League of Women Voters of California Education Fund
	Santa Barbara County, CA November 4, 2008 Election
	Measure B2008 Increase Transient Occupancy Tax City of Solvang Majority Approval Required Fail: 1159 / 49.28% Yes votes ...... 1193 / 50.72% No votes See Also: Index of all Measures

Arguments For Measure B2008

Arguments Against Measure B2008

Tourism is Solvang's major industry and provides more than half of the city revenues for administration, services and maintenance. Included in the tourism dollar is the Transient Occupancy Tax (TOT) levied on overnight guests. The tax is collected from guests by all Inns, Hotels, Motels, and Bed and Breakfast owners and/or operators and paid to the City of Solvang. The City currently receives a 10% tax on the cost of a guest room, which translates to about 2.4 million dollars in annual revenue to the general fund. Measure B will increase Solvang's TOT to 11% of the cost of a guest room resulting in a projected increase of about $240,000 to be deposited into the general fund. The purpose of increasing the TOT from 10% to 11% is to fund city general fund expenditures. Vote YES for Measure B No Cost to Local Residents (Unless guest of hotel) Supported by Solvang's Hospitality Industry Supported by the Solvang Chamber of Commerce Increases City Revenue Vote Yes on Measure B Linda C. Jackson, Mayor Jim Richardson, Council Member Rebuttal to Arguments For Tax increases must be justifiable, not just to raise more tax dollars. The City Council states that due to the fact that Solvang Residents will not pay the proposed TOT tax increase that it is O.K. to place this burden on Solvang Tourists who sleep over in our Hotels, Motels, Bed & Breakfast and Resorts, for which they currently pay approximately 2.4 million dollars a year. The TOT Tax increase may have been justifiable as a Special Tax specifically to support Tourism for which the Tourist would be assured some benefit. The Council initiated the TOT tax increase as a Special Tax earmarked for tourism but changed horses in mid-stream as were concerned about obtaining a 2/3 majority vote, However, they wanted the additional revenue and set their sights on a TOT General Tax instead which only required a 50% majority vote, Please, tell the City Council they made a mistake in going for a General TOT Tax by VOTING NO on MEASURE B2008 and to put more faith in the Voter. Thank you, Leo Mathiasen, Retired Solvang City Administrator

There should be a compelling need and reason to propose tax increases and trust the Voter to agree. The City Council in placing a TOT (bed tax) on the ballot has opted to only trust 50% of the Voters to pass the measure and place it's proposed revenue in the City's General Fund rather than seek 67% favorable vote to designate the funds for Tourism, the City's prime industry and was the initial driving force behind the tax measure. The tax increase, if passed, is projected to raise $240,000 a year for the General Fund for which need has not been demonstrated. Given the fragile state of the economy, 2008 is not a year to raise any taxes and further burden the Tourist and Tourist industry, 1% may not seem like much but with all other cumulative cost increases may just keep some of Solvang's Hotel I Motel rooms empty causing a domino effect on retail, bakery, food establishments, etc. also, the funds to support the major cost of City services such as Police, Fire, Recreation, etc. Regardless of the intent of this current Council, which has supported tourism, there is nothing to bind future Council's without some official citizen directive as to finance of Tourism, Solvang's financial "life blood". Please, vote NO on Measure B, don't let the city Council extract another $240,000 from our tourists just to enhance it's General Fund. Leo Mathiasen, Retired Solvang City Administrator Rebuttal to Arguments Against It is pure speculation with no proof offered that an increase in the TOT would reduce motel occupancy, Recorded evidence suggests that in 1995 when TOT was increased 2% there was no impact upon our occupancy of hotel rooms. Two compelling reasons to charge guests a little more for their hotel rooms are (1) to sustain Solvang's good quality of life, and (2) to tell others about our good quality of life. When we tell our story we add to property values and support local business. Linda C. Jackson, Mayor Jim Richardson, Council Member