber of Commerce
ptiO6,
I
llot Argument
11
Recommended Action:
If the Council wants the Chamber of
Commerce to prepare the ballot
argument in favor, then take no
further action.
If the Council wishes to designate
itself or Council member(s) to
prepare the argument, then conside
a Resolution making the designation
ecommended Action
12
ions?
13