Impartial Analysis of Measure Q Showing the Effect of the Measure on Existing Law and the Operation of the Measure

The City of Manteca currently collects a supplemental transient occupancy tax from hotel/motel occupants (those occupying hotel/motel rooms within the City of Manteca for fewer than 30 days). The supplemental transient occupancy tax is currently charged in the amount of 4% of the cost of the hotel/motel room. The guest pays the tax to the hotel/motel and the entity remits the tax to the City of Manteca. The City of Manteca deposits supplemental transient occupancy tax revenue into its General Fund, which supports a number of City services, including police and fire protection and youth and senior recreation activities. A complete description of the supplemental transient occupancy tax is located at Chapter 3.17 of the Manteca Municipal Code, which is available on the City's website at "http://www.ci.manteca.ca.us".

In May of 1990, by City Council-adopted ordinance, a supplemental transient occupancy tax increased the total tax from 5% to 9% of the hotel/motel room charge. The tax is considered a general tax. At the time of the tax increase in 1990, voter approval was not required for general tax increases. Proposition 218 required that any general tax imposed, extended or increased from January 1, 1995, through November 6, 1996, receive voter approval. Given the language of Proposition 218, it was determined that general tax increases adopted before January 1, 1995, did not require voter approval. However, since that time, court decisions have created uncertainty as to whether a general tax increased over ten years ago now requires voter approval. Because transient occupancy tax revenues support a variety of essential City services, the City of Manteca has deemed it prudent to place the tax on the ballot for voter approval. City staff estimates that a reduction in the supplemental transient occupancy tax would result in a loss of approximately $186,000 a year to the City's General Fund. This is approximately one percent (1%) of the City of Manteca's annual General Fund tax revenue. The Manteca City Council seeks voter ratification of this general tax in the amount of 4% of the hotel/motel room charge. If ratified, the City's current supplemental transient occupancy tax in the amount of 4% of the hotel/motel room charge will remain in place. No change to the City of Manteca's Municipal Code implementing the current transient occupancy tax will be necessary.

Adoption of the proposed measure (Measure Q) will continue collection of the City's existing supplemental transient occupancy tax at the rate of 4% of hotel/motel room charges.

The above statement is an impartial analysis of Measure Q. If you desire a copy of the measure, please call the Manteca City Clerk at 209-239-8417 and a copy will be mailed at no cost to you.

Modesto Bee

• Manteca to vote on existing tax - 02/15/02

In 1990, our city saw a need to raise the TOT from 5% to 9%. The increase in the TOT tax provided more general tax revenue. That revenue in turn helps to pay for essential city services like police and fire protection. The benefit of this tax to all of us is that we are getting increased emergency services protection thanks to those visitors. We get more services, but we don't pay for it.

Because of recent court actions we as voters need to tell the city that it is okay to keep collecting that additional 4% increase. We as voters need to say that we like the revenue generated that helps pay for police and fire services. We also realize that if this measure doesn't pass, we can anticipate a $186,000 decrease in general fund money and that will negatively impact our current level of services.

This is not an increase in your taxes. We as voters are confirming that our city had our best interest in mind in 1990 and we want to continue to collect the TOT money.

Pretty good deal for us as citizens, visitors pay the tax we don't, but we get the benefit of the money for emergency services.

This measure is supported by your local police and fire associations, Convention & Visitors Bureau, and those who collect the tax for use, the Manteca Hotel/Motel Owners Associates.

Submitted by:

/s/ Franco Torrice, Manteca Firefighters Local #1874
/s/ Rudy Fowler, Manteca Police Employees Assoc.
/s/ Zeb Hammonds, Past President, Manteca Employees Assoc.
/s/ Chris Kohl, Manteca Firefighter Assoc. Pres.

There is no justification why visitors should have to pay into any city's, including Manteca, general fund.

Manteca spend thousands of dollars promoting tourism. Tourists spend their hard earned money eating, shopping, sleeping and enjoying the facilities where they are staying. This spending helps the economy of Manteca. What does the city of Manteca offer tourists?

Government officials and staff to justify the tax state local police and fire departments respond to accidents on freeways and roads. However, commuters and locals use these same roads and would also use these departments should they have an accident. These groups of people pay no transient tax.

Reading the uses of the transient occupancy tax for the city's general fund it appears Manteca's budget depends on this tax. To base a budget on such an iffy income seems totally irresponsible. What happens if people can't afford to travel and stay in hotels and motels?

This tax seems like just another way to gouge the innocent people passing through.

Vote NO and send a strong message to government we are tired of being taxed. An additional four per cent on top of the already allowed five percent allowed transient occupancy tax, state tax, income tax, registration tax, property tax, income tax, etc. enough is enough. City's and government tighten your belts, live within your budget and let the people enjoy some of the money they earn.

Submitted by:

/s/ Michael Ochoa
/s/ Karla Reichelt
/s/ Jerome VanderWeff
/s/ Latonya Randolph