Ontario voters to decide fate of bed tax increase
City officials want out-of-town visitors to pay their fair share.
They hope to achieve that with Measure V, which increases the city's transient occupancy tax -- a daily fee charged to hotel visitors -- by 1 percentage point.
Voters will decide the measure's fate on Tuesday.
Ontario's current rate is 11.75 percent, and a 1 percentage-point increase would mean a nearly $700,000 boost to the city's general fund, said City Manager Chris Hughes.
"We don't want this to be a drain to the community," he said. "This is going to allow us to continue provide services that we're offering."
The increase would slightly cushion the impact from a 27 percent drop in the fees from that source, the result of a down economy.
In 2006, revenue from the tax brought in $11 million to the city. But this year, it is projected to bring in only $8 million, city officials said.
Increasing the tax will help the city mitigate the economic impacts caused by hotel visitors who tap into public safety services, said Councilman Alan Wapner.
"It's the right thing to do," he said. "People shouldn't pay for the services (visitors) are using."
Councilwoman Sheila Mautz said the increase is necessary because she doesn't want those costs to be a burden on the residents.
"It won't be a cure-all, but it will help," she said. "It will help us maintain the programs and services we are providing."
If the measure fails, Wapner said the city will have to tighten its budget but said he doesn't see any drastic cuts.
There are 427 cities in California that charge the tax.
And when the city was considering how much to raise its tax, officials looked at cities with similar amenities, such as an airport or convention center, Hughes said.
Ontario's new rate would put it in the same category with cities like Pasadena, which charges 12 percent, and Anaheim, which is at 14 percent
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| Liset Márquez has covered the city of Ontario for the Inland Valley Daily Bulletin since 2008. She started the OntarioNow blog in August 2008. To contact Liset, leave a comment on this blog or send an e-mail to Liset Marquez |
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