LWV LEAGUE OF WOMEN VOTERS
Smart Voter
Alameda County, CA November 2, 1999 Election
Measure E
Tourist Tax
City of Union City

4151 / 67.7% Yes votes ...... 1975 / 32.2% No votes

See Also: Index of all Measures
Infomation shown below: Yes/No Meaning | Official Information | Impartial Analysis | Arguments | Full Text
Shall the City of Union City increase the tourist tax imposed by Section 3.18.025 of the Union City Municipal Code on travelers occupying any hotel/motel room to 8.5% of the daily room rate to be adjusted annually according to the Consumer Price Index?

Meaning of Voting Yes/No
A YES vote of this measure means:
A vote to raise the Tourist Hotel/Motel Room tax from 6.5% of the daily room rate to 8.5% of the daily room rate.

A NO vote of this measure means:
A vote to keep the Tourist Hotel/Motel Room tax at 6.5% of the daily room rate.

Official Sources of Information
Impartial Analysis from the City Attorney
Chapter 3.18 of the Union City Municipal Code now provides for a tax payable by persons occupying hotel or motel rooms in Union City at a rate of six and one-half percent (6.5%) of the room rate. The tax is collected from the hotel/motel guest by the hotel/motel operator and then paid to the city every three months. Persons whose stay in the hotel or motel lasts longer than thirty(30) consecutive days are exempt from the tax. The 6.5% rate has been in effect since 1983.

This tax is not a special tax, but is a general tax deposited in the general fund for general government purposes. Nor is it a tax upon real property. As required by state-wide Propositions 218 and 62, such a tax may only be imposed or increased by a vote of the people at a regular municipal election. As it is a general tax and as it is not a tax involving real property, it may be increased by a simple majority vote.

Measure E amends Chapter 3.18 of the Union City Municipal Code by increasing the tax rate from 6.5% to 8.5% of the hotel/motel room charges. For example, under the current rate, a hotel/motel patron pays a room tax of $3.25/night on a $50.00/night hotel/motel room. If passed, Measure E would increase that tax by $1.00 to $4.25/night on that same $50.00/night hotel/motel room.

s/GARY GALLIANO City Attorney

  
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Arguments For Measure E Arguments Against Measure E
Vote "yes" on Measure E on November 2. Union City residents will not pay one penny of tax as a result of the passage of this measure. When a non-Union City resident or business person travels to Union City and stays in a hotel or motel for 30 days or less, that person pays a tourist tax that is based on the price of the room rental. That tourist tax is collected by cities to help pay for services used by visitors to that city. City services used by visitors include police services, fire services, paramedic services, parks and city streets. Union City currently collects a tourist tax that equals 6.5% of the room rate. This fee has not been raised in more than ten years and it is the lowest rate in our surrounding area.

When the tourist tax is low, Union City residents subsidize the cost of city services that are provided to travelers. Based on hotels/motels currently in Union City, raising the tourist tax to 8.5% will generate an additional $112,000 per year. After raising the tourist tax to 8.5%, Union City's tax rate will still be comparable with neighboring cities. Passage of Measure E will ensure that out-of-town travelers pay for the services they use and end the subsidy being paid by Union City residents.

Measure E does not cost Union City residents any money. In fact, the revenuefrom Measure E will increase funds for park and street maintenance as well as public safety services for all Union City residents. Please vote "yes" on Measure E.

s/MARK GREEN, Mayor
s/BENJAMIN ELIAS, Vice Mayor
s/CAROL DUTRA-VERNACI, Councilmember
s/MANUEL FERNANDEZ, Councilmember
s/RICHARD VALLE, Councilmember

NO ARGUMENT AGAINST MEASURE E WAS SUBMITTED

Text for Measure E
THE PEOPLE OF THE CITY OF UNION CITY DO ORDAIN AS FOLLOWS:

Section 1. Section 3.18.025 is hereby amended to read as follows:

"3.18.025 Rate The Transient Occupancy Tax, commonly known as the Tourist Hotel/Motel Room Tax, is established at eight and one half per cent of the daily room rate, to be annually adjusted according to the ConsumerPrice Index".

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Created: November 18, 1999 14:57
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