League of Women Voters of California Education Fund
	Santa Barbara County, CA June 8, 2010 Election
	Measure K2010 Transient Occupancy tax rate County of Santa Barbara Majority Approval Required Pass: 54169 / 71.56% Yes votes ...... 21528 / 28.44% No votes See Also: Index of all Measures

Arguments For Measure K2010

ARGUMENT IN FAVOR OF MEASURE K2010 Measure K is fair Tourists and business people who visit and stay in hotels and other paid lodging in unincorporated County areas have been paying a 10% tax on their room charge for over 20 years. The "hotel bed tax," or transient occupancy tax, is a general tax imposed upon hotel guests and is equal to 10% of the daily room rate. Voting for this measure will keep the 10% rate in place locally. Sacramento cannot borrow or take away this tax. The tax revenue is for local needs. Measure K is necessary Approval of Measure K would ensure that the many thousands of visitors, who travel our streets, enjoy our beaches, parks, trails and open space and rely on our sheriff, fire and medical services and clinics would contribute to a portion of the costs of service. The "hotel bed tax" revenues are used for general government services such as public safety, law and justice, health and parks. They are also used for fire suppression, patrol services, crime prevention, criminal prosecution, gang suppression and operating the juvenile hall and jail. The "hotel bed tax" also contributes to health clinics, children's services, libraries and parks. A "NO" vote would cost the County $1.2 million in lost revenue as the hotel tax would drop to only 8%. Funding cuts would then have to be made to these services starting on July 1, 2010. A "YES" vote makes no change in the 20-year old tax rate but sustains revenue flow to help pay for vital local services. Board of Supervisors of the County of Santa Barbara. Janet Wolf, Chair, on behalf of the Board of Supervisors, County of Santa Barbara (No arguments against Measure K2010 were submitted)

Full Text of Measure K2010

RESOLUTION NO. 10-045 RESOLUTION OF THE SANTA BARBARA COUNTY BOARD OF SUPERVISORS PROPOSING TO CONTINUE THE TRANSIENT OCCUPANCY TAX RATE AT ITS CURRENT LEVEL OF TEN PERCENT (10%), SUBMITTING THE PROPOSED LANGUAGE FOR CONTINUATION TO THE ELECTORATE FOR APPROVAL, AND REQUESTING AND ORDERING CONSOLIDATION WITH THE JUNE 8, 2010 GENERAL ELECTION ON SAID TAX RATE CONTINUATION. WHEREAS, Article XIII C, Section 2 of the California Constitution, and Government Code Section 53723 authorize the Board of Supervisors of the County of Santa Barbara to impose, extend or increase a general tax upon a majority vote of the population; and WHEREAS, Revenue and Taxation Code Section 7280 authorizes the County to levy a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, touri st homes or house, motel, or other lodging; and WHEREAS, the Board of Supervisors may submit to the voters, without petition, an ordinance for the repeal, amendment, or enactment of any ordinance pursuant to Election Code Section 9140; and WHEREAS, in 1978, the Board of Supervisors amended the Santa Barbara County Code to set a transient occupancy tax in the amount of eight percent (8%) of the rent charged by the operator of any hotel or similar structure designed for transient occupancy; and WHEREAS, in 1990; the Board of Supervisors amended the Santa Barbara County Code to increase the transient occupancy tax to ten percent (10%)* of the rent charged by the operator of any hotel or similar structure designed for transient occupancy; and WHEREAS, the California Supreme Court subsequently held that the continued imposition and collection of a general tax starts a new statute of limitations period for Proposition 62 legal challenges to the tax that is collected; and WHEREAS, in order to ensure that the County's transient occupancy tax is legally sound, the Board of Supervisors desires to submit the current transient occupancy tax rate to a vote of the people to determine whether the current transient occupancy tax of ten percent (10%) of rent should be ratified and continued; and WHEREAS, if the current rate is not continued by the voters, then the transient occupancy tax would revert to the rate of eight percent (8%) established in 1978 (prior to Proposition 62). NOW, THEREFORE, BE IT RESOLVED that: 1. The Board of Supervisors of the County of Santa Barbara hereby proposes the ordinance attached hereto as Exhibit "A" to continue the current ten percent (10%) transient occupancy tax rate from the pre-Proposition 62 tax rate of eight percent (8%) for general governmental purposes. 2. The Board of Supervisors of the County of Santa Barbara hereby submits the ordinance and proposed tax (the current existing tax) to the electorate for approval, calls an election for June 8, 2010 for approval of the ordinance and the existing tax, and requests and orders that this election be consolidated with the general election to be held on that date. 3. The transient occupancy tax is a general tax imposed upon transients for the privilege of occupying defined hotels located within the unincorporated territory of Santa Barbara County. If approved by a majority of the electorate voting on the measure, the ordinance will continue the current transient occupancy tax rate of ten percent (10%). If rejected by the electorate voting on the measure, the transient occupancy tax would revert to the pre-Proposition 62 tax rate of eight percent (8%). The tax would be collected by hotel operators, in the same manner as it has historically been collected. The collection of the tax from hotel operators would be administered by the Santa Barbara County Tax Collector as provided in Section 32-15 of the Santa Barbara County Code. 4. The Board of Supervisors intends for such voter approval to have the effect of ratifying and continuing the Board of Supervisors' 1990 two percent (20/6) increase of the County's transient occupancy tax. 5. The transient occupancy tax imposed by the ordinance is a general tax within the meaning of Government Code Section 53721 and Article XIII C, Section 1(a) of the California Constitution. The revenue generated by this general tax is available for general governmental purposes. 6. The measure shall be submitted to the voters in the following form: Shall an ordinance to continue Section 32- 12 of the Santa Barbara County Code to Yes sustain the current transient occupancy tax rate of ten percent (10%) upon transients occupying defined hotels located only within the unincorporated area of Santa Barbara County be approved? 7. The County Clerk is hereby authorized, instructed, and directed to provide and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct an election. 8. The County Clerk is hereby further directed to take the necessary and appropriate actions to provide the necessary election officers, polling places, and voting precincts. 9. In accordance with the provisions of the Election Code, the County Counsel is authorized to prepare an impartial analysis of the measure, and the Auditor is directed to prepare a fiscal analysis. 10. The polls for said election shall be open during the hours required by law and said election, with respect to the foregoing ballot measure, shall be held and conducted as provided by law for the holding of County elections. 11. Notice of time and place of holding said election, together with any other. notices required by law, shall be given by the County Clerk. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Supervisors of the County of Santa Barbara held on this 2nd day of February 2010, by the following vote: AYES: Supervisors Carbajal, Wolf, Parr, Gray NOES: Supervisor Centeno EXHIBIT A PROPOSED ORDINANCE TO CONTINUE THE CURRENT TRANSIENT OCCUPANCY TAX RATE AN ORDINANCE OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA CONTINUING THE PROVISIONS OF COUNTY CODE SECTION 32-12 TO SUSTAIN THE CURRENT TRANSIENT OCCUPANCY TAX RATE OF TEN PERCENT (10%) THE PEOPLE OF THE COUNTY OF SANTA BARBARA ORDAIN AS FOLLOWS: SECTION I: VOTER APPROVAL OF SANTA BARBARA COUNTY CODE SECTION 32-12. Section 32-12 of the Santa Barbara County Code is hereby set forth for voter approval to read as follows: 32-12. Tax imposed on Transients; Rate; When Payable For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount often percent (10%) of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the County which is extinguished only by payment to the operator or to the County. 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 is not paid to the operator of the hotel, the County Tax Collector may require that such tax shall be paid directly to the County Tax Collector. SECTION II: NATURE OF TAX If approved by a majority of the electorate voting on the measure, the ordinance will continue the current transient occupancy tax rate of ten percent (10%) of rent charged. The transient occupancy tax is a tax imposed upon transients for the privilege of occupying defined hotels located within the unincorporated territory of Santa Barbara County. The tax would be collected by hotel operators in the same manner as the current transient occupancy tax is collected. The collection of the tax from hotel operators would be administered by the Santa Barbara County Tax Collector as provided in Section 32-15 of the Santa Barbara County Code. SECTION III: GENERAL TAX. The transient occupancy tax imposed by this ordinance is a general tax within the meaning of Government Code Section 53721 and Article XIII C, Section 1(a) of the California Constitution. The revenue generated by this general tax is available for general governmental purposes. To that end, the Auditor- Controller is instructed to deposit the revenue from the tax into the County-General Fund and to include his estimate of the revenue from this general tax, together with his estimates of other revenue sources, in the tabulation that he is annually required to prepare by Government Code Section 29060. The revenue from this general tax shall be made available to the Board of Supervisors for annual appropriation in the County's budget for any lawful expenditure. Nothing in this ordinance nor in any other ordinance, advisory measure, resolution, or policy shall be construed as limiting, in any way, the amount or the objects of the appropriations and expenditures that can be made from the revenue of the tax nor be construed as creating a continuing appropriation. SECTION IV: EFFECT. Voter approval of this ordinance shall have the effect of ratifying and continuing the Board of Supervisors' 1990 two percent (2%) increase of the transient occupancy tax. SECTION V: SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION VI: ELECTION. An election shall be held on June 8, 2010, on the issue of continuing the current transient occupancy tax rate at ten percent (10%) of rent charged. If the measure is defeated, the transient occupancy tax will revert to the transient occupancy tax of eight percent (8%) of rent charged. SECTION VII: EFFECTIVE DATE. This ordinance shall take effect immediately upon its adoption by a majority of the electorate voting on the ordinance at the June 8; 2010 general election.