The City of Artesia ("City") currently imposes a transient occupancy tax ("TOT"), also generally known as a "hotel" tax, at the rate of twelve and one-half percent (12.5%) of rent paid in order to occupy a room or space in a hotel or similar lodging (referred to herein as a "hotel"). This TOT is imposed upon occupancy of a room or hotel space within the City, for dwelling, lodging, or sleeping purposes, for a period of thirty (30) consecutive days or less. The TOT currently provides approximately $422,200.00 annually to the General Fund to pay for general City services and programs.
Measure "BB" was placed on the ballot by the Artesia City Council and, if approved by a majority of Artesia voters, will amend the Municipal Code to increase the maximum TOT rate from twelve and one-half percent (12.5%) to fifteen percent (15%) of the rent paid by guests in order to occupy a room or space in a hotel. The tax rate set by Measure "BB" can be increased or decreased by the City Council, provided it does not exceed the voter-approved maximum rate. It is anticipated that this rate increase will generate an additional $84,000.00 in new revenues.
Measure "BB" would also update the Code to clarify that the tax applies to the full rent paid by the hotel guest for occupancy, whether payment is made directly to a hotel operator or to a third-party "rental agent" for booking purposes (i.e., online travel companies and online short term rental companies). Measure BB includes other technical updates to address block reservations, claiming a TOT tax exemption, and how to calculate days of taxable hotel occupancy.
Measure "BB" would be a "general tax". All revenue from this tax would be deposited into the City's General Fund and could be used for general City operations and services, including public safety, parks and recreation services, and maintaining public infrastructure such as streets, sidewalks, parks and facilities. Pursuant to State Law, a "general tax" requires approval by a majority of the City's voters voting at an election.
A "yes" vote on Measure "BB" will approve the TOT tax rate increase.
A "no" vote on Measure "BB" will not approve the TOT tax rate increase.
If Measure "BB" is not approved, the General Fund will not receive the TOT tax revenues identified in this Measure. The City Council will then have to decide, as part of the budgeting process, whether or not other revenues are available to pay for City Programs and services, or whether City programs and services will have to be reduced.
