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San Mateo County, CA November 3, 2009 Election
Measure O
Transient Occupancy Tax
City of South San Francisco

Majority Approval Required

Pass: 4,326 / 77.6% Yes votes ...... 1,246 / 22.4% No votes

See Also: Index of all Measures

Results as of Dec 29 12:09pm, 100.0% of Precincts Reporting (32/32)
27.8% Voter Turnout (77,340/277,759)
Information shown below: Official Information | Impartial Analysis | Arguments |

To provide funding for essential public services in South San Francisco, including parks, recreation, police, fire, streets, and libraries, shall the existing transient occupancy tax ("hotel") tax, paid by hotel guests and collected by hotel operators, be increased by 1% and modernized by amending the administrative provisions of the tax to ensure full collection for online reservations and to apply the tax to separate charges for vehicle parking for hotels?

Official Sources of Information

Impartial Analysis from the City Attorney of South San FRancisco
The City of South San Francisco currently taxes the use of facilities at hotels, motels, and "bed and breakfast" businesses, including rooms used for overnight accomodations. A hotel guest pays the tax and the hotel operator collects the tax and forwards it to the City. The tax is called a "transient occupancy tax" (TOT) and is frequently referred to as a "hotel tax." The current TOT rate is 9% of the amount that a hotel charges for the use of its facilities. Measure O would (a) increase the TOT by 1% resulting in a total rate of 10%; (b) apply the tax to separate charges for vehicle parking at hotels' and (c) amend provisions of the City's Municipal Code to ensure full collection of the TOT when a third party arranges for the rental of a hotel's facilities.

The additional tax revenue generated by the increase in the TOT rate would be deposited in the City's general fund and used to fund general public services, including parks and recreation, police, fire, streets, and libraries as determined by the City Council. As such, the 1% increase is considered a "general tax."

Measure O would make several other changes to the TOT ordinance. First, it would apply the TOT to any charges levied by hotels for vehicle parking when the hotel charges for parking separately. Second, it would clarify that when third parties arrange for the rental of hotel facilities, the TOT should be calculated based on the full amount that is charged to the hotel guest for the use of those facilities and that hotel operators are responsible for collecting and remitting to the City the total of the tax owed. That change is partly intended to ensure that the TOT is properly collected for room reservations using third party internet-based reservation services. Finally, the proposed ordinance would authorize the City Council to amend Chapter 4.20 to ensure that the TOT is imposed and collected on the total amount charged for the use of hotel facilities, provided that any amendment that would increase the tax rate or impose the TOT on anyone currently exempt would be required to be sumbitted to and approved by the voters of South San Francisco before it could take effect.

The existing TOT was last increased in 2004 to the current rate of nine percent (9%). Additionally, the voters have previously approved a special tax of $2.50 per room night to fund the acquisition, renovation, maintenance and operation of the South San FRancisco Conference Center. Measure O will not modify the existing Conference Center special tax.

A "yes" vote is to approve the ordinance increasing the hotel tax by one percent (1%) and authorizing the additional amendments described herein.

A "no" vote is a vote against increasing the tax and the proposed amendments.

Measure O would be approved if it received a majority of "yes" votes.

 
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Arguments For Measure O Arguments Against Measure O
Like most of its neighboring communities, South San Francisco has a "hotel tax", which is paid by hotel guests as part of their bill. Measure O would increase the tax from 9% to 10% of the room rate, bringing it in line with many other Peninsula cities. It would also ensure that the tax is collected correctly for on-line reservations and on any charges for overnight parking at hotels, if billed separately. The revenue generated by the slight tax increase and other changes would help the City maintain vital community services such as police, fire, library services, park maintenance, street and sidewalk maintenance, and recreation programs.

The City of South San Francisco has been hit hard by the national recession, seeing its revenue drop dramatically over the past year. The City Council has responded by cutting spending by over $7.0 million, which is more than 10% of its budget. The cuts include City employees foregoing wage increases for a second year, and on-going negotiations to modify benefit packages for additional savings.

Those reductions affect all departments and many important services. The community will see degradation in parks and City facilities, the elimination of the Police-school liasion program, delays in responding to non-urgent street and sidewalk repairs, and a reduction in library hours and programs.

The City has done everything it can to cut costs without sacrificing public safety and the community's investment in public infrastructure. To ensure its ability to maintain essential services, the City must also increase revenue. Measure O will provide a needed boost in income while taxing only hotel guests.

Passage of this measure will improve the lives of South San Franciscans by helping the City to continue to provide crucial public services. Vote YES on Measure O!

/s/ Rich Garbarino, City Councilmember

/s/ Kevin Mullin, City Councilmember

/s/ Mark Nagales, Parks and Recreation Commissioner

/s/ Maria Martinucci, CEO, South San Francisco Chamber of Commerce

/s/ Jim McGuire, General Manager, Best Western Grosvenor

None Submitted


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Created: December 29, 2009 12:09 PST
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