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November 6, 2018 — California General Election
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Local

City of Indian Wells
Measure K - 2/3 Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Passed

1,625 votes yes (73.1%)

598 votes no (26.9%)

100% of precincts reporting (3/3).

2,223 ballots counted.

To maintain general City services such as police and fire protection, street operations and maintenance, and community activities including Indian Wells Golf Resort, shall the Indian Wells Municipal Code be amended to increase the Transient Occupancy (Hotel) Tax rate from 11.25% to 12.25% of rent charged for transient occupancy of any hotel room or similar lodging, generating approximately $700,000 annually for unrestricted general revenue purposes, until ended by voters?

What is this proposal?

Measure Details — Official information about this measure

Impartial analysis / Proposal

The City of Indian Wells currently imposes a transient occupancy tax (“TOT”), also generally referred to as a “hotel tax.” It is currently collected at the rate of eleven and one-quarter percent (11.25%) of rent paid by guests to occupy a room or space in a hotel, a short-term residential rental, or similar lodging (referred to herein as a “lodging facility”). The TOT is imposed upon occupancy of a lodging facility within the City for dwelling, lodging, or sleeping purposes for a period of thirty (30) consecutive days or less. The TOT currently provides $7 million annually to the General Fund to pay for general City services and programs.

The General Fund pays for general City services, including without limitation police, fire and emergency medical response, street and road operations and maintenance, and resident events.

Measure “K” would increase the TOT rate from eleven and one-quarter percent (11.25%) to twelve and one-quarter percent (12.25%) of the rent paid by guests to occupy a room or space in a lodging facility. It is anticipated that this rate increase will provide an additional $700,000 in new revenues to pay for general City services and programs.

Measure “K” was placed on the ballot by the City Council and is a “general tax”. Therefore, pursuant to California Proposition 218, Measure “K” must be approved by a majority of the voters.

A “Yes” vote on Measure “K” will authorize the 1% TOT rate increase.

A “No” vote on Measure “K” will not authorize the 1% TOT rate increase.

The above statement is an impartial analysis of Measure “K”. If you desire a copy of the Measure, please call the elections official’s office at (760) 346-2489 and a copy will be mailed at no cost to you.

By:           Stephen P. Deitsch, City Attorney

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

Hotel transient occupancy tax (TOT) is an important, needed revenue source for the City of Indian Wells, enabling the City to continue providing quality public services to its community. The City’s primary economic engine is tourism and the City collects TOT primarily from the four major hotels within the City. Transient occupancy tax is paid by guests staying at Indian Wells hotels and will have no effect on residents.

The City Council developed a 10-Year Forecast Gap Analysis projecting fiscal reality for the City. The City Council has taken steps to reduce expenditures and increase revenues to maintain fiscal stability. The Transient Occupancy Tax measure will help to ensure that the City has enough resources to provide for projected public safety costs and the ability to maintain public streets and other improvements.

The City needs your support to increase the transient occupancy tax from the current rate of 11.25% to 12.25%. The new tax rate is projected to generate approximately seven hundred thousand dollars ($700k) annually in additional revenue needed to help ensure the long-term fiscal health of the City. The proposed 12.25% rate is less than the rate charged in Palm Springs and below the average for a luxury destination across the country.

The proposed transient occupancy tax increase is fair, reasonable and necessary to ensure the long-term fiscal strength of the City, and the continuation of key municipal services and amenities. VOTE YES on ballot measure K to increase the transient occupancy tax.

By:          
Ted J. Mertens, Council Member
Edward Peabody, Council Member

— County of Riverside Registrar of Voters

Arguments AGAINST

NO ARGUMENT FILED AGAINST MEASURE "K"

— County of Riverside Registrar of Voters

Read the proposed legislation

Proposed legislation

ORDINANCE NO.

AN ORDINANCE OF THE PEOPLE OF THE CITY OF INDIAN WELLS, CALIFORNIA, ADDING SECTION 3.12.015 TO, AND AMENDING SECTION 3.12.030 OF, CHAPTER 3.12 OF TITLE 3 OF THE INDIAN WELLS MUNICIPAL CODE INCREASING THE RATE OF THE CITY’S TRANSIENT OCCUPANCY (HOTEL) TAX FROM 11.25% TO 12.25%.

(NOTE: Additions are highlighted in bold italics and deletions are highlighted in strikeout)

NOW THEREFORE, THE PEOPLE OF THE CITY OF INDIAN WELLS DO ORDAIN AS FOLLOWS:

SECTION 1. Subject to the approval of a majority of the voters of the City of Indian Wells at the regularly scheduled election so designated by the City Council in a separate resolution placing the proposal on the ballot for such election, Chapter 3.12 of Title 3 of the Indian Wells Municipal Code is hereby amended by adding Section 3.12.015 and amending Section 3.12.030 to read as follows:

“3.12.015 Purpose – General Fund Revenue.

All revenues generated by this tax shall be deposited into the City’s general fund and may be spent for unrestricted general revenue purposes.

3.12.030 Imposition.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eleven and one quarter twelve and one-quarter percent (11.2512.25%) of the rent or other payment made to the operator or otherwise payable by the transient in consideration of his or her occupancy. This tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator at the time the rent or other consideration is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due when the transient ceases to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator. Tax on occupancies furnished transients which is chargeable but not charged, in exchange for services of any kind, is due and  payable to the City by the operator, the amount of tax being determined on the basis of eleven and one quarter twelve and one-quarter percent (11.2512.25%) of the current rental values of the accommodations furnished. The tax payable upon the sale or transfer of interest in a time-share program shall be payable to the Tax Administrator. The operator shall notify the Tax Administrator of the name and address of all participants in any time-share program and shall, within thirty (30) days of any change in the participants of any time-share program, notify the Tax Administrator of the name and address of any new participant.”

 

SECTION 2. Pursuant to Article XIIIB of the California Constitution, the appropriation limit for the City of Indian Wells will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance.

SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid.

SECTION 4. This Section shall not be repealed or amended, except by a measure approved by a majority of the electors voting on the issue at a Regular Municipal Election, or at a special election called for that purpose.

SECTION 5. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Indian Wells voting at a Regular Municipal Election to be held on November 6, 2018, and shall take effect ten (10) days after the City Council has certified the results of the Regular Municipal Election by resolution.

SECTION 6. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 6, 2018, by signing where indicated below.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED AND ADOPTED by the people of the City of Indian Wells on the 6th day of November, 2018.

Dated:

TED J. MERTENS
MAYOR

 

ATTEST:  

ANNA GRANDYS
CITY CLERK

APPROVED AS TO FORM: 

STEPHEN P. DEITSCH
CITY ATTORNEY

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