EDITORIAL
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In November, Costa Mesa voters will decide on a proposed tax increase.
The good news, the residents will not be affected by the tax.
More good news, the funds would be used to buy and preserve land as
parks and open space.
You might ask: when is a tax increase ever good news?
The answer: when it’s a hike in the hotel tax.
The City Council has placed a measure on the November ballot to raise
the city’s Transient Occupancy Tax -- or the hotel tax -- to 8%. Now at
6%, it is low. In fact, it hasn’t been raised in about 20 years, so you
could say an increase is long overdue.
And even at 8%, the levy would be below the county average, making it
unlikely that the tax would render Costa Mesa’s hotels uncompetitive in
the market.
The argument has been raised that raising the bed tax could hurt
tourism -- chasing away potential hotel guests.
But really, when is the last time you checked the hotel tax in a city
before visiting? Most patrons realize that there is a levy involved in
staying at a hotel, but do they change their destinations because of it?
And Mayor Gary Monahan has argued that it is unfair to tax outsiders
to benefit the city’s parks.
Well, who are Costa Mesa residents paying hotel taxes to when they go
on vacation or on business trips? And do they, as taxpayers, get a say in
how those cities use the revenues?
The hotel tax currently generates nearly $4 million for the city each
year. The increase could add more than $1 million annually -- and that
extra cash would be used to buy up plots of precious property before open
space disappears.
And whatever opinions residents might have, they also have in their
hands the power to approve or deny the tax. The measure requires
two-thirds voter approval. That’s good news, too.
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