Quote:
Originally Posted by keg92101
What are you talking about??? The poroblem is that the TOT is SUPOSED to go back into tourism and it doesn't. The city keeps it for other purposes (overhead for Mike Aguirre's press conferences). The reason why the hotel industry did not want to raise TOT tax is that the city would spend it on things other than tourism. What the hotels have done is just like what we have in downtown. Create an assesment district to fund marketting for themselves. NO PROBLEM HERE. Its the only way you can actually get things done without the city wasting it away.
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Excuse me, but TOT taxes are not for TOURISM... They are way to help pay for city services... Please read and learn. It should be an easy tax to get the citizens to support and remember tourists do impact city services. Just count how many fire trucks and ambulances go to the Manchester Grand Hyatt each month....
Transient Occupancy Tax:
Description: The Transient Occupancy Tax is a general tax imposed on occupants for the privilege of occupying room(s) in a hotel, motel, or inn.
Use of the revenues is unrestricted.
However, some cities budget a portion of the revenues for tourism and business development
purposes.
Authority: The authority to levy this tax is promulgated from the State Government Revenue and Taxation Code, more specifically, sections 7280 and 7281.
Overview: Cities may impose the transient occupancy tax on persons staying 30 days or less in a room(s) in a hotel, motel, inn, tourist home, non-membership campground or other lodging facility. Cities may also levy a tax on the privilege of renting a mobile home located outside a
mobile home park, unless such occupancy is for more than 30 days or unless the tenant is an employee of the owner.
According to the most recent survey available from the League of California Cities, transient occupancy tax rates ranged from 4 to 12 percent.
Nearly two-thirds (65.7 percent) of cities reported using their tax revenue as a general revenue for general fund purposes.
Currently, more than eighty (80) percent of cities in the state collect a transient occupancy tax.
Benefits of considering an increase in the Transient Occupancy Tax include placement of a larger portion of the tax burden to provide city services on transient visitors to the community. Residents benefit from this spreading of the costs of services over a larger tax base, including those visiting
the community, thereby lowering the cost of services to residents.