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Smart Voter
Santa Clara County, CA November 8, 2011 Election
Measure C
Transient Occupancy Tax
City of Cupertino

Ordinance - Majority Approval Required

Pass: 8,088 / 82.49% Yes votes ...... 1,717 / 17.51% No votes

See Also: Index of all Measures

Results as of Nov 14 9:34am, 100.0% of Precincts Reporting (26/26)
Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text

To maintain and protect general city services, including library services, neighborhood police patrols, rapid 9-1-1 emergency response times, city street maintenance, current levels of police officers and school traffic safety and crossing guards, shall the City of Cupertino increase the existing transient occupancy tax paid by hotel guests from 10% to 12% with proceeds placed in the City's General Fund for local use, requiring annual audits and public expenditure review?

Meaning of Voting Yes/No
A YES vote on this measure means:
A Yes vote favors increasing the hotel tax to 12%.

A NO vote on this measure means:
A No vote favors leaving the hotel tax at 10%.

Impartial Analysis from Cupertino City Attorney
Effective January 1, 2012, Measure C would increase the City's Transient Occupancy Tax, commonly known as the "hotel tax," from 10% to 12%. The hotel tax is charged by the City to guests at hotels located in Cupertino. The tax rate is computed by multiplying the room rate charged by the hotel operator by the tax rate percentage. For example, a guest paying a $100 hotel rate for one night stay would see their hotel tax increase from $10 to $12 if this measure is adopted. Guests with occupancies longer than 30 consecutive days are not subject to the tax. The tax is expressly authorized by State law. The tax was first imposed in 1965 and has been set at the rate of 10% since 1991.

The City estimates that the annual hotel tax revenues generated from the incremental increase will be approximately $450,000. Revenues from the hotel tax are paid into the City's general fund. The revenue may be used by the City to fund any general fund purpose, including police (Sheriff), 911 emergency response, public works, capital improvements, maintenance of city streets, parks and recreation and for the library.

Hotel tax rates vary around the County from a low of 9% to a high of 14%. This tax measure imposes a general tax and will take effect if passed by a simple majority (50% +1) of voters casting a vote on the measure. If the measure does not pass, the hotel tax would remain at 10%.

Prepared by:

s/ Carol Korade
City Attorney

The above statement is an impartial analysis of the proposed ordinance. If you desire a copy of the ordinance, please call the Cupertino City Clerk's Office at (408) 777-3223 and a copy will be mailed at no cost to you. You may also view the ordinance at http://www.cupertino.org/measureC.

  Official Information

Note: This is not the official version of Measure C. There could be errors due to retyping. For the official version contact the Registrar of Voters or the City Clerk.

Cupertino City Clerk's Election Page
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Arguments For Measure C
YES on Measure C

This ballot Measure C preserves vital services and quality of life in Cupertino.

Starting in 1965, persons staying in Cupertino hotels have paid a Transient Occupancy Tax (TOT). This TOT is paid by hotel guests only.

100% of these funds remain in Cupertino and are used to provide essential public services such as public safety, library services, parks, and street maintenance. Unless they are staying in a hotel, residents of Cupertino do not pay the TOT.

YES on Measure C will increase the TOT paid by hotel guests by 2%. This will provide the needed funding to maintain the high quality of services our community has come to enjoy. This measure is estimated to generate an additional $450,000 per year.

Unlike most other taxes, TOT is collected locally and the State cannot take this revenue away from Cupertino for our community needs which include:

  • State-of-the-art library services
  • Rapid 9-1-1 emergency response times
  • Current levels of police officers and neighborhood police patrols
  • Crossing guards and innovative traffic safety programs around our schools
  • Proactive maintenance of our streets and sidewalks

Yes on Measure C includes taxpayer protections requiring independent financial audits and yearly reports to the community to keep the City accountable for how these funds are used.

Many residents live in Cupertino because it offers a higher level of service, programs, and quality of life. Vote YES on Measure C to ensure that our City can maintain the high quality of our library, public safety, streets, and parks.

Join our City Council, library, public safety, schools and community leaders, in voting YES on Measure C to ensure Cupertino remains a quality community.

s/ Kathy Stakey
Former Library Commissioner

s/ Roberta Hollimon
Retired Cupertino Resident

s/ Ram Gopal
Cupertino Resident

s/ Steve Ting
Community Leader

s/ Hung Wei
Fremont Union High School Dist. Boardmember

(No arguments against Measure C were submitted)

Full Text of Measure C
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CHAPTER 3.12.030 OF THE MUNICIPAL CODE INCREASING THE TRANSIENT OCCUPANCY TAX RATE

THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS:

WHEREAS, since 1965 transient hotel guests have paid a Transient Occupancy Tax (TOT) on hotel rooms in Cupertino. Like many other California cities, Cupertino uses this funding to provide essential public services through its general fund, and without this revenue, the City would be forced to cut funding that supports: library services, neighborhood police patrols, rapid 9-1-1 emergency response times, city street maintenance, current levels of police officers, and school traffic safety and crossing guards; and

WHEREAS, the rate of the TOT has been ten percent (10%) since 1991; and

WHEREAS, many residents live in Cupertino because it offers a higher level of service, programs and quality of life than neighboring cities; and

WHEREAS, TOT is an important revenue source and increasing that revenue to the general fund will ensure that the City can maintain the high quality of public safety, support library services, maintain city streets, and continue assisting with school traffic safety and crossing guards; and

WHEREAS, TOT is paid by hotel guests only and not directly by Cupertino residents; and

WHEREAS, an increase in the TOT rate to twelve percent (12%) would help maintain city services, including library services, neighborhood police patrols, city streets, 9-1-1 emergency response times, current levels of police officers, and school traffic safety and crossing guards.

NOW THEREFORE, the People of the City of Cupertino do ordain as follows:

Section I. Code Amendment. Chapter 3.12.030. of the Cupertino Municipal Code is hereby amended to read as follows:

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve ten percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax is paid directly to the Tax Administrator.

Section 2. Effective Date. This Ordinance shall take effect January 1, 2012 if approved by a majority vote of the electorate voting on the issue, at the General Municipal Election to be held November 8, 2011 within the City of Cupertino. If so approved, the City Clerk shall certify to adoption of this Ordinance.

Section 3. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable.

Section 4. Amendment or Repeal. Chapter 3.12.030 of the Cupertino Municipal Code may be repealed or amended by the City Council without a vote of the people. However, as required by Article XIIIC of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this Ordinance. The People of the City of Cupertino affirm that the following actions shall not constitute an increase of the rate of a tax:

  1. The restoration of the rate of the tax to a rate that is no higher than that set by this Ordinance, if the City Council has acted to reduce the rate of the tax;
  2. An action that interprets or clarifies the methodology of the tax, or any deduction applicable to the tax, as long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Ordinance.
  3. The establishment of a class of persons that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Ordinance); and
  4. The collection of the tax imposed by this Ordinance, even if the City had, for some period of time, failed to collect the tax.

Section 5. Ratification of Prior Tax. The voters of the City of Cupertino hereby ratify and approve the past collection of the Transient Occupancy Tax under Chapter 3.12.030 of the Cupertino Municipal Code as it existed prior to the effective date of this Ordinance.

Section 6. Certification. The Mayor is hereby authorized to sign where indicated below to certify to the adoption of this Ordinance.

PASSED, APPROVED and ADOPTED by the People of the City of Cupertino this 8th day of November, 2011.

____________________
Gilbert Wong
Mayor, City of Cupertino

ATTEST:

____________________
Kim Smith
City Clerk


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