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City of Capitola Transient Occupancy Tax (Hotel Tax), Measure M (November 2014)
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A City of Capitola Transient Occupancy Tax (Hotel Tax), Measure M ballot question was on the November 4, 2014 election ballot for voters in the city of Capitola in Santa Cruz County, California. It was defeated.
If approved, Measure M would have authorized the city to increase its hotel tax from 10 percent to 11 percent.[1]
Election results
| Capitola City Measure M | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
 No | 1,565 | 53.84% | ||
| Yes | 1,342 | 46.16% | ||
Election results via: Santa Cruz County Elections Office
Text of measure
Ballot question
The question on the ballot:[1]
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Shall the City of Capitola adopt an ordinance amending Section 3.32.030 of the Municipal Code raising the transient occupancy tax rate from 10% to 11%?[2] |
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Impartial analysis
The following impartial analysis was prepared for this measure:[1]
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This ballot measure, if adopted by City voters, would amend the Capitola Municipal Code by raising the transient occupancy tax rate from the current rate of 10 percent to 11 percent. The transient occupancy tax, also referred to as the "Visitor Service Fee" in the Capitola Municipal Code, is a tax paid by hotel and motel guests who spend fewer than 30 consecutive days in a hotel or motel in the City. The tax is on the room rent paid. For example, a hotel guest currently pays $10.00 tax per night on a $100.00 hotel room. If the ballot measure is adopted, the hotel guest would pay $11.00 tax per night on a $100.00 hotel room. All of the City's transient occupancy tax revenue is deposited into the City's General Fund and used by the City for the provision of municipal services to City residents and visitors and for the construction and maintenance of capital improvements within the City. Because the proposed transient occupancy tax rate increase would be imposed for general municipal governmental purposes, the ballot measure proposes a "general tax" as defined by Article XIIIC of the California Constitution. Accordingly, for the ballot measure to be adopted, it must receive a simple majority "yes" vote. This ballot measure has been placed on the ballot by the Capitola City Council.[2] |
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| —John G. Barisone, Capitola City Attorney[1] | ||
Support
In general, supporters of higher hotel taxes argued that this type of tax is good because it requires visitors to the city to contribute some revenue to cover the city services they used while staying, such as public safety, parks and road and infrastructure maintenance. They also argued that the tax is a great way to create additional revenue for the city without increasing taxes for residents, since the tax is mainly paid by tourists and visitors.
Opposition
In general, opponents of increased hotel taxes were concerned the tax could hurt the tourism industry by making hotels outside the city cheaper and giving them a competitive advantage over hotels inside the city limits.
See also
- Hotel taxes in California
- Local hotel tax on the ballot
- Santa Cruz County, California ballot measures
- November 4, 2014 ballot measures in California
External links
Footnotes
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