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LWV League of Women Voters of California Education Fund
Smart Voter
Los Angeles County, CA April 11, 2006 Election
Measure Norwalk-A
Continuation of 10% Transient Occupancy Tax
City of Norwalk

2,286 / 88.3% Yes votes ...... 303 / 11.7% No votes

See Also: Index of all Measures

Information shown below: Impartial Analysis | Arguments |

Shall Ordinance No. 06-1568 be adopted to continue the existing 10% tax that is paid only by guests in hotels and motels and that provides funds for vital City general services, such as public safety, parks and recreation, and street improvements? ¿Debería la Ordenenza No. 06-1568 ser adoptada para contínuar el existente impuesto del 10% que es pagado solamente por huespedes en hoteles y moteles para que proporcíone fondos como servícios generales de la Ciudad de seguridad publica, parques y recreacíon, y mejoamiento de calles?

Impartial Analysis from City Attorney Steven L. Dorsey
Measure A approves the City's existing transient occupancy tax (TOT) rate of 10%. The TOT is a tax paid by persons who stay at Norwalk hotels and motels. The tax is not levied on Norwalk residents unless they stay in a motel or hotel in the City.

If Measure A is not approved, the tax will be reduced to 6%. Under current law, the City will not be permitted to raise the tax beyond 10% without a vote of the people if Measure A is approved.

The revenues from the TOT are not designated for any specific purpose, and are used for general City functions such as police protection, recreation services, graffiti removal, and street and park maintenance and repairs.

The amount of the tax included in Measure A generates approximately $340,000 per year to pay for City services. The City would be required to lower the City budget by this amount if Measure A is defeated unless new sources of equivalent revenue to the City can be found. These reductions could adversely impact the services listed above.

The City lawfully adopted an ordinance raising the TOT in 1989 based on the case law existing at that time. Subsequently, the California Supreme Court overruled these prior cases. Even later. the California Supreme Court held that the new decision was retroactive. In response to those cases, a City resident, represented by the Howard Jarvis Taxpayers Association, filed a claim contending the increase authorized in 1985 was not valid.

Instead of expending City funds to litigate this issue, the City voluntarily agreed to submit the TOT rate increase to the voters, and the Howard Jarvis Taxpayers Association indicated that it would take a neutral position on the TOT and would neither support nor oppose it.

A “Yes" vote on Measure A will continue the City’s existing 10% TOT rate that has been in effect for more than 10 years. A “No” vote would reduce the TOT to 6% and reduce the City's annual budget by approximately $340,000 unless new sources of equivalent revenue can be found.

 
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Arguments For Measure Norwalk-A
The Transient Occupancy Tax (TOT), commonly known as the “Hotel Tax," is a fee added to the nightly room rate charged to guests in hotelsa and motels located in Norwalk. The Hotel Tax has been set at 10 percent since October 1, 1990, and is the same or lower than almost every other neighboring city.

Measure A will NOT increase the current rate.

The TOT ensures that the thousands of hotel visitors who travel our streets, frequent our restaurants and retail areas and rely daily on our police, fire and medical response services pay their fair share.

The revenues generated by Norwalk's TOT go into the City's general fund and offset not only the costs associated with visitors, but also bolster City programs in the areas of public safety. graffiti removal, public works, parks and recreation, code enforcement, and capital improvements.

Because the fee is critical to maintaining existing programs and services, we strongly encourage you to vote YES on Measure A. The following are some important points to consider:

  • Approving Measure A will not increase current taxes one penny; it just continues an existing fee,

  • Approving Measure A will protect $400.000 of Norwalk's General Fund. These dollars help ensure that visitors to Norwalk pay their fair share for City services they use while staying in town.

  • TOT revenues help pay for essential services that enhance our community and thus increase property values.

  • Norwalk residents will never have to pay the TOT unless they stay in a motel or hotel located in Norwalk.

  • Measure A sets a TOT rate that is generally less or the same as most cities ib our area.

To preserve the quality of life that makes Norwalk a great place to live, we urge you to VOTE YES ON MEASURE A.

Gordon Stefenhagen, Mayor
Jesse M. Luera, Vice Mayor
Cheri Kelley, Councilmember
Michael Mendez, Councilmember
Rick Ramirez, Councilmember

(No arguments against Measure Norwalk-A were submitted)


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Created: May 8, 2006 12:56 PDT
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