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City of Indio Hotel Tax, Measure O (November 2014)

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A City of Indio Hotel Tax, Measure O ballot question was on the November 4, 2014 election ballot for voters in the city of Indio in Riverside County, California. It was approved.

Upon approval, Measure O set the city's transient occupancy tax at a uniform 13 percent for all overnight lodging establishments. The revenues from the tax were designated to maintain community safety and quality neighborhoods through police and emergency services, youth services and parks.[1]

Election results

Riverside County Measure O
ResultVotesPercentage
Approveda Yes 9,157 79.49%
No2,36320.51%
Election results from Riverside County Elections Office

Text of measure

Ballot question

The question on the ballot appeared as:[1]

To maintain community safety / quality neighborhoods by retaining police, firefighters, and paramedics; replacing outdated fire trucks / ambulances; and maintaining 9-1-1 emergency response times, youth / senior services, parks and other general city services shall an ordinance be adopted updating Indio’s existing transient occupancy tax, paid only by overnight hotel / lodging guests, be set at a uniform thirteen percent for all hotels (including campgrounds/vehicle parks), with annual independent audits? [2]

Impartial analysis

The following impartial analysis was prepared for Measure O:[1]

The City of Indio’s current transient occupancy tax (TOT) is I0% of the room charge that hotel and lodging facilities impose on their transients (guests) and has been in effect since April 1, 1989. TOT is paid by persons staying at such facilities for a period of thirty (30) days or less and is not paid by property owners.

Measure “O” will increase the TOT from 10% to 13% for hotel and lodging facilities with less than 50 rooms and on occupancies in any campground or recreational vehicle park. Transients in hotel and lodging facilities with 50 rooms or more already pay a 13% “surcharge” made up of 10% TOT, a 2% assessment levied by a multi-jurisdictional Tourism Business improvement District, and a 1% assessment levied by a multi-jurisdictional Tourism Marketing District. Measure “O” will provide uniformity of among hotel and lodging facilities regardless of the number of rooms by ensuring that transients will pay either 13% in TOT or 10% in TOT plus 3% in assessments. If the City ceases participating in either the improvement or marketing district, then the TOT collected by lodging facilities with 50 or more rooms will increase in accordance with the reduction in assessments collected. Measure “O” also clarifies the definition of hotels to include campgrounds and provides a definition of campgrounds.

If Measure “O” is approved, persons staying at hotels and lodging facilities regardless of the number of rooms, including campgrounds or recreational vehicle parks would pay $13.00 in surcharges for each $100 of the room charge per day (either $13.00 in TOT or $10.00 in TOT and $3.00 assessment).

Revenue generated by the TOT will continue to be deposited into the City’s General Fund and may be used to continue to fund general City services such as police, firefighters, paramedics, senior and youth services and parks. If Measure “O” is approved, it is estimated that TOT revenue will increase by approximately $514,656 per fiscal year. On July 16,2014, the City Council unanimously approved Resolution No. 9725 to place this Measure on the ballot.

A “Yes” vote on Measure “O” is a vote in favor of increasing the TOT from 10% to 13% and will result in uniformity among all hotel and lodging facilities regardless of the number of rooms, including campgrounds and recreational vehicles. A “No” vote on Measure “O” is a vote to maintain the TOT at the existing rate of 10% for hotel and lodging facilities including campgrounds and recreational vehicle parks except those persons staying at hotel and lodging facilities with 50 or more rooms, will continue to pay 10% in TOT and 3% in assessments. This Measure “O” will be adopted if it is approved by a majority of the voters voting on this Measure.[2]

—Roxanne Diaz, Indio 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

External links

Footnotes

  1. 1.0 1.1 1.2 1.3 Riverside County Vote Info website, accessed October 24, 2014
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.