Proponents argue that their municipalities need to generate more revenue in the wake of economic impacts from COVID-19, but opponents question if now is the time to raise rates on an industry also hit hard by the pandemic -- hospitality.
Proponents of the TOT increases say that the money is needed for essential services such as police, fire and infrastructure, though COVID-19 American Rescue Plan funds were specifically designated for such things and injected millions into local coffers. In most cities, if passed, money from the measures increasing TOTs would go into each municipality's general fund.
In unincorporated areas of Santa Cruz County, supervisors put Measure B on the ballot. Though the money would go into the general fund, the board said it would apply the money toward affordable housing, mental health services and wildfire prevention. Brisbane is taking a different approach -- raising taxes on hospitality business owners instead of raising its 14 percent TOT. Measure O would impose a tax on hospitality business owners of $2.50 per day per stay, generating an estimated $250,000 per year. According to the city, the current tax structure on the businesses is paid from gross receipts and only generates less than $2,000 per year.
To pay for more government waste. But never mind. News would not dare reporting that. Right SpeakerPelosi FoxNews GovernmentRF GovPressOffice