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Santa Clara County, CA November 6, 2001 Election
Measure A
Transient Occupancy Tax
City of Los Altos

Initiative - Majority Vote

2,958 / 76.8% Yes votes ...... 894 / 23.2% No votes

See Also: Index of all Measures

Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text

Shall the City Council of the City of Los Altos be authorized, annually, to set the rate of the Transient Occupancy Tax of the City at a rate not to exceed 11%?

Meaning of Voting Yes/No
A YES vote of this measure means:
A "yes" vote will authorize the City Council to raise the transient occupancy tax rate in an amount which may be up to, but cannot exceed 11%.

A NO vote of this measure means:
A "no" vote will result in a continuation of the 8% rate.

Impartial Analysis from Marc G. Hynes, City Attorney

City Attorney's Impartial Analysis of Measure A

Measure A proposes to increase the City of Los Altos Transient Occupancy Tax from the present rate of 8% to an amount not to exceed 11%. A tax of 11% or less could be set by City Council resolution. The Transient Occupancy Tax is collected by the operators of hotels in the City from persons occupying space in the hotels. Revenues from the Transient Occupancy Tax are paid into the City's general fund. This fund provides moneys which support all City services. These include public safety, traffic control, maintenance of streets, City facilities and landscaping, and parks and recreation. A yes vote will authorize the City Council to raise the tax rate in an amount which may be up to, but cannot exceed 11%. A no vote will result in a continuation of the 8% rate. The above statement is an impartial analysis of Ordinance 01-403. If you desire a copy of the ordinance, please call the City Clerk at 650 949-1491 and a copy will be mailed at no cost to you.

  News and Analysis

Los Altos Town Crier

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Arguments For Measure A

Vote Yes on Measure A. Improve City Services by Increasing the Los Altos Tax on Hotel Use to be Comparable with the Prevailing Rate in California Cities.

The Transient Occupancy Tax on hotel room use is presently 8% in Los Altos. This is the lowest rate in the Peninsula area. The prevailing rate, locally and statewide, is 10%, with some rates much higher. Measure A would allow the City Council to set the rate up to a maximum of 11%. The Transient Occupancy Tax ensures that hotel visitors help pay for the many City services they enjoy, including police and fire protection. Passing Measure A would provide many advantages for our residents. The tax burden would be on hotel visitors, not on our residents. The additional revenue would be used to improve City services. The revenue would go into the City's general fund to support all City services such as public safety, traffic control, street and landscaping maintenance, parks and recreation, and improved maintenance of City facilities. All revenue gained by passing Measure A will stay within our city. This revenue is not subject to withholding by the State. The State increased its diversion of other City revenue in the last recession and that diversion continues today. The State is expected to face a budget deficit again next year. Measure A is fiscally prudent for our city, does not burden our residents, allows public services to be improved, and does not jeopardize the competitiveness of Los Altos hotels in the local market. VOTE YES ON MEASURE A. /s/ King Lear, August 13, 2001
Mayor, Los Altos City Council /s/ Julia C. Rose, August 13, 2001
President, Los Altos Chamber of Commerce /s/ Barbara M. Williams, August 13, 2001
Co-chair, Silicon Valley Realtors and Homeowner's PAC, Los Altos District

(No arguments against Measure A were submitted)

Full Text of Measure A

An Ordinance of The City Council of Los Altos Providing For An Increase In The Transient Occupancy Tax Rate Not To Exceed Eleven Percent (11%)


The People of the City of Los Altos do ordain as follows: Section 1. Amendment of Code Section 3.36.020 of the Los Altos Municipal Code. "Section 3.36.020 of the Los Altos Municipal Code is hereby amended to read as follows: 3.36.020 Tax Imposed. For the privilege of occupancy in any hotel, each transient shall be subject to, and shall pay, a tax in the amount not to exceed eleven percent (11%) of the rent charged by the operator. The City Council shall have the authority to set the rate at eleven percent or any lesser rate as the Council shall determine by resolution. The tax shall constitute a debt owed by the transient to the city which tax shall be 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, the 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 shall be paid directly to the tax administrator.

Section 2. Determination of Amount to be Raised. Each year following adoption of the City's annual budget, the City Council will determine the rate to be charged for the transient occupancy tax and shall set that rate in an amount not to exceed the rate authorized by this ordinance or any lesser rate as the Council shall determine by Resolution.

Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect the other provisions or applications, and to this end the provisions of this ordinance are declared to be severable.

Section 4. Amendment or Repeal. This ordinance or any provision thereof may only be amended or repealed by approval of the voters voting on the proposition at any initiative or referendum election

Section 5. Publication. A summary of this ordinance shall be published in the Los Altos Town Crier, as provided for in Government Code § 36937.

Section 6. Effective Date: This ordinance shall be adopted if approved by a majority of the voters voting at a general election to be held on Tuesday, November 6, 2001, and go into effect ten (10) days after the City Council has, by resolution, declared that such measure was approved by a majority of the voters voting thereon."


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Created: December 3, 2001 02:34
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