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League of Women Voters of California Education Fund
City of Sunnyvale
Municipal Code Amendment - Majority Approval Required
Pass: 18,555 / 69.31% Yes votes ...... 8,215 / 30.69% No votes
Index of all Measures
|Results as of November 28 9:51am, 100.00%% of Precincts Reporting (65/65)|
|Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text|
Shall the Sunnyvale Municipal Code be amended to increase the transient occupancy tax (commonly called the "hotel tax") which is charged only on persons who occupy hotel or motel rooms in the City for 30 days or less, from the current 8.5% to 9.5% over a 2-year period, which is lower than that charged in San Jose, Palo Alto, Mountain View, Milpitas and Cupertino, in order to help maintain basic City services?
The transient occupancy tax applies to persons renting hotel rooms in the City of Sunnyvale. The City of Sunnyvale proposes to increase its existing transient occupancy tax of 8.5 percent of rent charged, the lowest in the region, to 9.5 percent, phased in over 2 years. The transient occupancy tax would increase to 9 percent on January 1, 2007. The tax would increase to its maximum of 9.5 percent on January 1, 2009, provided that the average citywide hotel/motel occupancy rate from January 1 through September 30, 2008, is at least 60 percent. In any event, the tax after January 1, 2010, would be set at 9.5 percent of the rent charged. The tax applies only to persons staying in hotels or motels in the city of Sunnyvale for 30 consecutive calendar days or less.
The proceeds of the transient occupancy tax , as a general tax, will be deposited in the city's general fund and used for general governmental purposes, including police and fire protection services, library, and parks services.
A "yes" vote is a vote to increase the City of Sunnyvale transient occupancy tax from its current rate of 8.5 percent to 9.5 percent with the tax phased in over a two-year period starting January 1, 2007.
A "no" vote is a vote not to increase the transient occupancy tax from its current rate of 8.5 percent.
DAVID KAHN, City Attorney
City of Sunnyvale
|Arguments For Measure E||Arguments Against Measure E|
|Sunnyvale has had some rough going in its budget lately. Because of the "dot com boom and bust", the city faced a $15 million annual structural deficit just two years ago. Today that deficit has been reduced to about $1.75 million through severe cuts enacted by the City Council. Cutting that much has caused hardship for many residents and businesses as services they've relied on disappear. The economy is starting to look up, but even with an upturn the City will have to cut more.
Measure E proposes to help balance the budget through an increase in our Transient Occupancy tax. The Transient Occupancy tax, commonly referred to as a "Hotel Tax," is similar to a sales tax, and it is levied on the cost of renting hotel rooms in the city. Our "Hotel Tax" is currently the lowest in Santa Clara County. When it is increased by this ballot measure it would still be the lowest. It would increase the tax rate by 1% over the course of about five years. At the end of that time it will have added about $1 to the cost of a $100 per night hotel room. As small as that increase is, it will greatly help the City do its work.
Even after this measure passes, the City Council will still have to make more cuts. Measure E will help, but it will not solve the problem. It may mean the difference, though, between cuts that are painful and cuts that undermine our quality of life.
We ask you to give a vote of confidence in Sunnyvale and its government. Vote YES on Measure E, and help us do what must be done to keep Sunnyvale the clean, healthy and prosperous community that it is.
/s/ Frederik M. Fowler
/s/ Ronald Swegles
/s/ Dean J. Chu
/s/ Arley C. Marley III
|No argument against Measure E was filed.|
|Full Text of Measure E|
|N.B. This is an unofficial version. For an official version please contact the City Clerk or the Registrar of Voters.
If Measure E carries, the Sunnyvale Municipal Code shall be amended by amending Section 3.16.040 to read as follows:
3.16.040 Imposition Rate Payment.
(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator through June 30, 1995, and eight and one-half percent of the rent charged by the operator on or after July 1, 1995.
(b) Commencing January 1, 2007, and continuing through December 31, 2008, the amount of the tax shall be nine percent of the rent charged by the operator. Effective January 1, 2009, the amount of the tax shall be nine and one-half percent of the rent charged by the operator, provided, however, that the average citywide hotel/motel occupancy rate from January 1 through September 30, 2008, as determined by the Director of Finance, is at least sixty percent. If the average occupancy rate during this period is less than sixty percent, the increase in the amount of the tax shall be deferred until January 1, 2010. In any event, the amount of the tax on and after January 1, 2010, shall be nine and one-half percent of the rent charged by operator.
(c) Said 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, or any person paying rent on the transient's behalf, 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 shall be paid directly to the tax administrator.