Measure “N” – FACT SHEET
Measure “N” – November 6, 2018 Election
The proposed change in Scotts Valley’s transient occupancy tax (or hotel tax) rate will appear on the November 6, 2018 ballot as “Measure N.” Measure N will give registered voters the opportunity to approve a rate increase in the transient occupancy tax (TOT) from 10% to 11% Specifically, the language on the November 6, 2018 ballot provides as follows:
This tax is expected to raise $230,000 each year. Those funds will not be restricted and the City Council can choose to spend the revenue on a variety of essential services and programs.
If passed by the voters, the revenues generated will stay under the control of the City of Scotts Valley. Neither the County of Santa Cruz nor the State of California will share in any of these funds.
Frequently Asked Questions:
Q: What is a TOT, or Transient Occupancy Tax?
A: The "TOT" is a tax “transient" guests pay for the privilege of staying in any Scotts Valley hotel, inn, motel or other commercial lodging establishment for a period of 30 consecutive days or less. These taxes are collected by the lodging operator and are forwarded to the City on a monthly basis.
Q: What is Measure “N”?
A: Measure N is a ballot measure placed before the voters of the City of Scotts Valley that seeks to increase the City’s Transient Occupancy Tax (TOT), or hotel tax, from 10% to 11%.
Q: What types of businesses generate TOT?
A: Resorts, hotels, motels, inns or other overnight lodging accommodations that are rented or leased for a period of 30 consecutive calendar days or less are subject to the TOT.
Q: Who pays TOT?
A: Local residents do not pay TOT. Visitors that stay for a period of thirty (30) consecutive calendar days or less are subject to the TOT. If any individual stays thirty-one (31) consecutive days, the individual is no longer considered a transient starting on the 31st day.
Q: What will the average TOT charge be?
A: As an example, if the average room rate is $100 per night, the current TOT is $10. If Measure “N” passes, the TOT would increase by $1 for a total of $11.
Q: How much funding will Measure A generate annually?
A: It is estimated this TOT increase will generate $230,000 each year.
Q: Why is a TOT necessary?
A: Whether it is an overnight stay or longer, visitors to Scotts Valley use public roads, parks, and other amenities or require assistance from our police department just like other residents. A TOT provides additional general fund revenues to maintain these important services for the entire community.
Q: What can this funding pay for?
A: A TOT is a general purpose tax. This local revenue goes into the City’s general fund and is needed to pay for the following services:
- Police Services
- Local Roads and Infrastructure Projects
- Community Parks and Recreation Facilities and Programs
- Other Essential Services
Q: What has the City of Scotts Valley discussed using this funding for?
A: As part of ongoing planning, the City has identified a number of priorities Measure “A” would fund:
- Maintaining police services.
- Investing in upkeep of the City's public parks.
- Sustaining the City's investment in our public street infrastructure.
- Maintaining recreational services and programs.
Q: What are the TOT rates in neighboring communities?
A: Currently the TOT rates in neighboring cities are:
- City of Santa Cruz 11%
- City of Watsonville 11%*
- City of Capitola 10%*
- County of Santa Cruz 11%
Q: How many votes will it take for Measure “N” to pass?
A: Measure “N” is a general tax measure. California state law requires a simple majority of votes cast in favor of the measure to pass. This means the measure will pass if more than 50% of the votes cast plus 1 vote are in favor of Measure N.
Q: Who is eligible to vote on Measure “N”?
A: All registered voters within the City of Scotts Valley will have the opportunity to vote on Measure “N” on the November 6, 2018 ballot.