San Diego City Council Hikes Taxes — Will Mayor Sanders Use His Veto Pen?
What does it mean when of all people on the San Diego City Council, it is Donna Frye that is the articulate voice against bigger government? Well, last week, that is exactly what happenned, as she and colleague Tony Young cast the only two dissenting votes on hiking the city’s hotel-room tax. I read with disappointment that the City Council in San Diego voted 6-2 (with only, of all people, Donna Frye and Tony Young voting no) to create what they call a "tourism marketing district" in San Diego. Let me explain how this works. In the geographic area specificied for the district (in this case, a broad area) there are 175 hotels. The Council, in establishing this district, increased the hotel tax for these businesses (via the bill on their guests) by 2% raising the hotel room tax (called a "transient occupancy tax") to 12.5% from 10.5%. What was the justification for an increase of taxes in the City of San Diego? The theory is that this is a tax that was "asked for" by the hotel industry, as the funds coercively taken… Read More