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Measure Q
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Analysis of Measure
Q |
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Shall the City of Santa Cruz adopt an ordinance amending Section 3.28.030 of the Municipal Code by imposing a special one percent (1%) transient occupancy tax and dedicating the revenues from that special tax to the Santa Cruz County Conference and Visitors Council? Full text of Ballot Measure Q An Ordinance of the City of Santa Cruz Amending Section 3.28.030 of the Santa Cruz Municipal Code pertaining to the City of Santa Cruz Transient Occupancy Tax BE IT ORDAINED By The City Of Santa Cruz As Follows: Section 1. Section 3.28.030 of the Santa Cruz Municipal Code is hereby amended to read as follows: Section 3.28.030 Tax Imposed. (a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a general tax in an amount of ten percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment by the operator to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax is not paid to the operator of the hotel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance. The general tax revenues shall be placed in the City’s general fund (b) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a special tax of one percent of the rent charged by the operator on the same terms and conditions set forth in subsection (a). The special tax revenues shall be placed in a segregated “Conference and Visitors Promotion Fund” account. (c) All tax revenue deposited in the Conference and Visitors Promotion Fund shall be used exclusively for the promotion of tourism in the County of Santa Cruz and for no other purpose. In order to achieve this objective, the City shall annually contract with the Santa Cruz County Conference and Visitors Council, a non-profit corporation doing business in the City and County of Santa Cruz established for the purpose of promoting tourism within the City and County. The City shall require the Santa Cruz County Conference and Visitors Council to submit an annual accounting for the use of funds provided pursuant to this section. The annual accounting, at a minimum, shall set forth with particularity and in accordance with generally accepted accounting principles the amount and nature of all expenditures made with Conference and Visitor Promotion Fund moneys. The Santa Cruz County Conference and Visitors Council shall make all of its books, records, and accounts which in any manner relate to the expenditure of Conference and Visitors Promotion Fund moneys available to the City’s Finance Director for examination or audit upon reasonable notice. In addition, the City shall require annual reports from the Santa Cruz County Conference and Visitors Council designed to demonstrate the achievement of goals relative to the promotion of tourism in the City and County. The City’s obligation to annually contract with the Santa Cruz County Conference and Visitors Council shall be contingent upon that agency’s satisfactory performance, which shall be demonstrated by annual financial audits and periodic, independent assessments of the Santa Cruz County Conference and Visitors Council’s performance in achieving approved goals and objectives. Such independent assessments shall be conducted at least every three years, shall be paid for by the Santa Cruz County Conference and Visitors Council, and shall be conducted by qualified professionals approved by the City. Said obligation shall additionally be contingent upon compliance with all applicable laws pertaining to the operation and governance of non-profit corporations. Section 2. This ordinance shall be considered as adopted upon the date that the vote is declared by the City Council, and shall go into effect 10 days after that date. |
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Impartial Analysis By City Attorney Measure Q This ballot measure, if adopted by City voters, would amend the Santa Cruz Municipal Code by raising the transient occupancy tax rate from the current rate of 10 percent to 11 percent. The transient occupancy tax 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. The ballot measure would require the City to dedicate the tax revenue received by the City as a result of the tax rate increase to a special segregated “Conference and Visitors Promotion Fund” account. All tax revenue deposited in the Conference and Visitors Promotion Fund account would be used exclusively for the promotion of tourism in the County of Santa Cruz. In addition, the ballot measure would require the City to annually contract with the Santa Cruz County Conference and Visitors Council and the money deposited in the Conference and Visitors Promotion Fund would be disbursed periodically to the Santa Cruz County Conference and Visitors Council for its use in promoting tourism within the City and County. The ballot measure would also require the Santa Cruz County Conference and Visitors Council, as a condition to receiving this funding from the City, to submit an annual accounting demonstrating that the funds provided by the City have been used for their intended purpose. Currently 100% of transient occupancy tax revenues, computed at the rate of 10 percent, are dedicated to the City’s General Fund and General Capital Improvement Fund. Because the proposed transient occupancy tax rate increase would be imposed for a specific purpose, the ballot measure proposes a special tax as defined by Article XIIIC of the California Constitution. Accordingly, for the ballot measure to be adopted, it must receive a two-thirds “yes” vote. s/ John G. Barisone, City Attorney |
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Fiscal Analysis by Director of Finance Measure Q The transient occupancy tax is paid by hotel and motel guests staying fewer than 30 consecutive days in the City. This ballot measure would increase the tax rate by 1% for a total new tax rate of 11%. The amount generated by the transient occupancy tax in the City varies from year to year depending upon the number of visitors and room rates. For the current fiscal year, FY 2002/2003, the current 10% tax rate is expected to generate $3.3 million dollars from total hotel and motel room rents of $33 million. Therefore, an additional 1% tax rate would generate an additional $330,000. Further, this ballot measure would designate the additional 1% tax receipts be earmarked for tourism promotion and deposited in a “Conference and Visitors Promotion Fund”. The proceeds from the additional 1% tax rate would be dedicated to the Santa Cruz County Conference and Visitors Council who would promote tourism pursuant to an annual contract with the City of Santa Cruz. The City of Santa Cruz currently funds a portion of the Santa Cruz County Conference and Visitors Council annual budget pursuant to an annual contract for tourism promotion. Funding for this purpose comes from the City’s General Fund. The amount budgeted for the Santa Cruz County Conference and Visitors Council for the current fiscal year, FY 2002/2003, is $396,688. If Measure Q passes the $396,688 currently budgeted for the Santa Cruz County Conference and Visitors Council would then be available annually from that point forward for other community priorities. s/ David P. Culver Finance Director |
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The statements contained on this page are the fiscal and impartial analyses of Measure Q. If you desire a copy of the measure, please call the Santa Cruz County Elections Department at 454-2060 or the City Clerk's Office at 420-5030 and a copy will be mailed at no cost to you, or visit www.votescount.com |
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