Monday, 12 April 2010 02:00

Plymouth Looks At 10% Transient Occupancy Tax

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slide1-_plymouth_looks_at_10_transient_occupancy_tax.pngAmador County – The Plymouth City Council on Thursday took a step toward increasing the city’s Transient Occupancy Tax from 6 percent to 10 percent, by directing staff to prepare a resolution for a later meeting. Staff was directed to prepare a resolution that would increase the Transient Occupancy Tax on hotels, motels and mobile home parks inside city limits. The change will require a city-wide measure to be placed on the ballot by the county supervisors, and it would pass only with a 50 percent plus 1 vote of registered Plymouth voters. The council also asked staff to prepare language for a non-binding advisory measure to accompany the TOT measure on the ballot. The council wanted the advisory to ask voters if 2 percent of the 4 percent increase should be spent on enhancing tourism, and 2 percent should be spent on streets, roads and landscaping. City Attorney Steven Rudolph said the advisory vote “may be legally not binding, but it probably has some political restrictions.” Rudolph said staff would explore definitions of tourism spending. City Manager Dixon Flynn recommended a 12 percent TOT tax, an increase of double the existing 6 percent. The council unanimously agreed to start the paperwork for the 10 percent TOT, but did not vote on the resolution supplied by Rudolph, because it left out the number of the percentage. Rudolph said: “I don’t think it would be appropriate since there wasn’t a number in there.” The council decided to seek a “general tax” increase, requiring a simple majority to pass, rather than a “special tax.” The special tax would have specifically designated spending areas, but would require a 2/3rd majority of the vote to pass. Councilman Jon Colburn wondered if an increase would simply go into the city general fund, and pay salaries, as is done with the current 6 percent TOT tax, which raised $75,000 last year. Flynn said a general tax could be accompanied with the advisory vote, and a list of 8-10 items on which spending could be made. Mayor Patricia Fordcye said “if we could enhance the city, it would bring in tourism.” She said extra funds should go toward any fixes that will help tourism, such as paving, sidewalks and flowers. Councilman Mike O’Meara agreed, saying it would be good to spend it on signage, landscaping, streets and sidewalks, and to “promote the area more.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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