League of Women Voters of California
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Measure N Continuation of Transit Occupancy Tax City of Millbrae Tax Ordinance - Majority Vote Required 2,637 / 76.8% Yes votes ...... 798 / 23.2% No votes
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Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | | |||||
"Shall Ordinance No. 573 adopted by the Millbrae City Council on June 11, 1991 which increased from 8% to 10% the Transient Occupancy Tax charged to persons for the privilege of occupancy in any hotel or motel in the City of Millbrae be continued in full force and effect?"
The City estimates that the Hotel Tax revenues from this 2% increment generate approximately $950,000 per year. These revenues go into the City's general fund for general governmental purposes to support police, fire, public works, parks and recreation, library, code enforcement, and capital improvements in the City. The City Council submits this measure to the electorate to ensure that the current 10% tax rate is in compliance with state law, as recently interpreted by the California Supreme Court. Because the revenues from the Hotel Tax are placed in the City's general fund for general City government purposes, a majority vote of the City's voters voting in this election is required to approve the measure. If the measure does not pass, the Hotel Tax would be reduced to 8%.
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General Links
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Arguments For Measure N | Arguments Against Measure N | ||
A yes vote on Measure N is a vote to maintain Millbrae's hotel tax at its current 10% level. Measure N will not increase the existing 10% hotel tax. It will simply provide voter confirmation to continue the hotel tax at the same level it has been since 1991.
In 1991, when the Council set the rate, it was understood that voter confirmation was not required. However, recent court rulings have led the City Council to believe it would be prudent to place the item before the voters for confirmation. Approval of Measure N will keep tax revenues fairly distributed to all those who use our city services. Approval of Measure N will insure that the thousands of hotel visitors who travel our streets, frequent our restaurants and retail areas, enjoy our parks and open space, as well as rely daily on our police, fire and medical response services, pay their fair share. Approval of Measure N will prevent a loss to Millbrae of $950,000 in hotel tax revenue per year. Failure to approve Measure N would cause severe budget problems and increase Millbrae's dependency on revenues collected from property tax payers to fund essential city services. Measure N will keep the hotel tax at the same level as twelve other San Mateo County cities and below the 14% rate currently charged in San Francisco. The 1991 increase in the hotel tax from 8% to 10% has made it possible for Millbrae to hire more police officers and fire fighters, modernize our Police and Fire Stations, as well as improve Millbrae's parks and streets. It is important that we ensure our revenue structure continues to allow for necessary public safety, parks and recreation and maintenance services. Join with all Millbrae City Council members in supporting Measure N.
/s/ John Wilms
/s/ Victor B. Graff
/s/ Keith W. Larsen
/s/ Robert H. Treseler
/s/ John Falsarella
"San Francisco's TOT is 14%." That's like standing next to Luciano Pavarotti proclaiming "Look how thin I am!" In a study of high taxes on visitors, the World Travel & Tourism Council ranked San Francisco tenth highest of the 52 cities studied. Comparisons: Portland's hotel tax is 6%. Oregon's average is 7.3%. Hawaii's is 7.25%. Washington's standard hotel tax is only 2% (though special taxes push the average to 5%). California's average TOT was also below 10% until 1992, when cities and counties began a decade of tax hikes. Lawbreakers: The Supreme Court found 1986's Prop 62 to be constitutional in 1995 (Santa Clara County v. Guardino), affirming that such taxes, raised without voter approval, are indeed illegal. Millbrae nevertheless thumbed its nose at the voters and the Court and continued to collect the 2% overcharge. The city is bowing to the law only now because a new Supreme Court decision (HJTA v. La Habra) has clarified eligibility to sue for continuing to overcharge taxpayers. The illegality of the tax itself was established 6 years ago. Don't reward these scofflaws with your approval. Vote 'NO'.
/s/ John J. Hickey
/s/ Margret Buckley Schmidt
/s/ Christopher VA Schmidt
| A Moral Question: Is it OK to steal from your neighbor's houseguests if you can get away with it?
The City of Millbrae thinks so - at least when guests stay in local hotels. Like an embezzler, the city pads hotel bills with a 10% transient occupancy tax ('TOT') which is no more just nor honest than a Mafia protection racket. And taxing a hotel guest who can't vote against him is the perfect crime, from a politician's point-of-view. A Legal Question: If the voters passed an initiative (Prop 62 in 1986) which required voter approval of such taxes, was it OK to ignore the law and raise the TOT without a vote? The City of Millbrae thought so, and stalled for 10 years before putting this tax on the ballot. Don't encourage this kind of opportunistic pickpocketing. Vote 'NO' and help put a politician on the straight and narrow path.
/s/ John J. Hickey
/s/ Margret Buckley Schmidt
/s/ Linden Hsu
/s/ Christopher VA Schmidt
Continued collection of the full 10% hotel tax is critical to maintaining the services enjoyed by Millbrae residents, businesses and visitors. Failure of Measure N would cost the Millbrae General Fund Budget nearly $1 million and require deep cuts in essential services. It is illogical to suggest that we return to 1991 financing of City services. We are all aware of the fact that costs have risen greatly since 1991. Suggesting that it is more appropriate to compare Millbrae's hotel tax rate against cities in the northwest than against San Francisco is absurd. Millbrae's cost of doing business is certainly more comparable with San Francisco, a few miles to the north. The Council adopted the 10% tax rate in 1991 in full compliance with the law. Because of a recent decision of the California Supreme Court, cities and counties throughout the State will be asking voters to approve similar precautionary measures. Please join with us in voting yes on Measure N.
/s/ Eric Mertl
/s/ Jennifer Gingrass
/s/ Denis Richardson
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