City panel rejects proposal to boost hotel-room tax

By Ray Huard, Staff Writer
Copyright 2001 San Diego Union-Tribune
Article date: October 12, 2001
 

It is unlikely San Diego's tax on hotel rooms will be going up any time soon after a City Council committee Wednesday unanimously rejected a proposal to raise the tariff.

"It's inappropriate at this time because of the current economic conditions of the visitor industry," Mayor Dick Murphy said in urging his Rules Committee colleagues to kill the tax increase suggested by Firefighters Local 145. Hotel representatives have complained that business has dropped precipitously since the terrorist attacks on New York and the Pentagon Sept. 11.

"This is probably the worst possible time for us to be discussing this as an option," Councilwoman Toni Atkins said.

Last month, the firefighters union urged council members to put a measure on the March ballot asking voters to peg the hotel tariff, formally known as the transient occupancy tax, to the average rate charged by 10 Western cities that compete with San Diego for tourists and convention business. That average stands at about 13.5 percent; San Diego's rate is 10.5 percent.

The firefighters said the increase was needed to pay for replacing deteriorating fire stations and worn-out equipment, among other things.

A draft ordinance of the firefighters' proposal was prepared by the City Attorney's Office at the request of John Kern, Murphy's chief of staff.

At first, Kern said Murphy had no position on the tax increase. About a week later, after representatives of the tourism industry had vigorously voiced their opposition, Kern said Murphy decided to oppose it.
 

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