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Smart Voter
San Diego County, CA November 7, 2000 Election
Proposition U
Transient Occupancy Tax Increase
City of Santee

8,130 / 44.66% Yes votes ...... 10,074 / 55.34% No votes

See Also: Index of all Measures

Information shown below: Official Information | Impartial Analysis | Arguments |

Shall the ordinance amending Section 3.16.030( a) of the Santee Municipal Code to set a maximum rate of fifteen percent for the City's transient occupancy tax be adopted?

Official Sources of Information
Impartial Analysis from the City Attorney
The City currently imposes a 6% Hotel/ Motel Tax on persons occupying hotels and motels in the City of Santee. This tax is primarily paid by visitors to Santee staying at its hotels and motels.

This tax is also referred to as a Transient Occupancy Tax. The City Council desires the ability to increase the Hotel/ Motel Tax from a rate of 6% up to a rate of 15% if the City identifies a need for additional revenues. Revenues raised from the Hotel/ Motel Tax are placed in the City's general fund and used for projects to benefit the citizens and residents of Santee. The current City Council has indicated that it intends to use the revenues received from the increase in the Hotel/ Motel Tax for the construction and maintenance of the Town Center Community Park.

Proposition 218 adopted by the California voters in November 1996 requires that all general taxes be approved by a majority of the voters at a regularly scheduled general election. If a majority of the voters vote to increase Santee's Hotel/ Motel Tax at the regular municipal election held on November 7, 2000, the City Council will have the ability under Section 3.16.030 of the Santee Municipal Code, to set the Hotel/ Motel Tax at any level between 6% and 15%.

 
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Arguments For Proposition U Arguments Against Proposition U
The City's Hotel/ Motel tax does not affect City residents. It is a tax added to room rent on visitors to Santee who stay thirty days or less, use City streets and possibly other public facilities. These visitors enjoy the amenities of Santee and should contribute toward the cost.

The current 6% Hotel/ Motel tax has not been changed in twenty-years since the City incorporated in December 1980. The City of Santee has the lowest Hotel/ Motel tax rate in San Diego County.

Out of eighteen cities in San Diego County, only one other city has 6% rate, two cities have 8% rates, thirteen cities have 10% rates and one has a 10.5% rate.

If the Hotel/ Motel tax is increased to 10%, it would generate an additional estimated $59,300 annually from visitors to Santee that could be used for the construction and maintenance of the Town Center Community Park as intended by the City Council. If the Hotel/ Motel tax is increased to the maximum 15%, it would generate and additional estimated $133,500 annually from visitors to Santee toward the Park.

Most Hotels/ Motels charge at least a 10% room tax. It is time for Santee to adjust its tax levy to be "in-line" with other cities and generate additional dollars for the Town Center Community Park.

JACK E. DALE, JR, Mayor

HAL RYAN, Councilmember

RANDY G. VOEPEL, Councilmember

Rebuttal to Arguments For
The argument that three politicians wrote in favor of increasing taxes reads like an excuse one might hear from a spoilt child: "All the others are doing it, so I should, too!" The fact is that keeping the transient occupancy tax (TOT) low will make our business environment MORE competitive.

The theory that visitors do not pay their fair share of local taxes is ludicrous. Visitors pay local sales taxes, a 6% TOT and contribute to the local economy. The motels pay taxes. Furthermore, the city receives some Federal and State monies some of which comes from taxes paid by those abroad.

They say that the tax has not been raised in twenty years. So what? Should taxes be raised simply because time has passed? What a mindset!

They argue that an increase to 10% will raise $59,300 more. How nice! This could fund an additional special interest celebration party like that written about in the San Diego Union-Tribune (8/ 17/ 00). The article's headline read: "Santee funds black-tie bash...$ 50,000 gala for 250 people to mark city's anniversary will be paid for by taxpayers". Gee, if they raise the TOT to 15% perhaps they could have three parties! In fairness, they abandoned the party, but in our opinion it was simply because it got reported . . . the kids were caught in the cookie jar!

Too often, TOT monies are used as little special interest slush funds.

Vote NO on Proposition U!

More information: http:// hometown. aol. com/ steveglp/

STEVE GREEN, Chairman, San Diego County Libertarian Party

RICHARD KLOOS, Owner, Gibraltar Construction

CONNIE M. WILLIS, Mortgage Broker

LARRY ROSNER, Small Businessman

MICHAEL BENOIT, Santee Business Owner

This measure allows for a tax increase. The politicians hope you will support it in the view that it taxes "someone else", namely tourists and visiting businesspeople. The United States was founded on the principle that taxation without representation is wrong, yet that is exactly what this measure allows for, since non-residents staying in Santee lodging cannot vote in Santee elections.

If it costs more for visitors to stay here, they can seek lodging elsewhere. If our hotel tax is lower than neighboring cities, then more visitors will be encouraged to stay here ---possibly even resulting in more tax revenues. Empty rooms do not generate room tax, and harm the local economy.

The measure is open-ended and vague. It gives politicians the ability to raise the hotel tax without specifying how those taxes will be used. It doesn't even specify a specific rate ---it just allows them to raise it to the maximum of 15 percent or any number up to that point. Why encourage bigger government and wasteful spending? Why give politicians a blank check to waste as they please?

The tax places an extra burden on the few businesses that operate hotels/ motels here. Why penalize these businesses? Which businesses will be targeted with tax increases next? Already government is too big and taxes too high. The Santee City Council should be finding ways to CUT taxes, not raise them. Don't fall into the politicians' trap that this is a tax on "someone else". You could be next!

Please vote NO.

STEVE GREEN

REYNALDO G. TERAN, Chairman, San Diego County Libertarian Party

SHY MEI-TZY WU, Owner, Best Western Santee Small

MARK D. ROBINSON, Businessman

ROBERT D. HILD, Engineer

REBUTTAL TO ARGUMENT AGAINST PROPOSITION U

Tourists and visiting business people are welcome to Santee. However, they are not city residents and pay no property taxes that help support city services. Visitors use city streets and can us other public facilities such as parks.

Increasing the City's Hotel/ Motel tax is not going to discourage visitors from staying in Santee. Other considerations such as the purpose of the visit, the location and the amenities of the Hotel/ Motel are much more important factors.

This measure allows the Hotel/ Motel tax to be increased from the current 6% up to a maximum of 15%. The City Council will not raise the rate unless there is a need for additional revenues. This measure provides the flexibility to increase rates incrementally as needed, while having a cap, instead of establishing a single rate.

Don't stereotype local government as "big government" lumped in with the State and Federal levels. Local government, your city, is the most efficient and responsive level of government to address your needs. It is a matter of trust in your elected representatives. The Hotel/ Motel tax will only be raised because a need such as the Town Center Community Park project is identified.

This is a fair and equitable Hotel/ Motel tax on someone else enjoying the amenities of your City. You almost always pay a higher Hotel/ Motel tax when you visit another city and stay in a Hotel/ Motel. Why shouldn't our city have a comparable rate?

PLEASE VOTE YES

JACK E. DALE, JR., Mayor

HAL RYAN, Councilmember

LORI HOWARD, Council Member


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Created: January 25, 2001 02:34
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