Sacramento ballot measure would free up money for arts and attractions. Here’s how it works
For years, Sacramento put money it collected from its hotel tax directly back into the city’s tourism industry, funding renovations of theaters and the city convention center.
A city measure on the local ballot would allow Sacramento leaders to use that money for a broader mix of services, freeing up funds for economic development and new public venues.
Sacramento tourism boosters support the proposal, and the measure has no opposition.
The Sacramento City Council has placed Measure N on the ballot, which would expand the description of the hotel tax, or bed tax and allow the special taxes to be used for additional local services.
The Transient Occupancy Tax collects tax from those who stay at a hotel, motel or short term rental for less than 31 consecutive days.
It’s not a new or local tax, stresses Mike Testa, president and CEO of Visit Sacramento. And the percentage is not increasing.
Currently, the Transient Occupancy Tax is a combination of a general tax (2%), which is used for any government use within the city of Sacramento, and special taxes (10%) that must be used for specific, tourism-related projects. About $14 million in special taxes was collected last year.
Under the current city code, money collected from the special taxes must be used for convention halls, public off-street parking, and street work that make it easy for the public to assemble in public places. Supporters of the measure say the current provisions are too restrictive and broadening their scope will help tourism by funding improvements to more venues.
If Measure N passes, revenue from the special taxes could be used for economic development projects to create local jobs, facilities to promote tourism, such as theater and arts venues.
“People will invest in things that will drive tourists to hotels, so this will continue to replenish TOT,” Testa said.
In the past, the hotel tax helped renovate the SAFE Credit Union Convention Center and the Memorial Auditorium.
Testa said that the waterfront and additional youth facilities can be on the list too.
Measure N “supports things that locals can enjoy, and I think that’s a really cool thing,” he said.
Supporters for Measure N include Visit Sacramento ($100,000), Kevin Nagle ($10,000) and Park West Casino ($10,000).
This story was originally published October 14, 2022 at 6:00 AM.