City Lays Out Its Revenue Options. None of Them Are Easy
Council wrestles with revenue options in the face of a looming fiscal cliff. Another attempt to raise local sales tax hovers on the horizon.
10 min read
Use our interactive model to easily generate different scenarios for revenue generated by tax on hotel beds and short-term vacation rentals. Move each slider to dynamically create a scenario. The defaults are set roughly at today's current levels, but you can model different room rates, tax rates, enforcement rates (for STVR's) as well as a 'displacement factor'. This lets you model the impact on current hotel occupancy rates that may occur with more STVR availability.
This model isn't designed to offer an opinion on the right answer for our city. It's designed to let you create your vision for the city, and to see the impact on revenue.
Remember - TOT is the most productive property tax that the city has. It is paid 100% by 'visitors', but is used to pay for the infrastructure that is enjoyed by residents. It is also the only tax that is entirely retained by the city. Unlike secured property tax (that you pay on your own home) or sales tax, it all goes into city funds.
This model is only accessible to Hermosa Review subscribers.