What does it mean when of all people on the San Diego City Council, it is Donna Frye that is the articulate voice against bigger government? Well, last week, that is exactly what happenned, as she and colleague Tony Young cast the only two dissenting votes on hiking the city’s hotel-room tax. I read with disappointment that the City Council in San Diego voted 6-2 (with only, of all people, Donna Frye and Tony Young voting no) to create what they call a "tourism marketing district" in San Diego.
Let me explain how this works. In the geographic area specificied for the district (in this case, a broad area) there are 175 hotels. The Council, in establishing this district, increased the hotel tax for these businesses (via the bill on their guests) by 2% raising the hotel room tax (called a "transient occupancy tax") to 12.5% from 10.5%.
What was the justification for an increase of taxes in the City of San Diego? The theory is that this is a tax that was "asked for" by the hotel industry, as the funds coercively taken into the coffers will be spent to advertise San Diego’s hotels and motels. The new taxes are lauded in the newspaper by the chief executive of the San Diego Lodging Industry Association as a good thing, saying that the, tourism marketing district "will keep the industry healthy and strong."
There are a couple of important things to consider when deciding how "voluntary" this tax happens to be. The first is that apparently, before voting to create the tax, the city sent questionairres to the effected hotels. While 91% of them expressed a positive opinion about the tax hike, 9% did not. Which means we have this kind-of "tyranny of the majority" where this tax hike is being forced on hoteliers that do not want it. In addition, of course, this tax will be in place for any new hotels that are built in this area — their owners won’t be asked their opinion — not that voicing opposition, in this case, spared you from being taxed.
You have to ask yourself why, if there was "popular support" among hotel owners to pay a percentage of their income for a pooled marketing program, why they wouldn’t, perhaps under the auspices of the Lodging Industry Association, simply form a voluntary program?
**There is more – click the link**
December 8th, 2007 at 12:00 am
Tyranny of the majority Jon? My goodness. So how does your concept of tyranny of the majority square with, say, gay marriage?
December 11th, 2007 at 12:00 am
The voters of San Diego soundly rejected this tax just a few years ago. I believe it was Prop E. The City Council once again is not listening to the voters (only those financing their campaigns). I guess when you don’t win at the ballot box, you just go ahead and legislate against the wishes of the taxpayers.
Perhaps the City Council should legislate that the TOT monies be used ONLY for their original purpose; to promote tourism and not raided by the City for general purposes.
When are the City Council members going to realize that when taxpayers say NO, they mean it.