"Faced with a potential budget shortfall of up to $65 million, San Jose is weighing a ballot measure to raise hotel taxes, as the city needs an infusion of cash to fund critical services amid stagnating revenue. Over the past two decades, San Jose has resolved more than $800 million in shortfalls primarily by slashing services and reducing its city workforce, earning it the distinction of having the lowest number of full-time employees per capita among the state's largest cities."
"With the local economy still sluggish and other revenue streams underperforming, city officials argue the transient occupancy tax from 10% to 12% would add $10 million in annual recurring revenue without negatively impacting the hospitality industry. Initial polling conducted by Fairbank, Maslin, Maullin, Metz & Associates, Inc. found that 55% of likely voters would support an increase, with another 12% undecided."
"While the community can take pride in the City as a lean organization, additional ongoing resources are needed to meet the increased scale and complexity of the community's needs, Assistant City Manager Lee Wilcox wrote in a memo to the City Council recommending the ballot measure, noting that the council has repeatedly asked staff to explore options to generate more revenue."
San Jose faces a potential budget shortfall of up to $65 million and is weighing a ballot measure to raise hotel taxes. Over two decades the city resolved more than $800 million in shortfalls mainly by slashing services and cutting its workforce, leaving it with the fewest full-time employees per capita among the state's largest cities. Officials estimate increasing the transient occupancy tax from 10% to 12% would add about $10 million annually without harming the hospitality industry. Polling shows 55% support and 12% undecided. A mid-year report projects general fund revenues $15 million to $20 million below expectations, driven by lower property and utility taxes.
Read at www.mercurynews.com
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