Proposed San Jose hotel tax critical to avoid cutting services - San Jose Spotlight

"San Jose voters are being asked to increase the city's hotel tax by 2% on the June 2 primary election ballot. San Jose's Measure A, which will increase the city tax levied on hotel guests from 10% to 12%, has opened up a familiar debate for the consistently cash strapped metro. On one hand, supporters argue the city must find ways to generate more revenue or face dramatic public service cuts. On the other hand, opponents contend adding any more taxes to to the city's already struggling tourism industry will weigh down the local economy."

"Adding extra urgency to the debate, San Jose officials laid out dire warnings this week that if voters reject the proposed hotel tax, the city will be forced to make deep cuts to a range of core services including public safety and the library system. The ballot measure needs a simple majority to pass and would take effect Oct. 1 if approved. The bump to the tax on visitor stays in local hotels, also known as a transient occupancy tax, would generate roughly $10 million in additional revenue each year, according to city estimates."

"The money would go to the city's general fund, leaving it up to future City Council deliberations to determine how it will be spent. Measure A has drawn broad support, including from the Santa Clara County Democratic Party as well as Mayor Matt Mahan, who signed onto the argument in favor of the measure that appears in the Santa Clara County voter information guide. The measure's support spans across San Jose's rival business and labor political coalitions, having won endorsements from the San Jose Chamber of Commerce as well as the South Bay Labor Council."

""It's important that Measure A passes because the city general fund needs immediate relief to avoid layoffs and protect core services," South Bay Labor Council Executive Officer Jean Cohen told San José Spotlight."

San Jose voters face a June 2 ballot measure to increase the city’s hotel tax by 2 percentage points, raising the transient occupancy tax from 10% to 12%. Supporters say the city needs additional revenue to prevent dramatic public service cuts, including potential layoffs and reductions to public safety and library services. City officials warn that rejecting the measure would require deep cuts across core services. The measure requires a simple majority and would take effect Oct. 1 if approved. City estimates project about $10 million in additional annual revenue, deposited into the general fund for future City Council decisions. Endorsements include the Santa Clara County Democratic Party, Mayor Matt Mahan, the San Jose Chamber of Commerce, and the South Bay Labor Council.

Read at San Jose Spotlight