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Smart Voter
San Diego County, CA June 8, 2010 Election
Proposition J
Transient Occupancy Taxes of Short Term Rentals
City of Del Mar

Majority Approval Required

Fail: 623 / 43.4% Yes votes ...... 813 / 56.6% No votes

See Also: Index of all Propositions

Information shown below: Impartial Analysis | Arguments |

Shall the ordinance amending the definition of Hotel and thereby requiring the payment of Transient Occupancy Taxes (TOT) by guests of Short Term Rentals (for 30 days or less) be adopted?

Impartial Analysis from City Attorney
EXISTING LAW: The City of Del Mar currently imposes, for the privilege of occupancy in any hotel, a transient occupancy tax on any hotel guest who rents a unit in a hotel for 30 days or less at the current rate of 11.5% of the rent charged by the hotel operator. Under existing law, any such rental in any structure or portion of any structure which has three or more units is subject to this tax. The term "hotel" is defined to include hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof.

EFFECT OF MEASURE ON EXISTING LAW: If a majority of the votes cast on this measure are "yes", then commencing ten (10) days after the vote is declared by the City Council, existing law would be amended to apply the application of the transient occupancy tax regardless of the number of units in a structure and to expressly include short term rental units (for 30 days or less) in the definition of the term "hotel". Consequently, any guest of a hotel (as defined), regardless of the number of units contained in the structure, along with the short term rentals, would be required to pay the transient occupancy tax which is currently at a rate of 11.5% of the rent charged.

FISCAL IMPACT: Undetermined. The tax is a general tax and revenues derived are for the benefit of the City's general fund. The amount of the tax revenue that will result from the proposed tax cannot be determined in advance of knowing the amount of rents received by operators of short term rentals.

The above statement is an impartial analysis of Proposition J. If you desire a copy of the Proposition, please call the City Clerk's office at (858) 755-9313.

Date: March 22, 2010
Leslie E. Devaney, City Attorney

  Official Information

City of Del Mar
News and Analysis

San Diego Union-Tribune

Partisan Information

San Diego Union-Tribune

Del Mar Times
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Arguments For Proposition J Arguments Against Proposition J
Vote Yes on Proposition J + Short-Term Vacation Rental Measure.

Your "Yes" vote on Proposition J will raise about $175,000 a year toward helping Del Mar pay for beach and park maintenance, fire safety and law enforcement. Instead of the citizens of our community shouldering all of these expenses, Proposition J proposes that vacationers who stay in short-term rentals pay their fair share.

Proposition J allows for the collection of a transient occupancy tax (TOT) from visitors who stay for 30 days or less at vacation rentals other than at our local hotels and motels (such as guesthouses, condos and apartments). Hotel- and motel-room vacationers pay the TOT now when visiting Del Mar and, unlike other revenue sources, every TOT dollar collected in Del Mar remains in Del Mar.

Vacationers staying in rental properties do not currently pay a TOT, even though these visitors use the same Del Mar amenities and services as hotel and motel guests. Unless we apply the TOT tax to all vacation renters, the tab for all the things these vacationers enjoy + police, fire and lifeguard protection, and beach and ocean-front park maintenance, among other city services + will continue to be paid by the citizens of Del Mar.

Other North County coastal cities, including Solana Beach, Encinitas, Carlsbad and Oceanside, as well as Chula Vista, Escondido, Imperial Beach and San Diego charge a hotel tax on short-term vacation rentals. We should, too. Vote "YES" on Proposition J to ensure that all visitors pay their fair share of city services during their stay AND to ensure the continued financial health of your community.

Please join us in voting "Yes" on Proposition J.

RICHARD EARNEST, Mayor
Del Mar City Council
DONALD MOSIER
Deputy Mayor
Del Mar City Council
CRYSTAL CRAWFORD
Councilmember
Del Mar City Council
CARL HILLIARD
Councilmember
Del Mar City Council
MARK FILANC
Councilmember
Del Mar City Council

Rebuttal to Arguments For
Increased tax burden on homeowners
Del Mar homeowners are already paying plenty in property taxes to pay for services like police, fire and lifeguard protection. Proposition J would charge yet another tax just for renting a room to a friend or family member. The City's argument for this tax increase says it's a tax on visitors. But the likely reality is that homeowners will be writing checks to the City to cover this tax.

The City doesn't need more money to maintain essential services. Revenues exceeded expenses in 2009 and are projected to do the same this year and the next.

Prop J revenue could pay for employee salary and pension benefit increases
The taxes collected from this measure are not restricted. They could end up being used to pay City employee salary and pension benefit increases. Not a penny is guaranteed to go toward the services outlined in the Council's argument.

Are you breaking the law?
If a family member or friend stays with you for 30 days or less and you get paid anything, you'll be breaking the law if you don't pay this new tax. You could even be subjected to government regulation and inspection of your personal property! If your property is deemed "unsafe," it could cost you thousands in repairs.

The cost of policing these regulations could exceed the revenue it would generate.

Vote NO on Prop J.

Visit www.sdcta.org for the San Diego County Taxpayers Association Prop J analysis.

JOHN HARADEN
Del Mar Resident
LANI LUTAR
President & CEO
San Diego County Taxpayers Association
GARY GONSALVES, M.D.
Co-Founder, Stop Taxing Us
HERSHELL PRICE
Del Mar Resident
CAROL KATZ
Del Mar Resident
The proposed Cottage, or home tax, will be a heavy tax upon our entire community. It is not only a tax; it is further regulation of our property. This tax measure will apply to every home in Del Mar, even if it is not being rented at the present time.

Circumstances change in our lives. If any homeowner should have to rent their home in the future due to unexpected reasons, would we want this tax and regulation to be in place? It will be, if this proposition passes. If you decide to rent your home on a short-term basis + even for a week + you must complete an application, be approved, be issued an annual permit which must be paid for, you must comply with written regulations dictating the use, you must keep records, then collect and pay the tax to the city. Why should our homeowners be burdened by these unneeded bureaucratic requirements?

Some homeowners rent their homes JUST TO HELP PAY THEIR PROPERTY TAXES. The right to rent our homes on a short-term basis has been enjoyed without any problems or government regulation long before Del Mar was a city. The bureaucratic costs of administration and enforcement will likely exceed questionable projected revenue benefits.

Short-term rentals are part of the fabric of Del Mar and have never needed regulation. This regulation will cause a loss of property rights we have always had. Once we give up our property rights by voting to regulate, it is almost impossible to get them back from government; they're gone forever.

This tax will be enforced by internet snooping to check on just who is renting their home. Do we need more government intrusion in our lives? Stop this divisive and unwarranted tax.

Vote NO on Proposition J.

HERSHELL PRICE
Del Mar Resident
H. RANDALL STOKE
Del Mar Resident
JILL CAREY
Del Mar Resident
MERNA STURGIS
Del Mar Resident
ADMIRAL JACK BATZLER, Retired, USN
Del Mar Resident

Rebuttal to Arguments Against
Proposition J is a proposed tax on tourists, not a tax on cottages or homes or on Del Mar homeowners. The proposition, called a transient occupancy tax or TOT, would require vacation rental guests who stay 30 days or less to pay the same tax that Del Mar hotel and motel guests currently pay. The tax is bourne by the tourist, not the homeowner.

Why should tourists pay this tax? Tourists staying in short-term rentals use city services, including our beaches, parks, fire safety, and law enforcement and do not have to pay for them. Del Mar residents and businesses pay for these services, as well as hotel and motel guests who visit Del Mar.

Proposition J is in the best interests of the citizens of Del Mar. This is a local tax. All of the funds collected from tourists stay in the City. It is one of the few ways Del Mar can have tourists help pay to fund services in our community.

Who would be against Proposition J? Tourists who stay in these rentals. Without this proposed tax, they enjoy the benefits without paying their fair share of the costs of keeping our City safe and beautiful.

It's only fair to treat all tourists the same way. Solana Beach, Encinitas, Carlsbad, Oceanside, Chula Vista, Escondido, Imperial Beach, San Diego, and the County of San Diego all charge a TOT on vacation rentals.

RICHARD EARNEST, Mayor
Del Mar City Council
DONALD MOSIER
Deputy Mayor
Del Mar City Council
CRYSTAL CRAWFORD
Councilmember
Del Mar City Council
CARL HILLIARD
Councilmember
Del Mar City Council
MARK FILANC
Councilmember
Del Mar City Council


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Created: August 20, 2010 21:43 PDT
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