League of Women Voters of California
Increase in Transient Occupancy Tax Fee from 7% to 11%
City of Gardena
Majority Approval Required
4,627 / 52.83% Yes votes ...... 4,132 / 47.17% No votes
Index of all Measures
|Results as of Nov 26 10:38am, 100.00% of Precincts Reporting ( 29/ 29)|
|Information shown below: Impartial Analysis | Arguments ||
Shall Measure L, increasing the tax fees to the transient occupancy tax from 7% to 11% and clarifying the intent thereof and effective 01/01/03, be adopted?
The City of Gardena currently collects a transient occupancy tax, also known as a "bed tax" or "hotel tax" from transients (those occupying hotel or motel rooms within the City of Gardena for 30 days or less). The transient pays the tax to the hotel and the hotel remits the tax to the City of Gardena. The City of Gardena deposits transient occupancy tax revenue into its General Fund, which supports a number of City services, including police and fire protection, street repairs and youth and senior recreation activities. The transient occupancy tax is currently charged in the amount of 7% of the cost of the hotel room. This measure proposes to increase the transient occupancy tax from 7% to 11%. This measure would also clarify the intent that all transients occupying a hotel or motel room for 30 days or less will be required to pay the tax for the first 30 days of the stay unless a lease for a period longer than 30 days is entered at the time of initial occupancy.
The increase in the transient occupancy tax rate is submitted to the voters of the City of Gardena to comply with the requirement of Article 13C, sec. 2 of the California Constitution. That enactment requires approval of the increase of a transient occupancy tax deposited into the City of Gardena's General Fund by a majority of the voters voting in an election on the issue. If approved by a majority of the voters, the increase will go into effect on January 1, 2003.
A "Yes" vote favors increasing the rate of the transient occupancy tax imposed on transients in the City of Gardena from 7% to 11%.
A "No" vote disfavors increasing the rate of the transient occupancy tax imposed on transients in the City of Gardena and maintains the transient occupancy tax rate at 7%.
The above statement is an impartial analysis of Measure "L." If you desire a complete copy of the proposed ordinance, please call the Gardena City Clerk's Office at (310) 217-9565 and one will be mailed to you at no charge. You may also view it on our Web site at http://www.ci.gardena.ca.us.
|Arguments For Measure L|
The City of Gardena, like most other cities, has collected a transient occupancy
tax (or hotel tax) for many years to fund important public services such as police
and fire service, street maintenance and youth and senior activities. A transient
occupancy tax is commonly imposed by cities throughout the South Bay Area
and Los Angeles County. This tax is on hotel and motel guests and is designed to
cover costs for local services which visitors to the City receive while they are
staying in the City.
In June 2002, City staff presented a survey to the Economic Development Committee, which indicated that Gardena's current Transient Occupancy Tax of 7% was the lowest of the nine cities surveyed in the South Bay Area. The Economic Development Committee supported the proposed increase to 11%. This proposed tax increase would raise approximately $221,596 in revenue per year, which goes into the City's General Fund, which will enable our City to continue providing services to our community. The passage of this measure will increase the rate of the transient occupancy tax from 7% to 11% to allow the City of Gardena to continue to fund these important public services.
A "Yes" vote will maintain the current approach of having City visitors pay a minimal amount towards the cost of local public services, which both residents and visitors enjoy. The proposed transient occupancy tax increase is to be set at 11% of the cost per night of the hotel or motel room, which the visitor occupies. Remember, visitors who stay at hotels and motels, in Gardena, pay these additional taxes. This really is not a tax on Gardena residents. The resulting revenues from this measure will be put to excellent use to preserve Gardena's services and boost our local economy.
Vote "Yes" on Measure L.
GRANT J. NAKAOKA, Mayor Pro Tem
FRANK J. ONDERKA, Owner,
LAVERNE KNIGHT, Owner,
BERTRUM M. CE DILLOS, President,
ANNA M. RAMIREZ
(No arguments against Measure L were submitted)