Westlake voters to decide fate of bed tax
Supreme Court decision jeopardizes the fee for cities that adopted it between 1985 and 1995 

By Brad Smith, Staff writer
Copyright 2001 Ventura County Star
Article date: August 9, 2001
 

Westlake Village residents will get to decide this fall if a tax imposed in 1990 that raises $220,000 annually for the Conejo Valley city should remain in force.

An extension and increase of the city's tax on hotel and motel guests, known as a transient occupancy or bed tax, will be on the Nov. 6 ballot in response to a decision by the California Supreme Court.

A Supreme Court ruling in June in a case related to a similar tax imposed by the city of La Habra found that such taxes, if imposed between 1985 and 1995, have to be reauthorized by vote of the residents of the city that imposed the tax.

If not, the legality of the taxes can be challenged in court.

"About two month ago the Supreme Court took up a case and basically said the statute of limitations for this subject (was reopened)," said Westlake Village City Manager Ray Taylor.

"So all of this translates into the fact that Westlake Village's (1990) increase in its tax from 6 to 10 percent is being called into question."

In response, the City Council decided last week to place two separate measures on the Nov. 6 ballot.

The first would readopt the current 10 percent tax, while the second would allow the city to increase the fee to 14 percent. The council could hold off on that increase, however.

If the council had not acted this month, the measure could not have been placed on the ballot until 2003.

"What we're looking at with re-adoption of the 1990 increase represents $220,000 to the general fund," Taylor said.

"One can clearly see the connection between that revenue and the services the city provides like law enforcement or road repairs or recreation programs."

The city's general fund, which pays for most city services, totals $6 million.

The Supreme Court decision could have an impact on 50 to 100 of California's 476 cities, according to the League of California Cities.

"It raises questions about cities that passed the taxes in that period of time, so from that perspective it is narrow in its application," said Dwight Stenbakken, an analyst with the association.

"It certainly could have a major effect on some cities, although some communities have fairly low (bed taxes) and it doesn't mean that much one way or the other."
 

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