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TOURISM PROMOTION –
TRANSIENT OCCUPANCY SURTAX. Shall
the Board of Supervisors be authorized to impose a special tax through enactment
of an ordinance establishing a 1% surtax on rent charged to guests of hotels and
other transient accommodations located within the unincorporated area of
Santa Cruz County, in addition to the amount now payable under the County’s
existing Uniform Transient Occupancy Tax, for the purpose of protecting the
local economy by the promotion of tourism in Santa Cruz County? |
IMPARTIAL ANALYSIS BY COUNTY COUNSEL MEASURE
O (SANTA CRUZ COUNTY TRANSIENT
OCCUPANCY SURTAX) Existing County law imposes a ten percent transient occupancy tax in the unincorporated areas of the County. The ten percent tax is charged on the rent
paid by guests for occupying the following types of facilities for periods of
thirty consecutive days or less: hotel,
inn, tourist home or house, motel, studio hotel, lodginghouse, roominghouse,
apartment house, dormitory, public or private club, mobile home or house
trailer at a fixed location, and (with certain exceptions) camping
sites. If approved by at least two-thirds of
those voting on this measure, the County Board of Supervisors would be
authorized to amend the County Code by increasing the transient occupancy tax
from ten percent to eleven percent. The additional one percent tax on the rent
paid by guests at transient accommodations would be used to fund the County’s
share of costs for the Santa Cruz County Conference and Visitors Council, for
the promotion of tourism in Santa Cruz County. A “yes” vote is to authorize the
additional one percent transient occupancy tax. A “no” vote is against authorizing the
additional one percent transient occupancy tax. DANA McRAE, COUNTY
COUNSEL By Rahn Garcia, Chief Assistant County Counsel ________________________________________________ FISCAL
IMPACT STATEMENT BY COUNTY AUDITOR MEASURE O This Measure would increase the existing Transient Occupancy Tax from
10% to 11%. It is estimated that an additional 1% would produce about
$100,000 for the 2002-03 fiscal year and about $330,000 each year thereafter,
plus or minus the percentage change in actual tourism and hotel and motel
rates. These estimates are based upon the actual Transient Occupancy Tax
Revenues for the 2001-02 fiscal year. This increase would constitute a new special tax requiring a
two-thirds voter approval dedicating the 1% increase for the sole purpose of
funding the County’s share of costs of the Conference and Visitors Council.
If the Measure is approved by the voters, said proceeds from this special
purpose tax will be accounted for in a separate fund from the County’s
General Fund providing for the discrete accountability of these monies. Because the
Transient Occupancy Tax is imposed upon visitors lodging in local hotels,
motels, and like facilities, it does not have a local tax burden upon the
residents of the County of Santa Cruz. Respectfully, s/
Gary A. Knutson Auditor-Controller |
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FULL
TEXT OF BALLOT MEASURE O ORDINANCE AMENDING CHAPTER
NO. 4.24 OF THE
SANTA CRUZ COUNTY CODE BY
ADDING SECTION 4.24.031
RELATING TO THE
ESTABLISHMENT OF A 1% SURTAX The Board of Supervisors of the County of Santa
Cruz ordains as follows: SECTION I Chapter 4.24 of Title 4 of the Santa Cruz County
Code is hereby amended by adding Section 4.24.031 thereto, said new section
to read as follows: 4.24.031
Surtax. A. For the privilege of occupancy in any
transient occupancy facility, such transient is subject to and shall pay a
surtax of one percent of the rent charged on the same terms and conditions
under this Chapter, in addition to the tax imposed pursuant to Section
4.24.030. B. The County Treasurer shall establish a
Conference and Visitors Promotion Fund within the County General fund and
shall deposit all revenue generated by this surtax into the Conference and
Visitors Promotion Fund. C.
Revenue in the Conference and Visitors
Promotion Fund shall be used exclusively for the promotion of tourism in
Santa Cruz County and no other purpose.
In order to carry out this purpose, the Board shall annually contract
with the Santa Cruz County Conference and Visitors Council (hereafter
"the Council"), which is a non-profit corporation doing business in
the County and established for the purpose of promoting tourism within the
County. D. The Board shall require the Council to
submit an annual accounting of the use of funds provided pursuant to this
section, setting forth with particularity and in accordance with generally
accepted accounting standards the amount and nature of all such expenditures. E. The Council shall make available to the
County Administrator or County Treasurer all of its books, records, and
accounts for examination or audit upon reasonable notice and which in any
manner relate to the expenditure of funds provided pursuant to this section. SECTION II This
ordinance shall take effect on the 31st day after the date of final passage. |
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44-505
VOTER
INFORMATION PAMPHLET
MEASURES, ANALYSES AND
ARGUMENTS (whichever is applicable to
your ballot) Arguments in support of, or in opposition to, the proposed laws are the opinions of the authors. |
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ARGUMENT IN FAVOR OF MEASURE O
Measure O requires tourists to pay for the services they receive while visiting our community and ensures that your tax dollars are not used to fund the Santa Cruz County Conference and Visitors Council. Over
the next ten years, measure O will make nearly $3 million available for vital county services while creating
accountability and safeguards on how your tax dollars are spent. Specifically
Measure O will: · Help streamline the county’s budget. Measure O will make available nearly
$300,000 every year, now spent on tourism promotion, for vital county
services such as senior care or fire department paramedic response. And,
additional money will also be generated for local programs through sales
taxes paid by tourists. · Create accountability. Measure
O ensures accountability and safeguards on how tax money will be
spent. Measure O requires an
independent audit, conducted annually, to ensure that tax dollars are
used as specified in the measure. · Be paid for by tourists. Measure O requires hotel and motel guests
to pay an additional 1% on their room rates.
County residents living in their homes will not have their taxes
affected in any way by this measure. · Protect local jobs. Santa Cruz County is feeling the effects
of California’s slumping economy.
Measure O will help put people back to work and protect existing jobs. On
November 5th, please join local businesses, senior citizens,
working families and elected officials in supporting Measure O. It will free up money for essential county
services every year while creating responsibility and accountability on how
tax dollars are spent. s/ Karen Darling, President, Santa Cruz County Lodging Association s/ Karen Hibble, Executive Director, Aptos Chamber of Commerce s/ Harvey Nickelson,
President/CEO Coast Commercial Bank s/ Sam Farr, Member of
Congress, 17th District s/
Fred Keeley, Speaker pro Tem of the California State Assembly |
No Argument
Against Measure O was filed.
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44-506