EDITORIAL:
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It seems so easy, so tempting.
Money’s tight. What to do?
Voters don’t like to pick up the tab. Ask any politician. So forget about raising taxes.
But what if you just raise taxes on “outsiders”? Yeah, stick it to the tourists. No pain, with plenty of gain — for us.
Can you blame Costa Mesa officials for wanting to ask voters to raise taxes on hotel customers and business licenses?
Frankly, no.
But have we done all we can to cut costs?
It feels like an asteroid has slammed into the economy and everyone’s got the shovels out to clean up. City staff think the best way to pick up the pieces is to ask voters in November whether they favor boosting the transient occupancy tax, a 6% tax levied on hotel guests.
Finance department officials estimate just a 1% increase would net the city an extra $1 million. That’s not exactly chump change to a city bracing for less revenue in a state reeling from a multibillion deficit.
Councilwoman Katrina Foley argued the city can’t keep up without identifying some new source of income. City Manager Allan Roeder added the city has done its best to manage its money conservatively, but that residents would soon feel the cut-backs if something wasn’t done soon.
Mayor Eric Bever, on the other hand, pointed out that hiking the hotel tax is not a quick fix that’s painless to residents.
He’s right. As he says, local businesses could feel the pinch with less tourism.
Supporters of the tax increase point out Costa Mesa hasn’t adjusted its hotel tax in 20 years and, consequently, it’s the lowest in the county. That’s not a good justification.
A tax increase ought to be a last resort, not an initial impulse. Besides, Costa Mesa isn’t just competing with Newport Beach or Huntington Beach.
Our hoteliers are competing against “staying home.” Ridiculous gas prices have curbed even California’s love affair with the car and put the brakes on more — a lot more — than a few vacations. A heftier price on that hotel booking is sure to be the deal-breaker for many more trips to Costa Mesa.
City officials need to look for more places to cut first. If they still need to ask voters for a tax hike, they should at least first consult with business leaders before putting the question on the ballot.
Times are tough. We all have to make sacrifices. Make sure you’re spending as little as possible before looking for a tax increase.
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