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reprinted from:
Del Mar's Prop. G encounters no resistance
By Hala Ali Aryan, Staff
Writer DEL MAR - The city will bank an additional $68,000 per year if voters pass a measure in November to boost taxes on hotel rooms. The city will lose about $272,000 a year if it fails. Proposition G would raise the hotel room tax, known as the transient occupancy tax, from 10 percent to 10.5 percent. The money would be directed to the city's general fund, where it could be used for any purpose approved by the City Council. If the measure passes, hoteliers are hoping the money it generates will go toward tourism-related projects, such as beautifying the city or improving public transportation. "The city hasn't acted in partnership with business, even though businesses provide a bulk of the revenue," said John Alper, manager of Les Artistes Inn of Del Mar. "It would behoove the city to use some of the money to get more customers." Hoteliers say they hope the city will not continue raising the TOT after seeing how easily the measure passes. No argument against it was filed for the ballot and it has remained out of the limelight, even as Election Day approaches. Besides the occasional mention at a City Council meeting, no one has campaigned for or against Proposition G. Efforts to raise taxes on visitors are usually more successful and ruffle fewer feathers than those that tax residents. But even a measure to raise property taxes in Del Mar four years ago passed without having an opposition statement filed. It raised funds to pay for a $2 million water system upgrade that would increase pressure in fire hydrants. The City Council originally considered a companion measure to Proposition G that would ask voters for a limit on TOT increases that would not require a citywide vote. Council members decided the additional measure would confuse voters and dropped the idea. The suggestion to increase the TOT came as the city struggled with a budget tightened by a weak economy, declining sales tax and TOT revenue and the looming threat of the state dipping into city coffers. The city had to put its TOT rate of 10 percent on the ballot anyway. Last year, the state Supreme Court ruled that all TOT increases require a citywide election, including previous increases. The City Council figured it was an ideal time to beef up the city's coffers by raising the TOT level to match the city of San Diego. If the measure fails, Del Mar's TOT will drop to 8 percent, the level it was at before the last increase in 1991. The measure requires a simple majority to pass. POST-ELECTION UPDATE:
Del Mar voters reaffirmed
and raised the city's hotel room tax, known as the transient occupancy tax,
from 10 percent to 10.5 percent. The city put its current TOT rate before
voters as Proposition G because the state Supreme Court ruled last year that
all TOT increases require a citywide election, including previous increases.
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