Palm Desert, California, Hotel Tax, Measure T (November 2016)
| Measure T: Palm Desert Hotel Tax |
|---|
| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
| 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 |
| Palm Desert, California |
A hotel tax measure was on the ballot for Palm Desert voters in Riverside County, California, on November 8, 2016. It was approved.
| A yes vote was a vote in favor of increasing the city's hotel tax from 9 percent to 11 percent. |
| A no vote was a vote against increasing the city's hotel tax from 9 percent to 11 percent. |
Election results
| Measure T | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| 14,346 | 74% | |||
| No | 5,041 | 26% | ||
- Election results from Riverside County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ |
To maintain 9-1-1 emergency medical/police/fire response; Palm Desert's long-term financial stability; neighborhood policing/crime prevention; water conservation; street repairs and other vital services, shall an ordinance increasing Palm Desert's short-term general rental tax from 9% to 11%, paid only by hotel guests/short-term renters, generating approximately $2,200,000 annually until ended by voters, requiring independent audits, public oversight, and local control of funds be adopted?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Palm Desert City Attorney:
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The City of Palm Desert currently imposes a 9% general tax on rent charged by the operator of any hotel, short-term rental, or similar lodging in the City of Palm Desert for guests staying fewer than thirty days. This tax is called the Transient Occupancy Tax (“TOT”) and is collected by hotel and short-term rental operators at the time rent is paid by the guests. The TOT is set forth in Chapter 3.28 of Title 3 of the Palm Desert Municipal Code. All funds collected from the TOT are deposited into the City’s General Fund. Measure T, which has been placed on the ballot by the City Council of the City of Palm Desert, proposes the adoption of an Ordinance of the City of Palm Desert which would increase the TOT from 9% to 11%. The additional 2% in revenue represents about $2 million dollars a year to the General Fund. The proposed TOT is a general tax and may be used for any general governmental purpose of the City, such as police, fire, emergency response, street maintenance, parks and recreational programs. In order for the City to adopt the Ordinance amending its Municipal Code and authorizing the increase in the rate of the TOT described above, Measure T must be approved by a majority vote of the votes cast on the measure. A “yes” vote on Measure T would adopt the Ordinance increasing the TOT from 9% to 11%. A “no” vote on Measure T would mean that the Ordinance described above is not adopted and the TOT would remain at 9%.[2] |
” |
| —Palm Desert 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]
- Robert A. Spiegel, Palm Desert Mayor
- Laurie Baldwin, IOM President/CEO Palm Desert Area Chamber of Commerce
- Neal D. Lingle, Former Palm Desert Chief of Police, Retired
- Vicky Welsh Morales, 32 year Palm Desert resident
- Sallie Fraser, School Principal
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[1]
| “ |
Vote YES on T! Maintain public safety, fiscal stability and our quality of life, WITHOUT taxing home or property owners! Measure T is a HOTEL TAX PAID ONLY BY HOTEL VISITORS when they spend the night locally. Palm Desert residents, home and property owners are NOT taxed. We live in Palm Desert for its high quality of life. YES on T will maintain vital services that make Palm Desert a desirable place to live, work, and do business! Did you know that since the State’s elimination of redevelopment in 2012, our city has lost approximately $40,000,000 every year in critical funds to create jobs, make local improvements and stimulate local economic growth? The State’s Sacramento-focused agenda continues to cost Palm Desert millions! The Chamber of Commerce and Palm Desert hoteliers support YES on T because it provides funding to protect and maintain our essential services and quality of life – WITHOUT RAISING YOUR TAXES: YES on T protects and maintains 911 emergency medical, police and fire protection/response services YES on T maintains roads and street maintenance YES on T improves water conservation YES on T maintains local control over funds that can only be used in Palm Desert. Palm Desert’s hotel tax is the lowest in the Valley. YES on T simply ensures the hundreds of thousands of tourists that come to our area – straining public safety services, impacting local natural habitats and affecting our quality of life – pay their fair share for the services they use when they spend the night at local hotels. Measure T includes fiscal accountability, with all funds subject to publicly available, annual, independent audits of city funds and expenditures.[2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[1]
- Jean M. Benson, Past Mayor and Councilmember, City of Palm Desert
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[1]
| “ |
They’re back again! In 2014, the Palm Desert voters said, by a wide margin, “NO” to a 2% TOT Tax increase which could have been spent for any purpose. Now the City Council is asking for the same tax increase which again can be used for any purpose or given away. Why you should vote “NO” again: 1. No Need – the City has over $50 million dollars in reserves. 2. TOT dollars go into the City’s General Fund and can be spent for any purpose but it cannot be dedicated to anything specific including public safety. 3. The City Council is already giving TOT back to developers! $1.8 million is pledged to the owners of the new hotel now being built on Larkspur. This begins a “bad” practice for future hotels; to demand TOT rebates which, again, comes out of the City’s General Fund. This shows a lack of fiscal responsibility – to give away your income – and ask hotel guests to pay more; many who may be potential residents. 4. A low TOT rate benefits our City as convention organizers and tourists often book in a city with lowest costs. Palm Desert has always been that city at 9% but all valley hotels ALSO charge a 3% tourist tax making ours 12%; so an added 2% would bring it up to 14%! Having served as Mayor of Palm Desert for 6 terms and as a councilmember for 32 years, I know that we always looked at tax increases on anyone as a last resort and for emergencies. This proposed tax increase is neither so NO NEED – JUST GREED. I urge a “NO” vote on Measure T.[2] |
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Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Palm Desert, California.
Recent news
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See also
External links
Footnotes
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