Indian Wells, California, Hotel Tax, Measure GG (November 2016)
| Measure GG: Indian Wells Hotel Tax |
|---|
|
| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
 DefeatedMajority required: 66.67% |
| Topic: |
| Local hotel tax Expires in: Never |
| Related articles |
| Local hotel tax on the ballot November 8, 2016 ballot measures in California Riverside County, California ballot measures City tax on the ballot |
| See also |
| Indian Wells, California |
A hotel tax measure was on the ballot for Indian Wells voters in Riverside County, California, on November 8, 2016. It was defeated.
| A yes vote was a vote in favor of authorizing the city to increase its hotel tax from 11.25 percent to 12.25 percent. |
| A no vote was a vote against authorizing the city to increase its hotel tax from 11.25 percent to 12.25 percent. |
A two-thirds (66.67%) vote was required for the approval of Measure GG.
Election results
| Measure GG | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| No | 960 | 41.18% | ||
| Yes | 1,371 | 58.82% | ||
- Election results from Riverside County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ |
To maintain Indian Wells Golf Resort long-term financial stability, shall the Indian Wells Municipal Code be amended to increase the Transient Occupancy (Hotel) Tax rate from 11.25% to 12.25% of rent charged for transient occupancy of any hotel room or similar lodging, with the 1% rate increase generating an estimated $630,000 annually that will specifically fund the operations, maintenance, and improvement of the Golf Resort, until ended by voters?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Indian Wells City Attorney:
| “ |
The City of Indian Wells currently imposes a transient occupancy tax (“TOT”), also generally known as a “hotel” tax, at the rate of eleven and one-quarter percent (11.25%) of rent paid by guests to occupy lodging space in a hotel or certain other residential lodging (collectively, “hotel”). This TOT is imposed upon occupancy of a hotel within the City for dwelling, lodging, or sleeping purposes for thirty (30) consecutive days or less. The TOT currently provides approximately $6,900,000 annually to the City’s General Fund to pay for general City services and programs such as public safety, public works, planning and building, water conservation, and community activities. The City-owned Indian Wells Golf Resort has consistently operated at a financial loss since its new clubhouse was constructed and two eighteen-hole golf courses reconstructed in or around 2006/2007. The Golf Resort’s annual operating loss last year was $799,000, and has been between $43,000 and $799,000 annually for the past five years. The Golf Resort’s operating losses are projected for the next five years to be between $330,000 and $552,000 annually. The City’s General Fund covers all such losses. Measure “GG” would increase the rate of TOT from eleven and one-quarter percent (11.25%) to twelve and one-quarter percent (12.25%) of the payment by guests to occupy lodging space. This rate increase will generate estimated annual revenues of approximately $630,000. Measure “GG” expressly provides that the 1% TOT rate increase is a “special tax”. Therefore, these new revenues must be deposited into a special City account and spent only for the limited purpose of construction, reconstruction, operation and maintenance of the Indian Wells Golf Resort. This would relieve the General Fund from paying for at least a portion of Golf Resort annual losses, thereby allowing the General Fund to pay for continued or increased general City services and programs described above. The current 11.25% TOT rate will remain a “general tax,” which revenues will continue to be spent on general City services and programs. A survey conducted by City staff indicates that TOT rates of other Coachella Valley cities range from nine percent (9%) to thirteen and one-half percent (13.5%). TOT rates of certain large business and tourist destinations in the southwest United States range from twelve point fifty-seven percent (12.57%) in Phoenix to fourteen percent (14%) in Los Angeles. Since Measure “GG” is a “special tax” the revenues from which could only be used for the Indian Wells Golf Resort as described above, Measure “GG” must be approved by a two-thirds (2/3) supermajority of the voters pursuant to California Proposition 218. A “Yes” vote on Measure “GG” will authorize the 1% TOT rate increase as a special tax. A “No” vote on Measure “GG” will not authorize the 1% TOT rate increase.[2] |
” |
| —Indian Wells City Attorney[1] | ||
Full text
The full text of the measure is available here.
Support
Supporters
The following individuals signed the official argument in favor of the measure:[1]
- Richard Balocco
- Edward Peabody
- Douglas Hanson
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[1]
| “ |
The Indian Wells Golf Resort is currently projecting a loss of $800,000 in FY 2015-2016 due in large part to the high maintenance and upkeep of our IW Golf Resort building. The former council members who planned the project assumed that long term maintenance costs would forever come from Redevelopment Agency funds which we no longer have and golf play income. It is critical that action be taken at this time to prevent further decline of the city’s General Fund. The proposed increase of 1% one percent in the Transient Occupancy Tax (TOT) is paid entirely by hotel guests without any cost or impact to our residents. Raising the TOT will have absolutely no effect on the residents. The proposed increase will keep Indian Wells Golf Resort competitive with other cities in the Coachella Valley and keep resident benefits intact. As part of the Indian Wells Golf Resort Strategic Planning process, two revenue sources were identified and proposed, first an increase in the Hotel Resort Fee that hotel guests pay or through the proposed TOT increase. Because the city has no control over the Resort Fee, we are left with the only option available and that is an increase in TOT as the proposed solution. By approving this proposed ballot measure, the Golf Resort will be able to implement its strategic plan which includes greater recreational activities for our hotel guests and residents while reducing the building maintenance cost burden on the General Fund. The addition of non-golf recreational facilities will enhance our Resort for both our residents and our hotel guests. It is important that the increase in TOT is approved to prevent a possible reduction in Resident Golf Amenities and a possible increase in Golf Fees. Let’s prevent that from happening by voting in favor of this proposal.[2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[1]
- RICHARD R. OLIPHANT, Former Indian Wells Mayor
- WILLIAM T. POWERS, Former Indian Wells Mayor Pro Tem
- DANA W. REED, Indian Wells Mayor
- MARY T. ROCHE, Former Indian Wells Mayor
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[1]
| “ |
VOTE NO on Measure GG. On August 11, at a hastily called special meeting, the City of Indian Wells placed Measure GG on this ballot – just hours before the legal deadline. Measure GG was never reviewed by the City’s Finance Committee, or any other committee. Few residents knew anything about Measure GG; many were out-of-town and only one audience member spoke. Measure GG imposes one of the HIGHEST HOTEL TAX RATES in Riverside County. Indian Wells’ hotels already struggle to fill their rooms, especially in the “off” season. Measure GG will make it even harder for them to compete against lower cost destinations such as Palm Desert and La Quinta. Supporters say Measure GG is needed to bail out our Golf Resort, which, along with public safety costs, has become a troublesome drain on our City’s finances. But, because Measure GG was rushed through, there was no time to fully explore other options. For example, an existing hotel is expanding and a brand new hotel should be on line within five years. Those two projects alone, should generate $Millions. Why can’t Indian Wells simply earmark those new dollars to the Golf Resort? While written to solve our Golf Resort problem, Measure GG does NOTHING to address the City’s increased costs of public safety. And, Measure GG prohibits the City from ever redirecting, repealing or reducing this new tax. Even if the Golf Resort no longer needs the money, Measure GG mandates another public vote to REDUCE or REPEAL it. That makes no sense, whatsoever. The City is expected to remain fiscally solvent into the next decade. If higher taxes become necessary, we can always reconsider Measure GG in 2018, or 2020. Please help protect our tourism industry; vote NO on Measure GG.[2] |
” |
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Indian Wells, California.
Recent news
The link below is to the most recent stories in a Google news search for the terms Indian Wells Local hotel tax Measure GG. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
| |||||
