Last adjusted in 1993, the latest increase is expected to result in an additional $1.2 million in taxes per year.
The current tax rate is the lowest in the county, with other tax rates ranging from 10% in Petaluma to 14% in Healdsburg. The proposed 11% tax rate remains among the lowest.
However, with two existing surcharges levied by the city to help pay for tourism promotion, if Measure FF is approved, the overall new lodging tax would be 16%, which would also increase It will be tied with Burgh as the best in the county. Additional charges will be added to the basic price.
Supporters say the increase is unlikely to hurt tourism.
“We want to make sure that we continue to deliver great value to the visitors who come here, and that Measure FF continues to deliver great value to the visitors who come here, while ensuring that Measure FF remains an attractive and cost-effective destination. “We believe it will bring in additional revenue for tourists,” Stapp said.
Tax revenue helps pay for city services
The city is trying to close an operational gap expected to reach up to $40.5 million over the next five years due to increased payroll and operating costs, flat sales tax revenue, and lump sum funding to cover critical expenses. Therefore, voters are being asked to approve this measure. The program evaporates.
City officials are putting together a plan that could save money in the short term, with the possibility of larger program cuts and layoffs in the future.
They plan to present their proposal to City Council on Tuesday.
Proceeds from the two tax measures will go into a general fund that covers salaries, benefits and other operating expenses.
The campaign says it will help fund maintenance and improvements to the city’s roads, parks, public safety and more, as well as efforts to maintain the city’s cleaning and other essential services.
The projected new $4.2 million in revenue will pay for operating costs for the city’s crisis intervention team, inRESPONSE, and for the Safe Parking Program, which provides people living in cars with a place to park while looking for stable housing. Equivalent to the total cost.
Rogers and Stapp acknowledged that while the additional revenue is important, it is not intended to solve the city’s financial problems. They said that getting city government right to address structural deficits will require institutional change and efforts to promote economic growth.
“Regardless of whether the bill passes or not, we’re going to have to look at some sort of restructuring,” Rogers said. “If we don’t do anything, our financial problems will only get worse, so we’ll have to think about it anyway. This will give us a little more time.”
Opponents say the increase will have a negative impact on the local economy.
Santa Rosa resident Eric Fraser, who is leading the opposition to the measure, said the tax increase would hurt the local economy more than it would raise revenue.
In a ballot debate filed in opposition to the business license tax and on his campaign website, Fraser characterized the amendment as a backroom deal that would ease the burden on large businesses and place a greater burden on small businesses. I attached it.
He said he expected the cost of goods and services to “soar” as increased tax obligations forced small businesses to close or relocate and consumers to pass the cost of increased tax obligations onto themselves. I argued that it should.
Similarly, Mr Fraser said the lodging tax rate increase would discourage visitor visits to the region, and not just tourists, but families and friends visiting, people in town for work and people needing shelter in an emergency. He said that it would put pressure on residents who live in the area.
Fraser owns short-term rental properties in Santa Rosa and has been a vocal critic of the city’s rental regulations. He is calling for more transparency about how rent and lodging tax assessments are spent.
Fraser and other vacation rental companies have expressed concerns that they are being unfairly targeted and will be affected by the rising cost of visiting the region.
“Additional business taxes and TOT increases will increase the cost of visiting Santa Rosa and make our city less competitive than surrounding areas,” the Sonoma County Host Friends Coalition said in a letter. . The City Council opposed the measure. “Not only do hosts lose out in this equation, but so do the restaurants, wineries, bookstores, gift shops, coffee shops, and other small businesses that serve visitors to our county, which means our city loses revenue. Sho.”
Fraser said the city shouldn’t balance its budget by supporting local businesses and blamed the city’s mismanagement of its finances, arguing that revenue goes to inflating the budget rather than providing services to residents.
“The Legislature and executive staff have brought Santa Rosa to the brink of bankruptcy. Managing chronic fiscal problems starts with accountability,” he wrote in the vote debate. “Now is not the time to add more revenue to a poorly managed program.”
The Yes camp argued that opposition parties were using scare tactics to persuade voters to oppose the bill, and that the group’s claims were misleading.
The campaign says the measures will not hinder business growth or tourism, and will enable everyone to contribute to city services.
Despite some opposition, the campaign has been relatively quiet so far, overshadowed by a crowded ballot that included many local and state policies.
Supporters of Santa Rosa’s two bills did not report donations in the most recent reporting period, according to a Sept. 26 campaign report, but the political arm of the Santa Rosa Police Officers Association reported an Oct. 11 donation. Donated $10,000.
Opponents also did not report any funding during the most recent fundraising period.
Stapp said the campaign is confident in its chances, but it’s important for supporters to make their case to voters as they prepare to fill out their ballots.
The campaign will increase door-knocking, send out a second letter of mail, and promote the measures through social media and radio spots.
Contact Staff Writer Paulina Pineda at 707-521-5268 or paulina.pineda@pressdemocrat.com. X on Twitter @paulinapineda22.
