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Measure G Bed Tax Rate City of Fortuna 1328 / 48.75% Yes votes ...... 1396 / 51.25% No votes
See Also:
Index of all Measures |
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| Infomation shown below: Impartial Analysis | Arguments | | |||||
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Shall the City of Fortuna Municipal Code Number 3.12.030, the currently assessed transient occupancy tax (bed tax for motels and RV parks) of eight percent (8%) be amended to allow the City to increase such tax up to a maximum of ten percent (10%)?
If adopted, the actual tax rate as set forth in Fortuna Municipal Code Section 3.12.030, or its successor would be established from time-to time by the City Council, and could fluctuate, but never exceed ten (10%) percent. The transient occupancy tax is a general tax and all revenue generated by the tax would go to provide essential governmental services. It is estimated that the tax presently generates $179,000 annually, and that the tax would generate an additional $21,000 for each one (1%) percent it is increased. The measure must be approved by a majority of the voters. THE ABOVE STATEMENT IS AN IMPARTIAL ANALYSIS OF MEASURE G. IF YOU DESIRE A COPY OF THE FULL TRANSIENT OCCUPANCY TAX ORDINANCE, PLEASE CALL THE CITY CLERK'S OFFICE AT 725-7600 AND A COPY WILL BE MAILED AT NO COST TO YOU.
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| Arguments For Measure G |
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The Fortuna City Council seeks voter authorization to
set the maximum rate for the Transient Occupancy Tax at ten percent (10%).
The Transient Occupancy Tax, often referred to as "bed tax", is money paid
as tax on rental of motel rooms and recreation vehicle (RV) park sites.
Most bed tax money is collected from business travelers, vacationers and
other travelers to or through the area.
The current bed tax rate in Fortuna is eight percent (8%). Passage of Measure G would allow the City Council the flexibility to increase this amount to a level comparable to the unincorporated area of Humboldt county (10%) and other cities in the county. Under Measure G, the City Council would have the option of leaving the present bed tax rate at eight percent or increasing the rate to nine or ten percent. The rate could also be decreased by the Council should conditions warrant. One percent in bed tax dollars equals approximately twenty one thousand dollars ($21,000) in revenue to the City. The City Council is responsible for allocating the bed tax revenues as part of the annual budget process. A percentage of the present bed tax dollars are spent on tourism and promotion. The remainder of the bed tax dollars are used to help fund police services, parks and recreation for the citizens of Fortuna. In effect, the bed tax is used to encourage more tourism, thereby increasing revenues, and to offset the impacts of tourism on city facilities and services. Passage of Measure G would allow the City Council the discretion to increase revenues generated by bed tax and to use the monies to improve tourism marketing efforts, community promotion and to provide other services for the community. The Fortuna City Council urges your support of this Measure. Argument prepared by City of Fortuna, Mayor pro tem, Clifford B. Chapman Sr.
(No arguments against Measure G were submitted) |
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Created: February 16, 1999 18:54
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