pages: CityCouncil/2015-10-20.pdf, 9
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CityCouncil | 2015-10-20 | 9 | Mayor Spencer stated on Park Street businesses pay a tax on the revenue and do not tax products they are selling; the difference is authority would be given to hotels in Alameda to allow them to tax and decide how the money is spent. The Community Development Director stated the assessment for PSBA and WABA is supplemental to business licenses. Mayor Spencer stated businesses write a check and are not increasing sales tax to cover the cost because they do not have that power. Councilmember Daysog stated the directly affected stakeholder are the hoteliers; the theory is TOT would increase from 10% to 12% and revenue generated by the 2% increment would be used to bring more visitors to Alameda whether they are coming here for business or tourism related reasons; the hoteliers have a self-interest to work with entities such as the Chamber of Commerce or PSBA; within the business districts there are a set of services which these hotel visitors might want to access, such as dining and movies; in raising the TOT, the City would be arming the hoteliers to work in conjunction with local service providers. The CDD Director stated the incremental increase in the TOT is not a tax, it is an assessment that members of the district would vote to assess themselves. Mayor Spencer inquired when someone comes to rent a hotel room do they pay an extra tax. The CDD Director responded in the negative; stated they pay an assessment. Mayor Spencer stated it is similar to a sales tax because it is passed on to the visitor. Councilmember Ezzy Ashcraft stated the proposal for the possible increase should be in the range of surrounding cities so that people do not stay elsewhere because Alameda is too expensive; a 1 or 2% increase would be used to form a TBID, the rest would go to the General Fund. The CDD Director concurred; stated the existing tax would go to the General Fund; the assessment amount would flow to the District for expenditure on visitor related activities. Councilmember Daysog inquired if the TBID would not be subject to the Balanced Revenue Index (BRI)? The CDD Director responded in the negative; stated the City is simply a pass through entity collecting the assessment and then rebating it back to the District. Mayor Spencer requested someone clarify Councilmember Daysog's comment for the public. Regular Meeting Alameda City Council 9 October 20, 2015 | CityCouncil/2015-10-20.pdf |