Measure N, to free up Sacramento’s hotel tax revenue, leads in returns
A measure that would give Sacramento more flexibility in how it spends revenue from its hotel tax continues to lead in returns Friday afternoon.
The measure was ahead 69% to 31% in the 4 p.m. update from Sacramento County election officials.
Measure N would update a 1964 ordinance in such a way that the city could spend hotel tax revenue on a broader variety of tourism-related services, such as theaters and sports facilities.
The votes are a reflection of the nearly universal support for the measure, which had no formal opposition and was placed on the ballot by a unanimous vote of the city council.
The transient occupancy tax collects a 12% percent tax from anyone who stays at a hotel, motel or short-term rental for less than 31 consecutive days. And per its 1964 rules, revenues from 2% are placed in the city’s general fund, while the remaining 10% must be used for convention halls, public off-street parking, and street work that encourage the use of public places.
The tax was previously used to renovate the SAFE Credit Union Convention Center and the Memorial Auditorium.
Groups in support of the measure had stressed that the provisions were too restrictive and should be updated. They also cited the importance of directing money to tourism infrastructure that would eventually drive revenues and “replenish” the transient occupancy tax.
“We are trying to expand our appeal as a tourism destination by bringing in things that will attract tourists but will benefit the locals,” said Mike Testa, president and CEO of Visit Sacramento.
Testa named the Old Sacramento Waterfront and youth sports facilities as possible beneficiaries if the measure passes.
Major donors for Measure N included Visit Sacramento ($100,000), Golden Shiner LLC ($50,000) and Park West Casino ($10,000).
This story was originally published November 8, 2022 at 8:34 PM.
