City of Banning Hotel Tax, Measure L (November 2009)
Voters were asked to increase the city's hotel tax from 6% to 12%. The tax will end in ten years, according to the terms of the ballot measure. The city believes that the added tax will generate about $275,000 annually for the city.
The vote on the city council to refer it to the ballot was 4-1. Councilwoman Barbara Hanna voted against it because of the clause that would end the tax after ten years. The city council voted 5-0 to declare a city fiscal emergency.
Banning has a population of about 23,500 residents.
- These final, certified, results are from the Riverside County elections office.
According to the city council, at the time of the vote on Measure L, the City of Banning was in financial distress. They had approved $5 million in cuts to the 2009-2010 fiscal year budget they had hoped to pass. The council also voted 5-0 to declare a fiscal emergency, enabling it to put the measure on the ballot.
There are about five hotels and motels in Banning. Hiral Patel, who owns one of them, told the city council that imposing a higher hotel tax would put all the city's hotels and motels at a competitive disadvantage.
The editorial board of the Press-Enterprise endorsed Measure L, saying, "This measure provides a fairly painless way for Banning residents to bolster city finances."