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Measure H Continuation of 2% Hotel Tax Surcharge City of San Francisco 180,129 / 83.60% Yes votes ...... 35,233 / 16.30% No votes
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Shall the City continue to collect the 2% hotel tax surcharge?
PRINCIPAL PROVISIONS: Proposition H would allow the City to continue the current hotel tax rate of 14%. This ballot measure is required in response to provisions of State Proposition 218 passed in November 1996. Proposition 218 requires voter approval of any taxes passed or increased after January 1, 1995. Because the hotel tax was increased in August 1996, this tax increase needs voter approval for continuation after November 8, 1998. The City has charged a base tax of eight percent on the rental of hotel rooms since 1986. In 1993 additional taxes called "surcharges" were passed increasing the hotel room tax to 12 %. These taxes are not affected by Proposition 218. However, in 1996, the City imposed an additional two percent surcharge on the hotel tax. The money raised by the 1996 surcharge goes into the General Fund and can be used for any city purpose. This two percent surcharge needs to be re-approved by voters to be continued after November 1998. Propositions H would amend Part III, Article 7 (Tax on Transient Occupancy of Hotel Rooms), of the San Francisco Municipal Code by adding Section 502.6-1, which would allow the continuation of this two percent surcharge.
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